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RJ Reynolds

Janet C. Mangini V. R. J. Reynolds Tobacco Company. Videotaped Deposition of R.J. Reynolds Tobacco Company Through Its Designated Representative Lynn Beasley and Exhibits 1-10 and 18-33.

Date: 29 May 1997
Length: 464 pages
517142101-517142564
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Mangini vs R.J. Reynolds Lynn Beasley -5/29197 PAGE 1 TO PAGE 346 i CONDENSED TRANSCRIPT AND CONCORDANCE PREPARED BY: TOOKER & ANIZ Certified Shorthand Reporters 131 Steuart Street, #201 San Francisco, CA 94105 Phone: (415) 392-0650 FAX: (415) 512-9543
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BSA Mangini vs R.J. Reynolds Lynn Beasley • $/29i97 ,,,.,A .A Page 19 (1) provided - (2) A. When you say provided, what do you mean? (3) Q. Shown. (4) A. Shown. Okay. (5) Q. Does that change your answer? (6) A. No. (7) Q. Okay. (8) A. I just wanted to clarify that. (9) Q. Okay. With respect to documents that you were (10) provided by your counsel, were any of those documents (1l) prepared by any person other than R.J. Reynolds Tobacco (12) Company? (13) MS. BIXENSTINE: I object to the extent it calls (14) for speculation on the part of Ms. Beasley. (15) MR. JANACEK: How can it being speculation if (16) she's seen a document that wasn't produced by R.J. Reynolds (17) Tobacco Company? (18) MS. BIXENSTINE: You didn't say produced, you said (19) prepared. And to the extent that she knows who prepared it, (20) she can answer. (21) THE WITNESS: I don't know. (22) MR. JANACEK: Q. So you can't tell if the (23) document - you have no ability to determine whether or not (24) a document was a document generated or maintained by (2S) R.J. Reynolds Tobacco Company versus someone else? Page 20 (1) MS. BIXENSTINE: Objection. That - your first (2) question was whether she looked at any documents that were (3) prepared by anyone other than R.J. Reynolds Tobacco (4) Company. You've now switched the question. So I just want (S) that to be pointed out. (6) MS. LAPORTE: That's not an objection, Counsel. (7) MR. JANACEK: Also, you're speaking a lot more (8) than the witness is. And if you want to try to get this (9) wrapped up in the next two days, you're going to have to cut (10) down your speaking objections. (11) MS. BIXENSTINE: Frank, I have a right to object (12) to objectionable questions. • (13) MS. LAPORTE: Only on the grounds that are (14) provided under California law, and the switching gears is (1S) not one that is authorized. (16) MS. BIXENSTINE: You're switching questions. I(17) just wanted to point that out. (18) MS. LAPORTE: You're coaching. (19) MR. JANACEK: That's fine. If I can ask a (20) question, then I can ask a question. If I want to ask (21) another one, I can ask another question. The fact that I've (22) asked a different question doesn't give you grounds to (23) object and to testify for the witness. (24) MS. BIXENSTINE: I'm not testifying for the (23) witness. Go ahead. Page 21 (1) MR. JANACEK: Please limit your objections to - (2) MS. BIXENSTINE: I will object, Frank, to all of (3) your questions that are objectionable, which yesterday was (4) virtually all of them. And if that is the case today I will (S) object again. That is my right under the rules, and you (6) will not prohibit me from exercising my rights under the (7) rules. (8) MR. JANACEK: I'm just requesting that you would (9) please keep your objections to a very concise statement (10) rather than the long diatribes like that one. (11) MS. BIXENSTINE: I will exercise my rights under (12) the rules. (13) MR. JANACEK: Q. Ms. Beasley, other than (14) documents - excuse me. You didn't see any documents - or (15) you did look at documents that were prepared by (16) R.J. Reynolds Tobacco Company? Correct? (17) MS. BIXENSTINE: Objection. Asked and answered. (18) MR. JANACEK: It's also not an objection under (19) California law. (20) Q. Correct? (21) A. Yes. (22) Q. Did you look at documents that ' were maintaineo by (23) R.J. Reynolds Tobacco Company? (24) A. What do you mean by maintained? (25) Q. Maintained means they are in R.J. Reynolds Tobacco Page 22 (1) Company files. Presently or at some other point in time. (2) A. I don't know. (3) Q. You don't know if you looked at documents that (4) were in R.J. Reynolds Tobacco Company files? (5) A. I don't know. (6) Q. You don't think that documents that were prepared (7) by R.J. Reynolds Tobacco Company would have been maintained (8) by R.J. Reynolds Tobacco Company? (9) A. They could have been. (t0) Q. But you don't know that? (11) A. I don't know that. I didn't check that. (12) Q. What do you understand the word maintained to (13) mean - to mean? (14) A. What you Just gave me the definition of. (IS) Q. Not my definition. What is your definition? What (16) types of documents does R.J. Reynolds Tobacco maintain? (17) MS. BIXENSTINE: Objection. Overbroad. (18) THE WITNESS: You know, I can tell you what kind (19) of documents I maintain. I can't really speak for the (20) entire company. (21) MR. JANACEK: Q. And you wouldn't be able to (22) tell, for example, if I were to randomly pull out a document (23) that I know was produced by R.J. Reynolds Tobacco Company if (24) it was a document that was identified as being a(2S) R.J. Reynolds Tobacco Company document? You would have no Page 23 (1) ability? (2) A. No ability to what? (3) Q. To determine that? (4) A. To determine what? (S) Q. Whether it was an R.J. Reynolds Tobacco Company (6) document. (7) MS. BIXENSTINE: Objection. You are asking her (8) whether it was maintained by R.J. Reynolds Tobacco Company. (9) THE WITNESS: Again, if you showed me a document (10) and it said R.J. Reynolds on it, I would assume it was a (11) R.J. Reynolds documents. (12) *Q. Did you see any of those types of documents, (13) documents that said R.J. Reynolds Tobacco Company on them? (14) MS. BIXENSTINE: Objection. Asked and answered (15) two or three times now. (16) THE WITNESS: Yes. (17) MR. JANACEK: Q. And you saw - but you don't (18) know if those were prepared or just in their files, by (19) R.J. Reynolds Tobacco Company? (20) A. I don't know. I didn't check that. (21) Q. Did you see any documents that did not have (22) R.J. Reynolds Tobacco Company on them? (23) A. I Just don't recall. (24) Q. When did you look at these documents? (25) A. I was - I think it's maybe a week and a half, two Page 24 (1) weeks ago. Something like that. (2) Q. And you don't remember what happened last week or (3) two weeks ago? (4) MS. BIXENSTINE: Objection. Argumentative. (5) MR. JANACEK: Q. You can answer. (6) A. Remember what? f Page 19 to Page 24 (415) 392-0650 Tooker & Antz !51-J,LI a103PA •
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BSA tiiangini vs R.J. Revnolds Lynn Beasley - 5/29/97 unilaterally by the (11) defendants to force plaintiffs to take a deposition. And we (12) have not resolved this disagreement over the protective (13) order. We have issues of both practicality and principle, (14) such as, for example, the protective order in Mangini (15) provides that even non-confidential information can only be (16) used for purposes of this, the Mangini case, and other (17) issues with that. (18) MS. BIXENSTINE: Let's proceed. (19) THE VIDEOGRAPHER: Excuse me. If there are no (20) further stipulations, the court reporter may swear in the (21) witness. (22) (Witness sworn.) (23) EXAMINATION BY MR. JANACEK (24) MR. JANACEK: Q. Hi, Ms. Beasley. Can you state (25) your full name and spell that for the court reporter. Page 9 (1) A. It's Lynn Beasley. L•Y-N-N. Beasley, (2) B-E-S-A-L-E-Y. (3) Q. Ms. Beasley, have you had your deposition taken (4) before? (5) A. Yes. (6) Q. You might need to speak up for the court reporter (7) and for the videotaper here. How many times have you had (8) your deposition taken? (9) A. Once. ( l0) Q. What type of action was that? What type of a(11) lawsuit was involved with your deposition? (12) A. It was the Cooper case. (13) Q. What's the Cooper case? (14) A. I - I don't recall the specifics of it. It's (15) been a number of years ago. (16) Q. Do you know what rype of an action it was? Was it (17) a personal injury case or some business dispute? (18) A. I just don't recall the specifics. (19) Q. In what capacity were you testifying? (20) A. As head of marketing for the Winston brand. (21) Q. So this was while you were at R.J. Reynolds (22) Tobacco Company? (23) A. Yes. (24) MS. BIXENSTINE: You have to speak up. (25) MR. JANACEK: Q. Can you - do you remember the Page 10 (1) general nature of your testimony? I'm trying to figure out (2) what it is that you were testifying on. (3) A. You know, he asked me a lot of questions about how (4) I felt about cigarettes and how we market it and that sort (5) of stuff. Page 8 to Page 13 (6) Q. So it was - this was an action that was filed (7) against R.J. Reynolds Tobacco Company? (8) A. I don't really 'recall the specifics. If you need (9) them, I'll have to go back and look. I don't recall them. (10) Q. Okay. 'But you were testifying basically about (11) your role in the marketing?, Or about Reynolds' role in the (12) marketing? (13) MS. BIXENSTINE: Objection. (14) THE WITNESS: I just - I don't recall the (15) specifics. (16) MR. JANACEK: Q. Do you recall when that (17) deposition took place? (18) A. Not specifically. It was probably a couple of (19) years ago, or more. I don't know. I don't - I don't (20) recall. (21) Q. I'm sure your counsel has talked to you about the (22) deposition process. But let me kind of outline what's going (23) to happen today. (24) The court reporter who is over there is going to (25) take down everything that's said in the room, from you or Page 11 (1) me, your counsel or anyone else. He'll put that into a (2) booklet form. It's called a deposition transcript. (3) That deposition transcript will be provided to you (4) once it's done, and you'll have a chance to review the depo, (5) the transcript, mike sure that what was said in your (6) answers, the questions, is generally accurate. You can (7) also, to the extent you've got additional infot'tuation, (8) change your answers. (9) I will caution you, though, that if you do change (10) your answers, anyone can use those changes in a court of law (11) and point out that you've changed your answers. So I would (12) caution you to try to be as truthful and accurate as you can (13) today. (14) Do you understand what I've just told you? (15) A. Yes. ~ (16) Q. You might need to speak up. I know it's difficult. (17) Do you understand that your testimony today has (18) the same force and effect as If you were testifying before a(19) judge or a jury at a trial? (20) A. Yes. (21) Q. I would like to go over a few. ground rules. And (22) the first one. I said it a couple times, we'll try to speak (23) up. It'a difficult for the court reporterto hear if we (24) speak softly. (25) Please wait until I complete my question before • (413) 392-0650 xH Ax,:. Page 1: (1) you start your answer, and I'll do the same for you.. I(2) won't ask you a question while you're in the middle of your (3) answer. That makes it easier for the court reporter to take (4) down what's said. If we're both talking, he has trouble (5) taking down both sides. (6) Please limit your responses to a verbal response, (7) a yes or a no if the question is a yes or no question. (8) Don't answer by um-hmms or unh-uhs. And don't answer by (9) shaking your head, you know, in the affirmative or negative, (10) because those don't translate well with respect to the (11) transcript. You may mean an um-hmm to mean yes and the (12) court reporter may take it as a negative, the opposite. So (13) give a verbal response. (14) If you don't understand my question, please ask me (IS) to clarify it. That way we'll both make sure that we're (16) both speaking about the same subject. (17) If you need a break at any time, just let me know (18) and we'll take a break. (19) And finally, if you're not certain of a fact, I'm (20) entitled to your best estimate. Do you know the difference (21) between an estimate and a guess? (22) A. Would you explain It? (23) Q. Sure. For example, you walked In the lobby today (24) and you passed by our receptionist's desk. You might not (2S) know how long that desk is if I asked you how long the desk Page 13 (1) is. But since you'd seen it you could give an estimate. (2) You would know the ballpark. (3) If you had not walked in the desk and I asked you (4) on the telephone how long is the desk in the lobby, you (5) would have no basis to make that determination. That would (6) be a guess, if you tried to give an answer. (7) Do you understand the difference between an (8) estimate and a guess? (9) A. Yes. (10) Q. Ms. Beasley, have you had any drugs or alcohol (11) within the last 24 hours that would impair your ability to (12) testify truthfully and accurately today? (19) A. No. (14) Q. Is there any other reason why you couldn't testify (15) truthfully and accurately today? (16) A. No. (17) Q. Have you talked with anyone about your deposition (18) today? (19) A. No. (20) Q. You didn't talk with your counsel? Tooker & Antz 51-4iy aioa A
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Mangini vs R.J. Revnolds BSA Lynn Beasley - t!29/97 (16) Q. Yeah. (17) A. No, not that I recall. (18) Q. So they weren't discussing anything that was going (19) on at R.J. Reynolds Tobacco Company? (20) MS. BIXENSTINE: Objection. (21) THE WITNESS: I didn't say that. (22) MR. JANACEK: Q. You don't recall if they (23) discussed anything that was going on at R.J. Reynolds (24) Tobacco Company? (25) A. No, I didn't say that, either. Page 30 (1) Q. Well, what did you say? (2) A. You asked me, I believe, if they reflected events (3) that were taking place. (4) Q. Correct. And your answer was no? (5) A. My answer was I don't recall them talking about (6) events. (7) Q. What do you mean by - what do you mean by (8) events? Events, I'm talking about happenings, information, (9) occurrences. Generally - (10) A. Oh. (11) Q. - matters pertaining to R.J. Reynolds Tobacco (12) Company.. - (13) A. Oh, yes. The documents discussed matters (14) pertaining to R.J. Reynolds Tobacco Company. (15) Q. And those events were events that you were aware (16) of generally? (17) MS. BIXENSTINE: Objection. Asked and answered. (18) THE WITNESS: Some of them were. I don't - (19) MR. JANACEK: Q. And some of them were events (20) that you hadn't thought about for a very long time? (21) MS. BIXENSTINE: Objection. Misstates the (22) witness' testimony. (23) THE WITNESS: I said some of them were things I(24) was aware of. Some of them weren't. (25) MR. JANACEK: Q. Were some of them things you Page 31 (1) were aware of at one point in time and- (2) A. What do you mean? (3) Q. You just testified that the documents reflected (4) some information about some things that you were aware of (S) and some things that you weren't aware of. (6) A. Um-hmm. (7) Q. With respect to the things that you weren't aware (8) of, was that information that you at one moment in time, you (9) know, meetings you had taken place in, reports you had seen, (l0) that type of thing? (11) A. No. (12) Q. So you knew - if - if you weren't aware of the (13) information on the documents you've seen in preparation for (14) your deposition, you had never seen or heard of that (15) information before? (16) A. Correct. (17) Q. And with respect to the information that you were (18) aware of on the documents that you've seen, that was a11- (19) you had present recollections of what was going on on the (20) information that was being reported in the documents? Is (21) that correct? (22) A. It refreshed my memory. (23) Q. Okay. With respect to those documents that (24) refreshed your memory, what documents did you see? (25) A. What specific documents? Page 32 (1) Q. Yes. (2) A. I saw a document that was - I believe it was (3) written by McCann-Erickson, and it was just a perspective on (4) advertising for the Camel brand. (5) Q. What - can you give me some more details on the (6) document? (7) A. It was their perspective on the kind of (8) advertising Camel should have. (9) Q. Do you know when the document was made? (10) A. I'm not sure. I think it was around'87, but I'm (11) not sure. (12) Q. Do you know If it was before or after (13) implementation of the Joe Camel campaign? (14) A. I think It was before, but I'm not positive of (15) that. I'd have to get it back out and look at the date. (16) Q. Do you recall if it was before or after the 7Sth (17) birthday promotion? (18) A. Isn't that the question you just asked me? What (19) question did you ask me Just before this one? (20) Q. Let me ask you, is there. a difference in your mind (21) between the 75th anniversary promotion and the Joe Camel (22) advertising campaign? (23) A. My perspective 4 that the Joe CanleTcanipat=a (24Ystaeted -running with the 7Sth birthday sell creation. (25) Q. That's different than Reynolds's position has been Page 33 (1) telling us - (2) A. It started - it started out as a promotion, (3) and - but it was advertising. And because It continued, I(4) see that as part of the Joe Camel campaign evolution. (5) Q. So when - for the purposes of this deposition, (6) It's - you're using the term Joe Camel campaign to include (7) the 75th anniversary? Is that correct? (8) A. That's correct. (9) Q. Do you know who authored the document at (10) McCann-Erickson? (11) A. No. (12) Q. You said it was talking about the perspectives on (13) the Camel brand campaign. Do you remember what, with more (14) specifics what that documents was discussing? (1S) A. It was discussing the need for male values and (16) men, things about men and male bonding and It was kind of a (17) psychological piece, I guess. I don't know. (18) Q. Do you know what type of document it was? A(t9) letter? Or report? A memo? (20) A. I think it was Just a perspective. I don't know (21) if it was in a memo format or not. (22) Q. Was that a document you had seen before? (23) A. Yes, I believe I had. (24) Q. And when would you have seen it before? (2S) A. Back when It was written. Page 34 (1) Q. What other documents along those lines do you (2) remember seeing? (3) A. I don't. (4) MS. BIXENSTINE: Objection. You can answer on (5) documents that refreshed your recollection. (6) THE WITNESS: I don't. (7) -MR. JANACEK: Q. So there were no documents (8) discussing meetings you attended, for example? (9) A. I didn't say there weren't any. I said I don't (10) recall any others. (11) Q. Talking about the documents you were shown a week (12) and a half, two weeks ago - (13) A. Um-hmm. (14) Q. - do you recall - you don't recall any documents (15) discussing meetings that you had attended? (16) A. Meetings that I had attended? No. (17) Q. You don't recall seeing any $ocumentadiscussing-(1$y aspects of the campaign that you were involved in? (19) A. No, I don't remember that. (20) Q. Do you know if there were any documents discussing (21) the Joe Camel campaign, other than the McCann-Erickson one (22) you were just describing? (23) A. You mean that were shared with me by counsel? (24) Q. Um-hmm. (25) A. In preparation? Page 35 (1) Q. Yes. (2) A. I don't - I don't remember any Tooker & Antz Page 29 to Page 35 (415) 392-0650 51-4 1a al0-1 A- a
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%% erc people (14) internally in media %kho, once I approved the plan, go out (15) and actually implement It. (16) Q. So there would be people that were more (17) knowledgeable than you on, for example, where billboards (18) were placed? Is that- ( l9) A. No. (20) Q. Am I understanding you correctly? (21) A. No. (22) MS. BIXENSTINE: Objection. You're talking about (23) more knowledgeable at Reynolds? (24) MR. JANACEK: Yeah, at Reynolds. (25) THE WITNESS: No. Page 46 ( l) MR. JANACEK: Q. So there's no one that would (2) know, for example, if you didn't know where, you know, the (3) location of a billboard, then no one at Reynolds would be (4) able to find that out? (5) A. At - at - ffnd it out? (6) Q. Right. (7) A. Well, we could call the suppliers and find it out, (8) obvious. (9) Q. But I'm talking at Reynolds., (10) A. At Reynolds? The location of a billboard? (TI) Q. Asanexample. (12) A. No. t t 3) Q. And is - is there - currently, is there anyone (14) at Reynolds that's responsible for placement of billboards, (1S) Camel billboards? (16) A. That's - it's - our media department was (17) outsourced outside of the company. (18) Q. So is there anyone that oversees your third party (19) vendors with respect to billboard placement? (20) A. Yes. (21) Q. Who is that? (22) A. Patty Itterman. (23) Q. And what are Patty Itterman's roles? (24) A. She interfaces with the suppliers we hire. (25) Q. So she's kind of a day-to-day person that works Page 47 ()) with the supplier and answers questions and - (:) MS. BIXENSTINE: Objection. What do you mean by (3) supplier? Are you talking about the media placement or the (4) person who actually places the billboards? (5) MR. JANACEK: Q. What do you mean by supplier? (6) A. We have - what I mean by supplier is Long Haymes (7) Carr who actually does the media planning for us. And then (8) obviously there are billboard suppliers that they buy the (9) billboards from that actually put the billboards up. They (t0) don't put the billboards up. (11) Q. Can you spell Long Haymes Carr for the court (12) reporter. (13) A. Long, L-O-N-G, Haymes, H-A-Y-M-E-S, Carr, C-A-R-R. (14) Q. What is Long Haymes Carr role? ((S) A. Tbey plan the media for us. (16) Q. So,they do the planning? (17) A. Um-hmm. (18) Q. Would the planning include locations? Sticking to (19) billboards. (20) A. Yes. (21) Q. So they would advise Reynolds Tobacco where (22) billboards should be placed? Is that correct? (23) A. We provide them with our advertising code and all (24) of our requirements, and they contractually agree to uphold (25) that. And then they work with suppliers who actually own Page 48 (1) the billboards, billboard companies, to find billboards that (2) meet our guidelines. (3) Q. So you give them some guidelines. What are your (4) guidelines in the media to the billboard placement people? (S) MS. BIXENSTINE: Objection. Asked aV answered. (6) You can answer.• (7) MR. JANACEK: Q. You've - let me just get this (8) correct. You've already answered - you've already told me (9) the guidelines you've given to the billboard people for (10) where to place ads and what to do with your ads? (11) A. It's our cigarette industry advertising code. (12) Q. Okay. So you only give them the cigarette (13) advertising code? You don't give them any other (14) information? (IS) A. Oh, sure, we do. (16) MR. JANACEK: Kim, how do you say that's asked and (17) answered, then? (18)` MS. BIXENSTINE: You asked what restrictions. (19) MR. JANACEK: No. I did not. I asked what (20) guidelines. (21) MS. BIXENSTINE: And she said the cigarette (22) advertising code. (23) MR. JANACEK: I asked what guidelines do you give, (24) and you said she'd answered the question. (25) MS. BIXENSTINE: About placement. Page 49 (1) MR. JANACEK: Right. (2) MS. BIXENSTINE: Then you asked a separate. a(3t difftrent question about what other information. and she (4) said 'Yes. I give other information.' You asked a different (5) question. (6) MR. JANACEK: Q. So what guidelines do you give (7) your advertising agencies with respect to where to place (8) billboards? (9) A. We request that billboards be at a minimum S00 (10) feet from a junior high, a high school, an elementary (11) school, a children's playground. (12) Q. So you tell them to place them 500 feet from (13) schools, billboards - or schools, playgrounds, et cetera? (14) A. Junior highs, high schools, elementary. (aS) Q. Where else to you tell them to place your (16) billboards? (17) A. It depends on the brand and it depends on our (18) objectives. Some brands want to only advertise in parts of (19) the country. Some brands wanted national billboards. So it (20) would depend on the brands' objectives. (21) Q. We're talking aboutJoe Camel, the Joe Camel (22) billboards. Where do you tell them to place the Joe Camel (23) billboards? (24) A. Well, again, it would depend on what year we're (25) talking about. Page 50 (1) Q. Let's start in '87. (2) A. All right. (3) Q. Where did you tell - was Long Haymes Carr still (4) the media placement company at that point in time? (5) A. No. (6) Q. Who was? (7) A. We bad an internal media department. (8) Q. And what was the internal media department's (9) function? (10) A. The same as Long Haymes Carr now. (11) Q. When - at some point in time you said that the (12) internal media department was, what, disbanded. I guess? (13) A.Ouuourced. (14) Q. Outsourced? When was that? (15) A. I think it was around '93. (16) Q. Okay. And then in 1993 did - or at whatever (17) point in time it was, is that when you went with Long Haymes (18) Carr? (19) A. Yes. (20) Q. And they've been the media placement vendor (21) since - they're currently the vendor? (22), A. Um-hmm. Yes. (23) Q. Is there anyone at Reynolds that Tooker & Antz (415);392-0650 Page 45 to Page 50
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asa Mangini vs R.J. Reynolds ,10) Q. I'm going to have the court reporter - do you (1!) have Exhibit 2 - provide you with P)aintiff s Exhibit 2. (12) Why don't you take a look at that. (13) A. Okay. (14) Q. Did you see your name under item number 2? (15) A. Yes. (16) Q. So you've been designated on what your counsel (17) have identified on subjects number 1, 3(a) - those general (18) subjects? Do you see that? (19) A. Yes. (20) Q. Okay. Looking at Exhibit No. 18, while there's no (21) numbers, it's my understanding from previous conversations (22) with your counsel that the subjects they've identified by (23) numeral are just the subjects, identified on Exhibit 18 in (24) order. right? (25) A. Okay. Page 41 All (1) Q. So you've been designated as the person most (2) knowledgeable regarding the decision to create, implement, (3) institute or use the Joe Camel advertising campaign. Is (4) that correct? (5) A. Yes, it Is. (6) Q. Did anyone ask you if - if there was anyone more (7) knowledgeable than you on that topic? (8) A. Yes. Kim did. (9) Q. Okay. And is there anyone that's more (10) knowledgeable on the . decision to use the Joe Camel campaign (11) than yourself? (12) A. No. (13) Q. Now, you were the one that decided to go with the (14) Joe Camel advertising campaign? (15) A. I recommended It. (16) Q. You recommended it? But who decided to go with (17) the Joe Camel advertising campaign? (18) A. The decision, I would say, was made by the (19) president and CEO of R.J. Reynolds Tobacco Company. (20) Q. But you don't think he would be more knowledgeable (21) on why It was decided to go with the campaign than you are? (22) A. No. (Witness shakes head.) (23) Q. Okay. (24) MS. BIXENSTINE: I also note that those people are (25) no longer with R.J. Reynolds Tobacco Company. Page 42 (1) MR. JANACEK: Q. Was there anyone else working (2) with you at the time that the Joe Camel campaign was created (3) or implemented? (4) A. What do you mean, anyone Lynn Beasle% • 5;.9-97 else working with me? ;5) There's a lot of people, obviously, that work wtth me. (6) Q. Working on that - on the Joe Camel campaign or (7) the concept at that point in time. (8) A. What do you mean? Like employees? Or what? , (9) Q. Yes. Anyone. Were you - was the Joe Camel (10) campaign, was this something you did strictly by yourself (11) with no input from anyone else? (12) A. Oh, nos Of course not. (13) Q. Who else was working with you? (14) A. I had advertising agencies working with me. (15) Q. Which advertising agencies? (16) A. McCann-Erickson. Trone Advertising. The Coyne (17) Group. The Creative Source. Those are the ones I believe (18) that we used. (19) Q. What about anyone at R.J. Reynolds Tobacco (20) Company? (21) A. Sure. I had assistants working for me. (22) Q. Who were they? (23) A. Let's see, it was - it would have been I believe (24) Cynthia Williams, Mark Labraque, Yasmin Jones. Those are (25) the three key I remember. Page 43 (1) Q. So those were the assistants? (2) A. Um-hmm. (3) Q. Was there anyone that was a boss? Anyone that (4) would have been, you know, someone that you would report to (5) that was involved in the creation of the Joe Camel campaign? (6) A. I reported to Dave lauco. (7) Q. And what was Dave lauco's role? (8) A. He was - I forget it. I don't know what his (9) exact title was, but I think he was group director of (10) several brands, Camel being.one of them. -(11) I was responsible for Camel and then he was (12) responsible for several brands. And I reported to him. (13) Q. But you would have been the top dog with respect (14) to the Camel brand? (15) A. I was the person responsible for Camel. (16) Q. Can you generally describe what Mr. lauco's role (17) would be - would have been? (18) MS. BIXENSTINE: Objection. Asked and answered. (19) THE WITNESS: I reported to him. He was my boss. (20) MR. JANACEK: Q. So he didn't do anything? (21) MS. BIXENSTINE: Objection. Vague. (22) THE WITNESS: You know, of course, he has (23) responsibilities. (24) MR. JANACEK: Q. All right. What were his (25) responsibilities? Page 44 (1) A. His responsibility - obviously, I reported to (2) him. He was my boss. To - you know, he had approval, (3) obviously, for the things I did and recommended, and gave me (4) advice and counsel. Things that a boss does. (5) Q. So you would interact with him on the creation of (6) the Joe Camel campaign? (7) A. I would review with him what we were doing. (8) Q. And you're more knowledgeable than he is with (9) respect to why you went with the campaign, the campaign, Joe (10) Camel campaign? (11) MS. BIXENSTINE: Objection. Asked and answered. (12) THE WITNESS: Yes. (13) MR. JANACEK: Q. You've also been designated as (14) subject number 3(a), that's page 2 on the top line. Do you (15) see that? Person most knowledgeable regarding the cost, (16) placement, location, demographic studies of Joe Camel (17) advertising, magazines, billboards? (18) A. Yes. I've been - It was Joe Camel billboard (19) advertising, Joe Camel magazine advertising. (20) Q. Right. That's 3(a) and (b). (21) A. Um-hmm. (22) Q. Is there anyone at R.J. Reynolds Tobacco that's (23) Involved in the placement of Joe Camel ads on billboards (24) other than youraelf? (25) A. Yes. Page 45 (1) Q. Who? Who else would that have been? (2) A. Are you talking about what time frame? (3) Q. I'm talking generally from the time frame of its (4) inception to the present, (5) A. Oh, gosh. Well, I don't - I couldn't name who (6) was in charge of placing It internally at Reynolds in 1987. (7) I don't know. (8) Q. But it wasn't - (9) A. We - we had an internal media department. (10) Q. But you weren't responsible at that time frame. in (11) 1987? (12) A. I was responsible for the selection of what media (13) we did, approving the media, plan - there , Page 40 to Page 45 (415) 392-0650 Tooker & Antz '51-41u a10054
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BSA Mangini vs R.J. Reynolds Lynn Beaslev - S/19/97 ,,,.,X .•: still - that (24) used to work in the media department. the internal (25) department that was disbanded, that is still working at Page 51 (1) Reynolds? (2) A. Yes. (3) Q. Who is that? (4) A. Patty Itterman. (5) Q. Patty - excuse me? (6) A. Itterman. (7) Q. Itterman? Were you involved in the internal media (8) department when it was around? 1987 to 1993? (9) MS. BIXENSTINE: Objection. Vague by what you (10) mean by involved. (11) THE WITNESS: What do you mean by involved? (12) MR. JANACEK: Q. Were you in the media (13) department? (14) A. No. I provided direction to people who were (15) assigned to the Camel brand on what I wanted. (16) Q. So wouldn't Patty Itterman know more about where (17) billboards were placed, for example, than you did with (18) respect to the 1987 to 1993 time period? (19) A. Oh, no, not necessardly. I don't even know if she (20) bad responsibility for Camel during that time period. She (21) probably didn't. (22) Q. What was her - what was her role? (23) A. In the media department? (24) Q. Um-hmm. (25) A. She was a media planner. Page 52 ( t) Q. So what does she do? (2) A. She would recommend what magazines to advertise In (3) and - based on the brand's objectives, and help out with (4) the billboard plan, that sort of thing. (5) Q. But her responsibility would have been in the (6) magazine side? (7) A. No, I don't really know in 1987 to'93. Really, I(8) don't know.. I don't know if she was assigned to Camel. I(9) don't know If she - I don't know what her specific job was (10) in 1987 to'93. (11) Q. Ms. Beasley, you've also been designated as the (12) person most knowledgeable about the effect of Camel (13) cigarette brand loyalty, brand image and brand (14) identification. Do you see that? Number 4? (15) A. Person - I'm sorry. Would you read it again? (16) Q. Do you see that, the second category from the top? (17) A. Right. (t8) Q. Joe Camel advertising campaign's effect on brand (19) loyalty. image and identification? (20) A. Um-hmm. Yes. (21) Q. Is there anyone at Reynolds that is knowledgeable (22) on these subjects? (23) A. Is there anyone at Reynolds who's knowledgeable on (24) these subjects? (2S) g. Besides yourself. Page 53 (1) A. Yes. (2) Q. Is there anyone that's as knowledgeable as you are? (3) A. No, not for this whole time period. I would say (4) not. (S) Q. What's the whole time period you're Identifying? (6) A. What you ldentified. You told me 1987 to present. (7) Q. You've also been designated as the person most (e) knowledgeable at Reynolds regarding the best way to market (9) cigarettes to people younger than 25. (10) MS. BIXENSTINE: I note that in a letter dated (11) April 23rd, 1997, from Joe Escher to you, Frank, that (12) Reynolds objected to this item in the deposition notice to (13) the extent it called for someone knowledgeable about (14) marketing cigarettes to persons under 18. (1S) You can answer. (16) THE WITNESS: I would be knowledgeable with regard (17) to adult smokers. 18 and older. (t8) MR. JANACEK: Q. And there'i no one that knows (19) more about adult smokers at R.J. Reynolds Tobacco Company (20) than yourself? (21) A. Adult - adult smokers 18 to 25 years - 25 years (22) of age, right, here? (23) Q. Right. (24) A. Is that what we're talking about? (25) Q. That's what we're talking about. Page 54 (1) A. Yes. I would be the most knowledgeable. (2) Q. And you have absolutely no knowledge on the best (3) way to market cigarettes to people under 18? (4) A. I have no knowledge on that. (s) Q. No suspicion - no one at Reynolds has any (6) information about marketing cigarettes to people that are (7) younger than 18? (8) A. Not to my knowledge. (9) Q. Not to your knowledge? So there maybe someone at (10) Reynolds that has information on that topic? ( t t) A. I don't know every single person at Reynolds. (12) There are a lot of people. I don't know anyone, it's - our (13) company policy is very clear. We only market to adult (14) smokers. We only do research among adult smokers. And 1(15) believe that there is no one. I obviously do not know every (16) single person that works at the company. (17) Q. And are you the most knowledgeable person about (18) the designations of young adult smokers? (19) A. Are we still on this paragraph right here? (20) Q. Yes. (21) A. Persons most knowledgeable regarding market (22) research and the best way to market cigarettes to persons 18 (23) to 25 years of age who smoke, including young adult (24) smokers - (25) Q. Actually, that's - I'm sorry to interrupt you, Page 55 (1) but that's not what it says. I just want to know if there's (2) anyone at Reynolds that knows anything more about young (3) adult smokers than yourself. (4) A. Not that I- no, I don't believe ao. (5) Q. What about first usual brand young adult smokers? (6) A. No, I don't believe so. (7) Q. What about younger adult smokers? ' (8) A. No, I don't believe so. (9) Q. And Marlboro smokers? (10) A. No, I don't believe so. (11) Q. You've been designated on the next category, 6. (12) The person most knowledgeable regarding underage smokers, (13) again including young adult smokers. FUBYAS, younger adult (14) smokers and Marlboro smokers. (13) MS. BIXENSTINE: I'll note that we designated (16) Ms. Beasley on 6 (e) through (h), but not 6 In general. And (17) in•the same letter dated April 23rd, 1997, we objected to (18) subjects 6 to the extent that that covered individuals under (19) the age of 18. (20) MR. JANACEK: Q. Ms. Beasley, have you heard the (21) term starter smokers? (22) A. No. (23) Q. You've never heard that term before? (24) •A. No. I mean I - you know, it's possible in news (25) reports when they're talking about kids starting to smoke, Page 56 (1) if you call that starter smokers. (2) Q. And you - have you ever heard the term presmokers? (3) A. No. a PageSO to-page-56 ~815}392-4dsQ Tooker & Antz ~~~~y a1 ID(D 4
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was I believe in 1982. ~)6) Q. Did you take a break between high school and (17) attending the - the AA program? (18) A. Yes. (19) Q. Do you know how long a break you took? (20) A. You know, I don't remember exactly. I think it (21) wa$ at least a year, though. (22) Q. Did you get any other post-graduate degrees (23) besides your MBA? (24) A. No. (25) Q. Have you had any other formal education in Page 67 (1) marketing? (2) A. What do you mean? (3) Q. Any other training, schools, seminars, formal (4) education? (5) A. Oh, sure, I've been to seminars. (6) Q. Any other degrees or specialties? (7) A. Degree - any other degrees? No. (8) Q. You said you'd been to seminars. What types of (9) seminars have you been to? (10) A. I went to one that was given by the Association of (11) National Advertisers on advertising. And I've been to (12) others. (13) Q. Is that something you do to stay current in (14) advertising? (tS) A. Um-hmm. (16) Q. Is that something you do yearly or quarterly or - (t7) A. No, not necessarily. (18) Q. How do you decide when you're going to attend a (19) seminar? (20) A. One comes up. You know, I get ones in the mail (21) all the time. I get invited to them all the time and (=2) depending on the subject, we send - I might send people who (23) work for me or - (24) Q. So it's not something chat's - that you do for a (25) continuing education. for example? Page 68 (1) A. It's - it's obviously for continuing education, (2) sure. To " get information that's happening in the field. (3) Q. When I'm talking about continuing education, (4) lawyers have to stay current, they need to take a. certain (5) number of hours of classes, seminars, articles, et cetera, (6) per year. is there any similar requirement in yourjob? (7) A. No. (8) Q. Have you ever attended a teenage marketing seminar? (13) MS. BIXENSTINE: Prank. I'll let you go into this (14) background, but I'll note that this is - has nothing to do ( t 5) with the subjecu contained in the notice of deposition. (16) THE WITNESS: I'm sorry. What was your question? (17) MR. JANACEK: Q. What were your duties in the (18) advertising part? (19) A. I wasn't really accountable for advertising, but (20) they let me attend some of the focus groups and some of the (21) agency meetings so I could see how things were done. (22) Q. What about product development? (23) A. Same sort of thing. I wasn't you worked on was Now? (9) A. I - my first position was marketing assistant on (10) Now. (11) Q. You also worked on some advertising. What toles (12) did you have in that capacity? budget, how much did we still have remaining. We .vere - If (31 we were going to be on budget each month. (4) Q. So you weren't involved in creating the budget? (5) A. As a marketing assistant on Now, I don't - no, I(6) don't recall being involved with creating the budget, no. (7) Q. And you only - while you were a marketing (8) assistant, the only brand the key person in (24) charge, but I got to come along and see how product tesu (25) were done and development direction was set for the brand, Page 71 (1) that sort of thing. (2) Q. What does product development do? tn r _J ~ ~ N ~ m Oo (3) A. What do you mean, what does product development do? (4) Q. What is product development? (5) A. It means we test our products among our adult (6) consumers that we want - often competitive smokers and (7) current smokers of the brand, adult smokers, and we look for (8) how we perform versus the competition. (9) So on the Now brand, it would be how does Now (10) perform versus Carlton. (11) Q. What do you mean by perform? (12) A. When smokers smoke the two brands, let's say a(13) Carlton smoker smokes Now and smokes Carlton, do they rate (14) Carlton better on overall taste or do they rate Now better (15) on overall taste, and why. (16) Q. Is it only taste is the only concern you have as a (17) marketer? i (9) A. No. (10) Q. What about anyone that works at Reynolds that you (1/) know of? (12) A. No. ' (13) Q. Do you know if any of your advertisers have (14) attended teenage marketing seminars? (15) A. Not to my knowledge, anyone working with us. (16) Q. After you got your MBA, what was your first job? (17) A. RJ. Reynolds Tobacco Company? (18) Q. So you started with RJR? (19) A. Um•hmm. (20) Q. What was your capacity? (21) A. I was a marketing assistant. (22) Q. What does a marketing assistant do? (23) A. Mostly what your boss wants you to. It's the (24) entry level position, so it depends on what your boss (25) assigns you. Page 69 (1) You may work on budget. You may work on (2) production. You may work on media. You may work on (3) advertising. You know, it just depends an how the boss has (4) the responsibility structured. (Sy -Q. What did you do? (6) A. On Now? I remember working on production (7) estimates, the budget. I bad some involvement with (8) advertlsing. And I believe I also had some involvement with (9) product development. (10) Q. Stan with production estimates. Whst type of (11) work did you do with production estimates? (12) A. A production estimate Is when a job is being done (13) by the agency, like they're going to produce an ad, and they (14) send in an estimate of how much it will cost to produce that (IS) ad. And then I would review the estimate for did it seem (16) like the cost was reasonabie and had we approved the cost, (17) and sign off on it if we had. (18) Q. Which brands did you do that for? (19) A. I was working on the Now brand as marketing (20) assistant. (21) Q. Only the Now brand? (22) A. That's where I started. The Now brand. (23) Q. What about your duties with respect to the budget? (24) A. Just making sure that, you know, we'd have a (25) budget for the brand, how much had been spent against that Page 70 (1) budget, how much had we planned to spend against that (2) Tooker & Antz (41 j:392-0650 Page 66 to Page 71
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 5/29!97 extent that that covers (12) individuals under the age of 18. (13) MR. JANACEK: Q. So you - but you are (14) knowledgeable on that subject? (15) A. I've read outside research on it. (16) Q. Do you think there's someone at Reynolds that's (17) more knowledgeable on that subject than yourself? (18) A. Not that I know of. (19) Q. So even though you didn't know you were designated (20) on number 8, you think you are the person? (21) MS. BIXENSTINE: Objection. That's argumentative. (22) THE WITNESS: Our company policy Is to market to (23) adult smokers, and we only do research among adult smokers. (24) And that's the information people have at the company, so I(25) have no reason to believe anyone is more knowledgeable on Page 62 (1) that. (2) MR. JANACEK: Q. You've also been designated as (3) number 9, which is on the next page. (4) A. Um-hmm. (5) Q. The person most knowledgeable regarding the use of (6) Camel - the Camel brand to capture the young adult market (7) and the Marlboro smokers, strategies and methodologies. Do (8) you see that? (9) A. Yes, I do. (10) Q. Is there anyone that's more knowledgeable on that (11) topic than yourself? (12) A. No, (13) Q. You've also been designated as number 10, which is (14) the next one on that page. The sale of Camel cigarettes in (15) California. (16) MS. BIXENSTINE: And again, we objected on behalf (17) of Reynolds to the extent that that subject covers (18) individuals under the age of 18. - (19) MR. JANACEK: Q. Is there anyone at Reynolds (20) that's more knowledgeable than you about the sale of (21) cigarettes in California? (22) MS. BDCENSTINE: I believe that we also designated (23) Mr. Sanders on that subject, who is being deposed next (24) Tuesday. (25) MR. JANACEK: Q. Is that your testimony, Page 63 (1) Ms. Beasley? (2) A. It would either - depending on which one of these (3) A, B, C, D things, It would be Rick Sanders or I. (4) Q. And which ones would you be the most - the person (5) most knowledgeable on? (6) A. The market share of Camel. (7) Q. Which is which number? (8) A. C. You know, we don't have any information (9) about - not to my knowledge - the market share of Camel (10) cigarettes In California's major metropolitan areas. We (11) don't track that. (12) I don't know - I don't - so I would say on the (13) market share of Camel cigarettes, that would be the one I(14) would be most knowledgeable on. (15) Q. You said you don't track the sale of cigarettes in (16) the major metropolitan areas, or you don't know about it, (17) you don't know that? (18) A. We don't track that. (19) Q. You don't have any information on Reynolds - (20) you're convinced that Reynolds doesn't have any information (21) on the number of cigarettes sold, for example, in Los (22) Angeles? ' (23) A. What we track Is the - our shipments to (24) wholesalers and direct accounts. So there are - we sell (2S) cigarettes, we could find out if there were wholesalers in Page 64 (1) Los Angeles we sell cigarettes to. That doesn't mean (2) they're sold in Los Angeles. (3) We sell them to someone who's located in Los (4) Angeles. Then they can ship them any - to any whereever (5) their customers are. So it depends upon what you mean by (6) sold. If it's us selling cigarettes to a wholesaler or (7) direct account, we can tell you where their business is (8) located, and on that basis tell you how many cigarettes (9) we've sold there. (10) Q. That's not what sold I'm using. The sold I'm (11) using is how many Camel cigarettes are sold in Los Angeles (12) to retailers. (13) A. I cannot tell you that. (14) Q. Reynolds doesn't have any information on that? (15) A. What we have is a share of market tracking system (16) which is a sampling across the United States of retail (17) stores. So it's just a sample. (18) Q. So if the CEO asked you how many Camel cigarettes (19) are sold, how's the Los Angeles market doing, you wouldn't (20) be able to tell him? (21) A. No, in fact we cannot do that. We can, - we have (22) our share of market broken out by the regions our sales (23) force covers in the country. (24) Q. And you don't get any third•party vendor (.5) information are, like Nielsen or other tracking information, Page 65 (1) on how cigarette sales are doing across the country? (2) A. We don't have - we use our share of market (3) tracking system called Marlin, and there are third parties (4) who help us obtain that Information. But It's on a regional (S) basis, and R.J. Reynolds sales - sales regions basis. So (6) no, we do not have share. (7) And it's a sampling procedure. It is by no means (8) every retail store in the country. It is simply a sample of (9) retail stores. (10) Q. Well, now, I'm kind of confused. So you do have (11) information on cigarettes that are sold in a sampling of (12) retail stores in particular geographic regions? (13) A. In the 20 regions that RJR's sales force is (14) divided into. (13) 'Q. And but those - those third-party vendors don't (16) give you information on, you know, for example California? (17) A. They can't, because the database is set up and the (18) sampling procedure ia set up only to be accurate to the (19) level of our RJR sales regions. (20) Q. So other than Rick Sanders, there's no one that (21) knows more about the sale - or the market share of Camel (22) cigarettes in California? (23) A. No. (24) Q. Ms. Beasley, I'm going to start with your (25) background and education. Where did you go to high school? Page 66 (1) A. Richland Center, Wisconsin. (2) Q. And when was that? (3) A. I graduated in 1975. (4) Q. Did you go to college? (5) A. Yes. (6) Q. Where did you go to college? (7) 'A. At the University of Wisconsin Center Richland. (8) Q. When did you attend that university? (9) A. I don't have my resume out in front of me right (10) now, so I can't - I can't recall the exact graduation (11) date. It's a two-year school. I got associate degree (12) there, then went on to the University of Wisconsin In (13) Madison and achieved my bachelor's degree in finance in (14) 1981. And then I went on to get my MBA In marketing, my (15) master's degree. And I - that 0 Page 61 to Page 66 (413) 392-0650 Tooker & Antz 151-41 1+ 011 0_4 t%
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Lynn Beasley - 5129/97 htangini vs R.J. Reynolds BSA (18) A. It's many dimensions of taste. It's aftertaste, (19) it's tobacco taste, it's strength. There are many (20) attributes. (21) Q. What do you mean by strength? (22) A. Was it strong enough? Was it too strong for you? (23) Was it too light? (24) Q. Is that like the physical effects? (25) A. It's - it's defined by the person. We say Page 72 (1) strength. Tobacco - actually, we call It tobacco taste. I(2) don't remember the exact word of the attribute. It could be (3) tobacco taste. (4) Q. The product development is the physical (5) characteristics - or you know, the physical effects of the (6) cigarette something you look at? (7) A. Physical - (8) MS. BIXENSTINE: Objection. Vague. (9) THE WITNESS: I don't know what you mean. (10) MR. JANACEK: Q. Doesn't a cigarette engender (11) some physiological effects? (12) A. Like what do you mean? (13) Q. You know, whether you get a certain feeling if you (14) smoke? (15) A. We don't ask people if they get a certain feeling. (16) Q. Well, you're asking me what II mean. I'm telling (17) you. I'm asking you what you ask them. (18) A. We ask them the attributes of taste, as I outlined. (19) Q. Do you ask them how they - what the effects they (20) feel when they smoke? Does it calm them down? Does it pep (2 t) them up? (22) A. Calm them down? No, I don't recall that ever (23) being oa- (24) . Q. So you don't - (25) A. - our product questionnaires. Page 73 (1) Q. So you don't look at all at the effects of a (2) cigarette on the person? (3) MS. BIXENSTINE: Objection. Mischaracterizes the (4) witness' testimony. (5) THE WITNESS: What we look at is, again, as I(6) said, the - the how much 3mokers-enjoy t#t¢ tast"f-tfie-(7) product and the taste attributes of the product. (8) MR. JANACEK: Q. What are the taste attributes? (9) Maybe we'll go at it that way. (10) A. There are five or six aftertaste dimensions. (11) There's tobacco taste, there's smoothness, there's (12) harshness, there's overall - overall taste. (13) Q. Are there any other attributes you look at? (14) A. There are other taste attributes. (15) Q. Besides - (16) A. It depends on the test. (17) Q. Besides taste, other attributes other than taste (18) that you look at? (19) A. Those are the ones we measure among consumers when (20) we're testing them, are those taste attributes. (21) Q. Only taste attributes? (22) A. Those are the only ones I recall. (23) Q. After you were a marketing assistant at Now, what (24) was your next position? (25) A. Do you have my resume? Because it's sort of hard Page 74 (1) for me to remember each position. Do they have it? (2) Q. No. (3) A. Okay. All right. I'll try as best I can to (4) recall. I've had a lot of positions. (5) Q. Um-hmm. (6) A. I belleve my next position was assistant marketing (7) manager, or else marketing assistant - marketing assistant, (8) assistant marketing manager on the Salem brand. (9) Q. And when was that Salem? (t0) A. I would say - now, without having my resume here (11) In front of me, you're going to ask me when dates (12) constantly, I don't have them memorized. But what I can say (13) Is I normally held a position for six months, a year, a year (14) and a half, something like that. (aS) Q. So that would have been within the year - the (16) year after you started at RJR? (17) A. Yeah, I think it was probably less than a year (l8) when I was moved to Salem, but I can't be sure of that. (19) Q. And what were your duties when you were moved to (20) Salem? (21) A. Similar duties to Now. (22) Q. And that's a different title, though. Is there (23) any - what's the difference between the two titlea? (24) A. Marketing assistant, assistant brand manager? (25) You've been there long enough that you have more experience, Page 75 (1) you've demonstrated that you can handle projects and so you (2) get promoted. (3) Q.'But functionally, the job's the same? (4) A. You might have - It depends on what brand you're (S) assigned to and what responsibilities your boss gives you. (6) Again, it depends upon how big the brand Is, how many people (7) are assigned to It. There's no set, specific, these are the (8) accountabilities, the specific things you work on as a (9) marketing assistant or assistant brand manager. (t0) Q. Were your duties when you were moved to Salem (11) similar to those when you were the marketing assistant at - (12) for Now? (13) A. Similar, but more responsibility. I think when I(14) was on Salem I was probably the person in charge of tracking (15) the budget as opposed to reporting to someone who (16) approved - reviewed what I did. (17) Q. Was there anything that you were doing for Salem (18) that you hadn't done for Now? (19) A. I think when I was on Salem that I was involved (20) with selecting media, also. (21) Q. After Salem where did you go? (22) A. I think I went to the More brand next. (23) Q. And again, that would have beeti six months to a (24) year later? (25) A. I think so.__ Page 76 (1) Q. What was your title when you were at - with the (2) More brand? (3) A. I think It was also assistant marketing manager. (4) Q. Were your duties similar to those as when you were (5) the assistant marketing manager for Salem? (6) A. Right. (7) Q. Was there any additional duties that you -(8) something that you'd done with the More brand that you (9) hadn't done with the Salem brand? (lo) A. I think on More that I worked with the advertising (11) agency more often. (12) Q. What type of work? (13) A. Developing ads for the More brand. (14) Q. Anything else? (15) A. Similar kind of stuff as the other brands, yes. (16) Q. Right. But I'm talking about that would not be (17) similar to what you'd been doing. (18) A. I don't remember anything, else. (19) Q. After More, which - what was your next promotion? (20) A. I believe next I went to become brand manager of (21) Century. I , Page 71 to Page 76 (415) 392-0630 Tooker & Antz 51-1) ~ aI ~ r~ .
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;::1 Q. And what were your duties as a brand manager of (23) Century? (2s) A. I was responsible for the overall brand. The (25) strategies, the - Page 77 ( I ) Q. So that's - (2) A. - spending. You know, I was the brand manager. (3) Q. So now your duties had significantly changed when (4) you were - (5) A. Yes. That's correct. (6) Q. Can you briefly describe for me the duties as a (7) brand manager? (8) A. Your duties are - as a brand manager are to - (9) you're responsible In essence for the profitability of the (10) brand, the market share of the brand, the strategies for the (11) brand, the positioning of the brand, the budget, how the (12) budget is allocated; responsible for overseeing the (13) implementation of the - all programs for the brand. (14) Q. Anythingelse? (15) A. No. And when I say responsible for, I mean (16) obviously goals are set higher up than the brand manager, (17) and there's a negotiation process. But you're involved with (18) that. I don't mean you have the final say. (19) Q. Do you know when you became the brand manager for (20) Century, approximately? (21) A. Well, I don't recall the date. You know, it's (22) each job was about let's say roughly a year. So maybe it (23) was 1984 maybe? (24) MR. JANACEK: Kim, maybe you can provide us with a (25) CV. We'll concentrate on the dates that way. Page 78 (1) MS. BIXENSTINE: We'll do that. (2) MR. JANACEK: Okay. (3) Q. After Century, what was your next position? (4) A. Well, while I was on Century, I also picked up (5) responsibility I believe for Doral, Magna, Sterling. (6) Century, Dora), Magna, Sterling. I think those were the (7) brands. • (8) Q. Would your duties have been the same with respect (9) to Century, the - (10) A. Yes, um-hmm. (11) Q. Any other duties associated with any of those (12) three cigarette brands that you identified? (13) A. That were different, you mean? (14) Q. That were different than your responsibilities (15) with Century? () 6) A. I don't believe so. (17) Q. After, what was your next position? (18) A. I believe my next position then - oh, okay. I(19) obviously missed a position. I remember now. (20) Q. Okay. (21) A. I'm sorry. (22) MS. BIXENSTINE: That's okay. (23) THE WITNESS: I don't have the CV in front of ine. (24) MR. JANACEK: Q. Not a problem. (25) A. I worked on - I was an assistant on - a Page 79 (1) marketing assistant on Now. I was an assistant on Salem. I(2) was an assistant on the Camel brand. And I was an assistant (3) on the More brand, I believe. And I don't know those exact (4) dates. (S) Q. But you would have been an assistant on Camel (6) before becoming brand manager of Century? (7) A. Yes, I was. I left that out. I didn't mean to. (8) Q. Okay, And what - what were your responsibilities (9) as an assistant on the Camel brand? Similar to what you (10) just testified to? (11) A. On the Camel brand I worked primarily on (12) promotions. (13) Q. Anything else that would have been different than (14) what you've already testified to? (15) A. I worked primarily on promotiens on the Camel (16) brand. (17) Q. Do you know - (18) A. When I was an assistant. (19) Q. Right. Do you know approximately when you were an (20) assistant on the Camel brand? (21) A. In - I think It was late '84, early '85. (22) Q. Was it before the Joe Camel advertising campaign? (23) A. Yes. That was not until 1988, obviously. (24) Q. Was it before Camel started - or Reynolds began (25) considering the Joe Camel advertising campaign? Page 80 (1) A. At the time I was on the brand we were running (2) the - we called It the Bob Beck campaign, because the man's (3) name who was the key model in the campaign was called Bob (4) Beck. Where a Man Belongs, that was the campaign Camel was (5) running. (6) Q. So that was the current campaign. Was Camel (7) considering switching campaigns at that time? (8) A. They were looking for - not switching campaigns, (9) but for supplemental campaigns. (10> Q. What do you mean by a I supplemenul campaitn? (11) A. Sometimes you haVe more than one campaign on a(l:) brand. (13) Q. Do,vou know if they were looking at the Joe Camel (14) character or icon, the figure, to be a supplemental brand - (IS) or supplemental campaign? (16) A. I found out recently, because of the FTC (17) investigation, it was a document they pulled and asked me (18) about, there were focus groups done in 1985 where the Camel (19) brand was exploring alternative supplemental campaigns, and (20) executions of the French Camel poster were shown to focus (21) groups. (22) Q. In 1985? (23) A. Um•hmm. I wasn't aware of that. I wasn't aware (24) of it until recently because of the FTC investigation. (25) Q. In this - well, presently, do you have an - -y -- -- - Page 81 (1) information as to when R.J. Reynolds Tobacco Company began (2) investigating the Joe Camel icon? (3) A. I know exactly when we did. It was my idea. (4) Q. What date? (5) A. It was - I was assigned as senior brand manager (6) of Camel in June of 1987. (7) Q. But you just said that they had done focus groups (8) on the French Camel. which is - (9) A. That was not the Joe Camel campaign. They had (10) taken some executions of the French Camel poster and done (11) three versions of it and shown it to focus groups along with (12) a bunch of other executions that - that they did not pursue (13) further. (14) Q. So you draw a distinction between the French Camel (1S) and Joe Camel? (16) A. Yes. v, (17) Q. It's a different camel in your ~ mind? ~ r (18) A. Yes. 19h. (19) Q. Do you know when they first - R.J. Reynolds first (20) began considering the French Camel for its domestic tobacco? (21) A. Considering it for what? (22) Q. First began considering using it as a supplemental (23) campaign or a full-blown eampaign, just started looking at (24) the French Camel. (25) A. You know, I don't know. But to my knowledge, and Page 82 (1) like I said, I didn't know about it N ~ m ko Tooker & Antz (4151392•0650 Page 76 to Page 82
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35. Mangini vs R.J. Keynolds Lynn I3easley • 5;:9!97 others. I'm not (3) saying there couldn't have been, but I don't remember. (4) Q. Well, I assume, then, if you can't remember what (5) happened a week and a half ago, anything you did see would (6) have refreshed your recollection of events that occurred in (7) the past. (8) A. Tbat - (9) MS. BIXENSTINE: Objection. Argumentative. (10) If you understand the question, you can answer. (1 t) THE WITNESS: Could you - (12) MS. BIXENSTINE: I don't think it was a question. (13) THE WITNESS: Could you say it again? (14) MR. JANACEK: Q. My question is. I mean at this (15) point in time you're testifying that you can't remember (16) generally what types of documents you saw a week and a half, (I7) two weeks ago. (18) My question to you is, if that's the case, then it (19) would be my understanding, and my question to you is, was it (20) true that the documents you saw refresh - refreshed your (21) recollection as to the events of the past? (22) MS. BD{ENSTINE: Objection. It assumes that she (23) was involved in the events of the past. (24) THE WITNESS: I - I didn't say I didn't generally (25) remember the documents. I said I did. I think that was the Page 36 (i) first part of your statement. I think you mischaracterized (2) what I said before. (3) MR. JANACEK: Q. No, you testified that the only (4) one you can generally remember the topic of the document was (5) this McCann-Erickson one. (6) MS. BIXENSTINE: Objection. (7) THE WITNESS: The ones that you said refreshed my (8) memory on documents I had seen. That's what you asked me (9) specifically, documents I•. was shown that refresh my memory (10) and I had seen them before. And I told you the one I(11) recalled seeing. (12) MR: JANACEK: Q. And so your testimony - let me (13) get your testimony straight. Is your testimony that the (14) other documents that you saw did not refresh - refresh your (15) recollection? (l6) A. I don't - I don't remember any others that did. (17) Q. And so all of the other documents other than this (18) i McCann-Erickson document were discussing events and (t9) happenings that you weren't aware of at any point in time? (20) A. To the best of my memory. (21) Q. So they were all - it was all brand new to you? (22) A. To the best - L (23) MS. BIXENSTINE: Objection. Argumentative. Go (24) ahead. (25) THE WITNESS: To the best of my memory.. Page 37 (1) MR. JANACEK: Q. And the only document - just to (2) get this straight, the only document - document you (3) remember seeing that involved something that you had heard (4) of, seen or known before was this McCann-Erickson document? (5) A. That's the only one I remember. (6) Q. Okay. When you looked at these documents, who was (7) present? (8) A. Kim and I. (9) Q. Just you and Kim? (10) A. (Witness nods head.) (11) Q. No one else from R.J. Reynolds Tobacco Company? (12) A. No. (13) Q. No one at McCann-Erickson? (14) A. No. (IS) Q. All right. Ms. Beasley, I'm going to hand you a(t6) document which I'll have the court reporter mark as (17) Plaintiff s Exhibit 18. (18) (Exhibit 18 marked.) (19) MR. JANACEK: Q. Do you remember seeing this (20) document before today? (21) A. Yes. (22) Q. But you didn't remember that before I showed it to (23) you? Correct? (24) A. I didn't say that. (25) Q. Well, we just talked about all of the documents ~ Page 38 (1) that you specifically remembered seeing. (2) A. No. The ones that refresh my memory of documents (3) from - that I had previously seen. That's what we`vere (4) discussing. Until it was shown to me, I hadn't previously (5) seeo it. (6) Q. Ms. Beasiey, did you look at any of the pleadings (7) in this case prior to your deposition? Pleadings are (8) documents like this, with the numbers down the side (9) (indicating). (10) A. You mean like - would that be like the (11) complaint? Is that what you're saying? (12) Q. The complaint, any briefs that were filed. (13) A. I read the complaint. (14) Q. Did you look at your previous declarations? (15) A. For this case, you mean? (t6) Q. For any case. (17) A. I looked at my - I believe I - in preparation (18) for this case, I did not look at it. But I have looked at (19) it in the past, I don't know, year. (20) Q. But you didn't look at it, that wasn't one of the (21) documents you saw - (22) A. Preparing for this deposition? (23) Q. Correct. (24) A. No. (25) Q. Within the past year, when you looked at your Page 39 (1) deposition - your declarations, why were you looking at (2) your declarations? (3) A. Because I was preparing for a deposition that (4) didn't happen. (5) Q. A different deposition? (6) A. Um-hmm. (7) Q. Do you know which ease that deposition was going (8) to be taken in? (9) A. I think it was the Moore case, I think maybe. (10) Q. What about any other pleadings? Did you look at (11) the complaint in this case? (12) MS. BIXENSTINE: Objection. Asked and answered. (13) THE WITNESS: Right. I looked at the complaint. (14) MR. JANACEK: Q. You did look at the complaint in (15) this case? (16) A. YRs. (17) Q. When did you look at that? (18) A. I think that would have been a couple weeks ago, (19) also. (20) Q. Did you look at any other documents from this (21) case? Along the lines of complaints, declarations, briefs? (22) A. I think the complaint and thts document. That's (23) what I recall. (24) Q. Before you looked at that document in the last (25) couple of weeks, had you seen that document before? Page 40 . (I) A. Yes. (2) Q. And the document we're talking about is (3) Plaintiff's Exhibit 18, which is the Notice of Deposition of (4) Persons Most Knowledgeable at R.J. Reynolds Tobacco Company. (5) A. Right. (6) Q. Ms. Beasley, you've been designated as the persons (7) most knowledgeable at R.J. Reynolds Tobacco Company on (8) several subjects. (9) A. Yes. tn N J N ~ N 1~~+ t9 tn Tooker & Antz (415),392-0650 Page 35 to Page 40
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%7) Q. You don't remember generally things that happened (8) after a week or two? (9) A. Yes, I remember generally things that bave (10) happened after a week or two. (11) Q. And so you generally looked at some documenu a (12) week and a half ago. two weeks ago? (13) A. Yes. (14) Q. Okay. How many documents did you look at? (15) A. I don't know. Maybe - (16) Q. Is it hundreds? (17) A. Oh, no. (18) Q. Was it, you know, one or two? (19) A. I would say probably less than 10. (20) Q. Less than 10? (21) A. Um-hmm. (22) Q. And you just - you just don't remember two weeks (23) later if some of those documents were not R.J. Reynolds (24) Tobacco documents? (25) MS. BIXENSTINE: Objection. Asked and answered. Page 25 (1) THE WITNESS: I just don't recall. (2) MR. JANACEK: Q. Did counsel - excuse me. (3) Strike that. (4) Were there any documents that you specifically (5) identified as not being R.J. Reynolds Tobacco Company (6) documents? (7) A. Specifically identified to who? (8) Q. To yourself. (9) A. No, I don't recall doing that. (10) Q. You don't remember seeing any document where you (11) said 'This isn't R.J. Reynolds Tobacco Company'? (12) A. I don't recall doing that. (13) Q. Before you were shown - were you thinking of that (14) type of a document in preparation for your deposition before (lS) you were shown them? (16) MS. BIXENSTINE: Objection. Vague. (17) THE WITNESS: What- what do you mean? (18) MR. JANACEK: Q. Had you seen those documents (19) before? The documents you were shown? . (20) A. No, I don't believe so. (21) Q. Okay. So they were all documents that you had (22) never seen before? (23) A. I - I'm not going to say for sure that's true. I(24) think that's true. (25) Q. Did the documents, the information on the Page 26 (1) documents generally reflect facts and information that you (2) were aware or (3) A. You know, I- I just don't recall. I don't (4) recall all the specifics. (5) Q. I tell you what, why don't you tell me what you do (6) recall about the documents. (7) MS. BIXENSTINE: Objection. (8) MR. JANACEK: Q. Go ahead. - You can answer. (9) " MS. BIXENSTINE: I object. This is getting into (10) work product, so I'm instructing her not to answer. Because (11) I told - I've told that you our position is that it's well (12) established that documents that are shown to a witness by (13) counsel in preparation for a deposition reflect coutuel's (14) mental impressions about what is relevant to the case, (15) what's important to the case. I - if you are asking her (16) about what she recalls about the documenu, you are getting (17) into my mental impressions or impressions of other counsel, (18) and I'm instructing her not to answer. (19) MR. JANACEK: Q. What types of documents did you (20) see? (21) MS. BIXENSTINE: Objection. (22) MR. JANACEK: Q. I don't want to know the (23) specific documents. I want to know what types of documenu (24) you saw. Were they marketing documents? '(23) MS. BIXENSTINE: Excuse me. I need to confer with f Page 27 (1) California counsel. (2) MR. JANACEK: You can answer? (3) MS. BIXENSTINE: Yes. (4) THE WITNESS: What do you mean by marketing (5) documents? (6) MR. JANACEK: Q. What types of documents did you (7) see? You tell me. (8) A. There were - I think there was a document that an (9) advertising agency bad written. I think there was one maybe (10) that was market research. (11) You know, I- I don't - I just don't recall all (12) the specifics. (13) Q. Do you recall which advertising agqncy? (14) MS. BIXENSTINE: I object. Now we're getting too (15) far along into work product. (16) You can testify generally as to types of documents (17) and not get into any specifics. (18) MR. JANACEK: For the record, Kim, we'll be (19) seeking sanctions for this, as well. (20) MS. BIXENSTINE: Frank, perhaps we could go off (21) the record and Ms. Johann can show you the case law on this. I t-2t MR. JANACEK: I w•ould rather do this on the (231 record. (24) MS. BIXENSTINE: Okay. Well. I don't think that (25) it's sinctionable. and I think that we're on good grounds. Page 28 (1) and that the law is that this is work product. (2) MR. JANACEK: That's fine. I'm just letting you (3) know that we will be seeking sanctions. (4) Q. Generally, what do you recall about the (5) documents? Generally, which advertising agencies? (6) ' MS. BDtENSTINE: Objection. I instruct you not to (7) answer. (8) MR. JANACEK: Q. So you can't tell if the (9) advertising agencies were agencies that were employed by (10) R.J. Reynolds Tobacco Company? (t 1) MS. BIXENSTWE: Objection. The reason I'm (12) instructing her not to answer is that it's work product. (13) MR. JANACEK: Are you instructing her not to (14) answer whether or not the agencies were Reynolds Tobacco (15) Company advertising agencies? That's work product? (16) MS. BIXENSTINE: You're getting into what the (17) documents are that I showed her or that co-counsel showed (18) her. (19) MR. JANACEK: That's work product? (20) MS. BIXENSTINE: Yes. The documents that I showed (21) her reflect my mental impressions. (22) MR. JANACEK: You wrote - you wrote them, hmm. (23) Kim? (24) MS. BIXENSTINE: The selection of the documents (25) reveals my determination of what is relevant or important to Page 29 (1) the case. That's opinion work product. ~ N ~ ~ (2) MR. JANACEK: So these are documents you used to (3) kind of ~ coach her along with respect to what you thought (4) this deposition should be like? (S) MS. BIXENSTINE: The documents that I showed her (6) in preparation for the deposition reflect opinion work (7) product. That's my position. (8) MR. JANACEK: The documents also reflect the (9) events that transpired at R.J. Reynolds Tobacco Company. (t0) MS. BIXENSTINE: You can ask her about events that (11) transpired. (12) MR. JANACEK: Q. Did the documents you saw (13) reflect events that transpired at R.J. Reynolds Tobacco (14) Company? (lS) A. Events? Tooker & Antz (41s`,392-0650 Page 24 to Page 29
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f 10) Q. What about you personally'' Were you in charge of (11) certain brands and then someone else was in charge of other (12) brands? (13) A. No. no. I was the person in charge of direct - I(14) was the director of special markets. ()S) Q. After you were the director of special markets. (16) did your title change? (17) A. What do you mean? ( I8) Q. What was your next promotion or step? (19) A. I became vice president of strategic marketing (20) planning, I believe it was called. (21) Q. And what does a vice president of strategic (22) marketing planning do? (23) A. I looked at our - obviously strategic plan and (24) the company's strategies; worked some with the corporate (25) planning group on our corporate strategies; worked some on Page 88 (I) new brands, that sort of thing. (:) Q. Was this also a new position? Or had there been a (3) strategic marketing planning - (4) A. There had - well, I think there had been, yes. (5) Q. Do you know who was on the strategic marketing and (6) planning - is it a group or a division or a department? (7) A. It was kind of created I believe - I'm not really (8) sure - at the same time I became director of special (9) markets, my boss became a vice president I believe of (10) strategic marketing. ( l() Q. Who would that have been? David lauco? (12) A. No. Larry Hall. (13) Q. So that strategic marketing was created about the (14) same time as the special markets? (15) A. I think it was the same time. (16) Q. And you don't think it predated the special (17) markets? ( I 8) A. No. No, I don't believe so. (19) Q. What was your next position? (20) A. Then I took over as vice president of Winston. " (21) Q. And is that your current position? (22) A. No. (23) Q. As a VP of Winston, what were your - other than (24) the duties that you've testified about, were there (25) additional duties? Page 89 (1) A. Additional to what? What are you - (2) Q. For example, when you were the brand - or the (3) senior brand ' manager for Camel. how did the duties differ as (4) a vice president at Winston? (5) A. Pretty similar. (6) . Q. Anything that you would have been doing as a vice (7) president that you didn't do as a senior brand manager? (8) A. I don't know. I reall~didn't - can't recall (9) any. ( l0) Q. Then after Winston, what was your next step? (11) A. Then I believe I became senior vice president of (12) Winston and Camel. (13) Q. When was that? (14) A. I don't have It in front of ine. I don't recall. (1S) Q. Do you remember an approximate year? (16) A. I don't bave it in front of me. I don't recall. (17) Q. What was your responsibilities with respect to (18) senior vice president of now two brands, Winston and Camel? (19) A. To oversee both brands. To oversee the marketing (20) of both brands. (21) Q. Would you now have been responsible for the (22) planning of the brands? (23) A. What do you mean, the planning? (24) Q. Strategic planning, where the brand is going? (25) A.,Sure, yes. Page 90 (1) Q. Would you have been that- doing that as a senior (2) brand manager? (3) A. Yes. (4) Q. Would there have been any other duties that were (5) associated with being a senior vice president that wouldn't (6) have been associated with being a vice president? (7) A. I had obviously more responsibility, but - (8) Q. Same type of work, just more responsibility? (9) A. Same - I believe that's a fair characterization. (10) Q. Okay. •After senior vice president? (11) A. I then picked up responsibility for the Salem (12) brand, also. So Winston, Camel and Salem. (13) Q. Did you have another position after that? (14) A. I'm still senior vice president, if that's what (IS) you're asking me. But I have also picked up responsibility (16) for Vantage, More and Now. (17) Q. So now it's Winston. Salem, Camel - (M A. Camel. Vantage. %lore and \ ow. (19) Q. And that's your :urrent position? (20) A. Yes. (21) MS. BIXENSTINE: Can we take a break now? (22) MR. JANACEK: Yes. (23) MS. BIXENSTINE: Thank you. (24) MR. JANACEK: Five mir.utes? (25) MS. BIXENSTINE: Ten. Page 91 (1) THE VIDEOGRAPHER: This marks the end of Tape No. (2) 1 in the continuing deposition of Lynn Beasley. We're off (3) the record at 10:52 a.m. (4) (Brief recess in proceedings 10:52 to 11:10 am.) (5) THE VIDEOGRAPHER: We're back on the record at (6) 11:10 a.m. This marks the beginning of Videotape No. 2 of (7) the deposition of Lynn Beasley on May 29th, 1997. at 222 (8) Kearny Street, loth floor. San Francisco. California. The (9) video operator is Steve Leftwich with Barbagelata and (10) Associates. 63 Bovet Road, Suite 410, San Mateo, California. (11) MR. JANACEK: Q. Ms. Beasley, do you believe in (12) advertising? (13) MS. BIXENSTINE: Objection. Vague. (14) THE WITNESS: What do you mean by that? (1S) MR. JANACEK: Q. Do you think it works? (16) MS. BIXENSTINE: Objection. Vague. (17) THE WITNESS: In what regard? (18) MR. JANACEK: Q. Do you think it accomplishes its (19) purposes? (20) A. Sometimes. Sometimes it doesn't. (2l) Q. So what are you trying to accomplish through (22) advertising? (23) MS. BIXENSTINE: Objection. Are you talking about (24) cigarette advertising? (25) MR. JANACEK: Advertising in general. Page 92 (I) MS. BIXENSTINE: Objection. Calls for speculation (2) to the extent that you're going beyond cigarette (3) advertising. (4) MR. JANACEK: Q. You can answer. (5) A. What was the question? (6) Q. What are the goals of advertising? (7) A. I can speak to the goal of cigarette advertising. (8) Q. Okay. Let's start with cigarette advertising. (9) A. For cigarette advertising, our Ln r+ ~ ~ ~ t~) ~ ~ m Tooker & Antz (41S1392-0650 Page 87 to Page 92
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(2 1) r>. No. (22) Q. You didn't talk with your secretary or anyone at (23) R.J. Reynolds Tobacco Company? (24) A. No. (25) Q. You're just coming in here without having spoken Page 14 (1) to anyone about this? (2) A. Today I have not spoken to anyone. (3) Q. I'm talking about before today. (4) A. Before today, yes. (S) Q. Okay. Who have you talked to about your (6) deposition? (7) A. Kim Bixenstine and Pam, . sitting next to her. And (8) Joe Escher. (9) Q. Anyone else? Anyone at Reynolds? (10) A. No. (11) Q. Husband? Friends? (12) A. My husband knows I'm doing it. (13) Q. Did you talk to him - how does he know that (14) you're doing the deposition? (15) MS. BIXENSTINE: Objection. You can answer the (16) question if you understand it. (17) THE WITNESS: He - I- he needs to know where (18) I'm suying, so we can talk. (19) MR. JANACEK: Q. So you told him that you were (20) going to a deposition? (21) A. Here. Yes. (22) Q. And did you tell him it was for a deposition? (23) A. Yes. (24) Q. And did you talk about what the deposition was (25) about? Page 15 (1) A. No. (2) Q. So the sum and substance of your conversations (3) with your husband about the deposition was that you'd be in (4) San Francisco for a certain period of time? (5) A. Right. (6) Q. Besides your husband, have you talked with anyone (7) at R.J. Reynolds Tobacco Company about your deposition? (8) MS. BIXENSTINE: Objection. Asked and answered. (9) THE WITNESS: No. (10) MR. JANACEK: Q. You didn't let your secretary (11) know that you were going to be out here for this period of (12) time? (13) A. She scheduled the trip for me. (14) Q. And no employees or bosses asked if you'd be in (1S) town or out of town? You didn't tell them where you'd be? (16) A. I didn't discuss the deposition with anyone. I(17) let people know I'll be out of town. (18) Q. But they don't know why you're here? (19) A. They may or may not. I don't know. (20) Q. You didn't tell them? (2 t) A. I - I haven't talked to them about It. (22) Q. All right. Is there anyone else that you've (23) spoken to about your deposition? (24) A. No. (25) Q. Did you look at any documents in preparation for Page 16 (1) the taking of your deposition? (2) A. Yes. (3) Q. What documents did you look at? (4) MS. BIXENSTINE: I object to Ms. Beasley talking (5) about any documenu that counsel showed her in preparation (6) for the deposition on work product grounds. And I would (7) instruct her not to reveal any documents that I or other (8) counsel showed her in the preparation for the deposition (9) except to the extent that it refreshed her recollection. (10) MR. JANACEK: And we have this discussion (11) yesterday. (12) MS. BIXENSTINE: And I have again looked at the (13) law and confirteld that my understanding of the law is (1d) accurate, and so - (15) MR. JANACEK: And we also - (16) MS. BIXENSTINE: - I will instruct her not to (17) answer except to the extent that any documents refreshed her (18) recollection. (19) MR. JANACEK: We had this discussion yesterday (20) with respect to mark Morrissey. The objection was stated (21) and be was petmined to answer subject to - to the (22) objection. Is that the same position you're taking - (23) MS. BDCENSTINE: No. (24) MR. JANACEK: - or you're instructing her. (25) " MS. BIXENSTINE: I'm instructing her not to answer Page.17 (1) except to the extent that any documents refreshed her (2) recollection. (3) MR. JANACEK: We also had this discussion with (4) respect to, the deposition of David lauco where it was (5) determined by counsel that any documenu that were shown to (6) a witness in preparation for a deposition are not protected (7) by the work product for. For counsel - just let me i finish. (8) For counsel to take this position at this point in (9) time is unreasonable. We will be moving to compel. And to (10) the extent that any documents that you saw in preparation (11) for your deposition, i.e., to come here to take your (12) deposition, you need to answer those questions. (13) MS. BDCENSTINE: Let me say on the record, number (14) one, that I be)ieve counsel's statement about what counsel (15) determined at the lauco deposition misstates what was (16) determined at that time. And I have confirmed the law, and (17) I feel that I'm on good ground. (18) If you want to move to compel, that's fine. (19) I am Ms. Beasley's counsel and I'm instructing her (20) not to answer with respect to documents that counsel showed (21) her in preparation for the deposition as it reveals my (22) mental impressions or other counsel's mental impressions. (23) It's clearly work product, and except to the extent that it (24) refreshed her recollection I'm instructing her not to (25) answer. And I trust she'll follow that instruction. Page 18 (1) MR. JANACEK: All right. The deposition will (2) continue with the other areas of the deposition, suspended (3) with respect to this issue. So we will need to bring Lynn (4) Beasiey back to the extent the motion to compel is granted (5) regardless of anything else that happens. (6) Q. Ms. Beasley, what documents - what documents did (7) you look at prior to your deposition? (8) A. What do you mean? (9) Q. Did you look at any documents for your deposition (10) today? (11) A. To prepare for the deposition, you mean? (12) Q. Right. (13) A. Other than what Kim - (14) Q. I just want - did you look at documents? A yes (15) or no question. (16) A. Yes. (17) Q. Starting with documents that were not provided to (IB) you by counsel, did you look at any documents in preparation (l9) for your deposition? (20) A. No. (21) Q. I see. With respect to documents that were (22) provided to you by counsel, were any much those documents (23) R.J. Reynolds Tobacco Company documents? (24) A. Yes. (25) Q. Okay. With respect to the documents that you were Page 13 to Page 18 Tooker & Antz (4F`) 392-0650 51714 2103
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11) Q. You've never heard that term before at Reynolds? (5) A. No. (6) Q. You've never heard the term learning smokers? (7) A. No. (8) Q. What do you call someone that is experimenting (9) with cigarettes? Someone that hasn't become a regular (t0) smoker. (11) A. Someone experimenting with cigarettes. (12) Now, I just want to clarify on my last - can 1(13) speak or - I just want to clarify on my last answer. (14) I had not beard of any of these terms until I was (15) preparing last week for the FTC thing. It's not that I (16) beard them at Reynolds, but the FTC investigation brought (17) out these terms in old documents. (18) Q. So you've seen them before, but it wasn't until - (19) A. It was during this whole investigation. I didn't (20) see them at Reynolds. I saw them as part of the FTG(2l) investigation. They brought them up. (22) And I told them the same thing. I had not been (23) exposed to those terms. (24) Q. What do you call someone that has decided to smoke (25) but hasn't yet begun to smoke? Page 57 ( t) A. Decided to smoke and not begun to smoke. I don't (2) know what that means. (3) Q. So if someone's decided they're going to purchase (4) cigarettes and smoke cigarettes but have never done it (5) before. (6) A. That doesn't make sense to me. (7) Q. You don't think that people have to decide to (8) smoke before they buy a pack of cigarettes? (9) A. I mean I don't know. It doesn't make sense to me (10) that you would decide to smoke but you haven't bought (11) cigarettes? What, that you got them from somebody else or (12)4omething? (13) Q. Someone's got a - someone that hasn't - that's (14) decided to smoke but hasn't smoked a cigarette yet. (15) A. I don't know if there is anyone like that. I have (16) no information on that and I don't have any term for them. (t7) Q. Let me get this straight. I guess - so I guess (18) smoking is genetic or something? You're born as a smoker or (19) not a smoker? (20) MS. BIXENSTINE: Objection. That's argumentative. (21) THE WITNESS: I didn't say that. This is - what (22) I said was I have no experience with an individual in that (23) process. (24) We only do research amongst smokers. They are (25) daily smokers. They are adult smokers. Those are the Page 58 (1) people I am familiar with. (2) MR. JANACEK: Q. I didn't ask you for your (3) experience. I asked you for a label or a term. What would (4) you call those types of people? (5) MS. BIXENSTINE: Objection. Asked and answered. (6) THE WITNESS: I don't have one. (7) MR. JANACEK: Q. You don't know? (8) A. I don't have one. (9) Q. What would - well, make one up. What would you (10) call them? (11) MS. BIXENSTINE: Objection. Calls for (12) speculation. (13) THE WITNESS: I have no idea what you would call (14) them. (15) MR. JANACEK: Q. You couldn't contemplate, you (16) wouldn't call them a presmoker, an experimenter? Or - you (17) just- (18) A. No. (19) Q. It would be completely foreign to you? (20) A. I have no - I have no experiev,ie with that at (21) all. I work with smokers. (22) Q. Do you have experience in labeling something you (23) hadn't seen before? (24) A. Labeling something I haven't seen before. (25) Q. Take a mindset. You've seen the trend of ' Page 59 (1) something in a - there's a particular mindset that doesn't (2) have a name yet. It's a new one and you wouldn't be able to (3) call it something. (4) A. I don't normally do that. Obviously, we look at a(S) lot of trend research that's done, and mindset research, but (6) I'm not ustially the one putting a label on it. (7) Q. No, I'm not asking if you've done it in the past. (8) I'm asking if you would have the ability to do it. (9) MS. BIXENSTINE: Objection. Calls for (10) speculation. (t t) THE WITNESS: I - I don't know. (12) MR. JANACEK: Q. You don't know if you could do (13) that? (14) A. I don't. (IS) Q. Did you name - do you have kids? (16) A. I don't have children of my own. (17) Q. But I guess if you do. you'll le: your husband (l81 name your child? (19) MS. BIXENSTINE: Objection. Frank, ask legitimate (20) questions. Don't badger the witness. That's totally (21) inappropriate. (22) MR. JANACEK: I'm just trying to figure out if (23) she's - (24) MS. BIXENSTINE: She's answered your questions. (25) MR. JANACEK: I'm just asking her, if she's got Page 60 (1) abiliry to name something, and she doesn't know if she does. (2) MS. BIXENSTINE: You're badgering the witness. (3) Cut it out. (4) MR. JANACEK: Q. You can answer. (5) A. What was the question? (6) Q. If you did have ehildren, would you I guess let (7) your husband name them? (8) MS. BIXENSTINE: Objection. That - that is a (9) ridiculous question. (t0) THE WITNESS: You know, my husband and I do not (11) plan to have children. (12) MR. JANACEK: Q. You've also been designated as (13) the person most knowledgeable - this is category number 8, (14) the last one on the page Ln - as when and why new smokers (IS) -4 begin to smoke. ' ' ~ (16) A. I have no idea about when and why - NJ (17) MS. BIXENSTINE: I don't think s~ she was designated (18) on that. ~ (19) THE WITNESS: -new smokers begin to smoke. (20) MR. JANACEK: Q. If you look at Exhibit 2, do you (21) see your name there? (22) A. Yes, I do. (23) Q. And do you see that you're designated on category (24) number 8? (25) A. 8. H, it says. Or that's I guess 6 (e) through Page 61 (1) (h). Is this 8 down here, persons most - that's 8? (2) Q. That's 8. (3) A. I don't know why. Obviously I've read outside (4) research, but I have not done any research of my own. (5) Q. But you do have some information on when and why (6) people begin to smoke? (7) A. I - I have read outside research on why smokers (8) begin to smoke. Yes, I have. Um-hmm. (9) MS. BIXENSTINE: I also note for the record that (10) in the same letter dated April 23rd, 1997, with - that we (11) objected to subject number 8 to the Tooker & Antz (415}392-0650 Page 56 to Page 61
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BSA Mangini vs R.J. Reynolds goal is to maintain (10) brand loyalty and - (11) Q. I'm sorry. I didn't mean to interrupt you. I(12) don't want Reynolds' goals, but the goals of the general (13) category of cigarette advertising. What is it trying to (14) accomplish? (15) A. I can tell what we're doing. I don't know if (16) everyone else has the sale goals or not. But this Is - (17) this is our goal, which is to maintain brand loyalty and (18) generate competitive switching among adult smokers. (19) Q. Advertising's not meant to get someone to purchase (20) your product? (21) A. If you maintain brand loyalty among your current (22) adult ' smokers, that is purchasing your product. (23) If you generate competitive switching among adult (24) smokers, that is purchasing your product. (25) Q. So advertising - one of the goals of the Page 93 (1) cigarette advertising is to get someone to select your (2) product? (3) MS. BIXENSTINE: Objection. (4) THE WITNESS: Again, our goal in advertising is to (5) communicate brand information that maintains brand loyalty (6) and generates competitive- switching. (7) MR. JANACEK: Q. And how do you do that? You try (8) to make it attractive? (9) MS. BIXENSTINE: Objection to the form of the (10) question. (11) THE WITNESS: What we do is we try and communicate (12) information that will be unique, meaningful and relevant to (13) smokers. (14) MR. JANACEK: Q. Okay. Why do you do that? (15) A. To maintain brand loyalty and generate competitive (16) switching among adult smokers. (17) Q. So that's - I mean that's just - that's an (18) advertising tenet, that if it's unique, meaningful and (19) relevant, then it will get people to switch or to stay with (20) your brand? (21) MS. BIXENSTINE: Objection to the form of the (22) question. (23) THE WITNESS: I said that's criteria we use. (24) MR. JANACEK: Q. You have no - you have no (25) information on general • advertising principles? Is that my Page 94 (1) understanding? (2) A. That's not what I said. (3) Q. Well, that's what I'm trying to Lvnn Beasley - S/29i97 get at. General (4) advertising principles, what are the goals of advertising? (5) MS. BIXENSTINE: Objection. (6) THE WITNESS: Again, what we try and do with (7) advertising is communicate information about the brand that (8) will maintain brand loyalty and generate competitive (9) switching among adult smokers. (10) MR. JANACEK: Q. I'm not talking about Reynolds (11) at this point in time. We'll get to Reynolds. (12) Advertising in general. You took classes on (13) advertising, marketing? (14) A. Yes. (1S) Q. As an MBA? (16) A. Um-hmm.• Yes. (17) Q. You're experienced in advertising in general? (te) A. Yes. (19) Q. Your training - you could have gone to cigarette (20) advertising or some other product. (21) A. That's right. (22) Q. So you've got some information on what (23) advertising - you know, what are the goals, what are - (24) what does advertising seek to accomplish, correct? (25) A. Yes. Page 9S ( i) Q. What does - you know, expand on that. What are (2) those goals? (3) MS. BIXENSTINE: Objection to the form of the (4) question. It's vague and overbroad. (5) If you understand it, you can answer. (6) THE WITNESS: What do you mean? (7) MR. JANACEK: Q. I'm not an advertiser. Okay? (8) So I want to start at the beginning. (9) I want you to give me a synopsis, if you'can, of (10) what advertising does, what advertising seeks to accomplish. (11) A.Can- (12) Q. Not with respect to cigarettes or Reynolds, but in (13) general what is the concept behind advertising? (14) A. Communicate brand Information. (15) Q: And why is communicating brand information (16) important? (17) A. In order to consider a brand you have - you want (18) to'know something about it as a consumer. (19) Q. What do you mean by to consider a brand? To (20) consider purchasing a brand? (21) A. To consider purchasing a brand. To consider (22) consuming a brand, whatever. (23) Consumers - advertising provides information (24) about a \N1.1X•:i brand such that consumers can make a decision on -(:S) on that brand. Page 96 (1) Q. And you want to provide them with information so (2) that they'll select your brand if there's a choice? (3) A. To, again, maintain brand loyalty. These are (4) people who have already chosen our brand, adult smokers. (5) Q. We're not talking about smokers. We'll get to the (6) cigarette advertising. (7) Let's use toothpaste as an example. (8) A. Um-hmm. (9) Q. If you - what is the role of advertising? Is it (10) to get people to purchase your toothpaste? Isn't that (11)the- (12) A. I suspect that they have very - again, obviously (13) I haven't worked on toothpaste. But I suspect that it's to (14) maintain brand loyalty, people who are currently purchasing (15) their brand of toothpaste, and to generate competitive (16) switches If someone is using Crest and they're selling Alm, (17) they want to switch them to their brand. (18) Q. So advertising isn't meant to increase your (i9) sales? I'm just not following. I don't - I may not - (20) like I said, I'm not a marketer, so - (21) A. What advertising does is it communicates (22) information and - about your brand. And you hope that (23) information will accomplish two things. Maintain loyalty (24) among current users and generate switching from other (25) brands. Page 97 (1) Q. And advertising isn't used to try to get someone (2) to select a brand for the first brand. If you're not - (3) never purchased soap before, you wouldn't advertise - you (4) wouldn't use advertising to try to get someone that -was (5) going to be purchasing soap to select a particular brand of (6) soap? (7) MS. BIXENSTINE: I object to this line of (8) questioning as being beyond the scope of the deposition (9) notice. But you can answer. (10) THE WITNESS: That's - that's a really strange (11) question. (12) If - I mean I don't know anybody who hasn't used (13) soap. But if what you're asking is a new brand that doesn't (14) have any current users? (1S) MR. JANACEK: Q. Or new users to a brand. For (16) example, you say you don't know people that don'.t purchase (17) soap. I would assume that, you know, until you move out of (18) the 4 Page 92 to Page 97 (41S) 392-0650 Tooker & Antz 051-41y a, i0A-
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household, you're not going to be purchasing the soap. (19) someone in the - you know, some other person is going to be (20) making that decision. (21) A. Possible. (22) Q. So my question is with respect to advertising, (23) you know, is there - isn't the bottom line to increase (24) sales? Is that what you want to do with advertising? (25) MS. BIXENSTINE: Objection. Asked and answered. Page 98 (1) THE WITNESS: The bottom line is to provide brand (2) information. That's what advertising does. It provides (3) information. (4) And what you hope the effect of that information (5) is is to maintain the loyalty of your current users. (6) Obviously, if you don't have any, you're not maintaining (7) loyalty. But if you're - you have current user, to (8) maintain loyalty of current users and get people from other (9) brands to switch. (10) Now, if you are successful on both of those, you (11) hope to increase your market share. (12) MR. JANACEK: Q. Isn't there another market of (13) people that haven't yet selected a brand? (14) A. What do you mean" (15) Q. If - if I'm hearing you correctly, you're telling (16) me there's only two purposes for advertising. One is to (17) maintain brand loyalty. (18) A. That's correct. (19) Q. And the only other purpose is to get someone to (20) switch from using a different brand. (21) A. That's providing information to accomplish those (22) two things. (23) Q. And if I'm hearing you correctly, a goal of (24) advertising is not to get someone that hasn't made a brand (25) selection, that isn't a current - a competitor user - Page 99 (1) competitive user, to purchase a product. So a goal of (2) advertising is not to get new users of the brand, if I hear (3) you correctly. (4) A. I don't know what you mean. It's to - somebody's (5) smoking " Marlboro and we want them to switch to Camel. If (6) they haven't smoked Camel before, then obviously they're (7) coming to Camel. (8) Q. We're not talking about cigarettes. We're talking (9) about advertising - general - (10) A. It's using it as an example. That's competitive (11) switching. (1=) Q. So there's someone who has never had orange juice (13) before, and advertising's not going to - you're not going (14) to use advertising to try to get that person to drink your (15) orange juice if they're going to make . that decision because (16) they don't drink orange juice? (17) A. Right. If they don't drink orange juice - (18) Q. But they decided to drink. I mean so that market, (19) the people that haven't yet taken a brand or made a brand (20) decision, that's not a market that advertising would be (21) looking at? Is that your testimony? (22) A. You have to say it again. I don't know what you (23) said, quite honestly. (24) Q. Maybe it's a marketing - market question. You've (25) got two markets that you've identified. Current users of Page 100 (1) your brand, correct? (2) A. Yes. (3) Q. Current users of another brand. (4) A. Right. (5) Q. Isn't there another market which is non-users of (6) the brand, of any brand? (7) A. Non-users of the category? (8) Q. What do - (9) A. Is that what you mean? (10) Q. What do you mean by category? (11) A. Well, soap is a category. (12) Q. Dkay. Yes. That's what I mean. (13) A: No, I don't believe that is. (14) Q. That's not a market? (15) A. Unh-uh. (16) Q. Okay. So you wouldn't be trying - and I'm not (17) talking about cigarettes. But advertising wouldn't be (18) gtared to get that market that is - has made the decision (19) to enter the category but hasn't yet - you know, isn't a (20) competitor user? (21) A. I don't know if there is a category that's trying (22) to do that. I don't know. I'm not aware of it. I don't (23) think it would be particularly effective. (24) Now, what I am aware of is - and I believe this (25) is competitive switching. For example, you have the pork Page 101 (I) manufacturers advertising the qualities of pork. They're (2) trying to get people to switch from eating red meat to (3) eating pork. That's competitive switching. That's my (4) definition. (5) Q. But that market - advertising isn't trying to get (6) someone that's decided they're going to eat meat for the (7) first time to select pork over beef? i \ ~1 . \ (8) A. No, I don't think so. I mean I don't know what (9) their objectives are. I haven't studied them, but I would (10) guess not. -I don't think it would be effective at doing (11) that. (12) Q. That's just not a market that anyone would (13) consider? (14) A. I don't know if anyone would consider it or not. (15) I'm telling you that I don't think advertising would be (16) effective doing that. (17) Q. We'll get to the effect. I'm not at the effect (18) yet. I'm just at the goals. Does that mean that that's -(19) if you had your druthers, if someone had - decided - and we (20) will go cigarettes now, and that they were going to smoke (21) cigarettes, and they hadn't decided which brand they were (22) going to smoke - (23) MS. BIXENSTINE: Objection. (24) MR. JANACEK: Q. Would - I haven't even fished (25) my question. Kim. Page 102 (1) MS. BDCENSTINE: You already asked her about this (2) and she said she was not aware of such a category of people. (3) MR. JANACEK: Q. So if someone had made that (4) decision but hadn't entered the market, they - so they're (5) not - you not going to get them to switch because they (6) don't have anything to switch from - (7) A. Then they're not a smoker. (8) Q. Right. And advertising wouldn't be - that (9) wouldn't be a market that advertising would be geared (10) towards, is people that are entering the market but haven't (11) made a brand selection? (12) A. You're either a smoker or . you're not. And if (13) you're a smoker - and we talk to people who are daily (14) smokers. And daily adult smokers, that's who we talk to. (IS) And those people are obviously - because they're smoking, (16) they - they're smoking some brand. (17) Q. Let me pose the following hypothetical. You've (18) got a 24 year old. Okay? Clearly an adult. Someone you (l9) can legitimately market to. (20) A. Um-hmm. (21) Q. Not a smoker. Okay? But has made the decision (22) that he's going to become a smoker. Are you following me? (23) A. (Witness nods head.) (24) Q. Okay. So he's got - (25) A. I believe so. Page 103 (1) Q. So now he's got a brand choice to make. He can do (2) Camel, Marlboro, Vantage, you name it. I don't Page 97 to Page 103 Tooker & Antz (9 ) 5),392-0650 51714 2111
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 5, 29:97 mean to (3) leave out the other tobacco I compankes that are here. So (4) he's got a choice to make as to which cigarette. But (5) that - that type of a person is not a market for your (6) advertising? Is that what I'm hearing? (7) A. Our - the market for our advertising is current (8) smokers, people who are currently smoking. (9) Q. So you wouldn't want to get that person to select (10) your brand as his first brand? (11) A. When someone Is - becomes a smoker, then we want (12) them to choose our brand. It Is after they become a smoker. (13) Q. Define smoker for me. What are you using as (14) smoker? ( t s) A. To us, smoker b-someone who smokers cigarettes (16) daily. (17) Q. So then I'm right. You don't want to - to - as (18) a customer, Reynolds does not want the person, that 24 year (19) old that's now beginning - now decided to smoke, Reynolds (20) does not want that person to select Camel? (21) A. You know - (22) MS. BIXENSTINE: Objection. Asked and answered. (23) THE WITNESS: Again, I don't know of any person (24) like that. I can't imagine, so - (25) MR. JANACEK: Q. You can't imagine a - someone Page 104 (1) that's 24 years old that hasn't smoked that's going to begin (2) smoking? (3) A. That has never smoked but decided to smoke? (4) Q. Right. (5) A. No. (6) Q. What about a 24 year old? When do people begin to (7) smoke? (8) A. People - the average age of daily smoker - daily (9) smoking, the average age at which people become daily (10) smokers is between the age of about 18 and 19. (11) Q. Now, are there other types of smokers besides (i2) daily smokers? (13) A. There are people experimenting with smoking. (14) Q. And what are experiment - what would you call (13) them? Experimenters? (16) A. I guess, yes. (17) Q. What's the average age of people that experiment (18) with smoking? (19) A. I believe It's - the average age that people (20) experiment with smoking I believe is between 15 and 16. (21) Q. Is there a category of smoker that's before (22) experimental smoker? (23) A. No. (24) Q. Okay. And you say the average age of daily (25) smokers is 18 to 19. Page 105 (1) A. Um-hmm. (2) Q. Well, that's an average. So aren't there people (3) that begin smoking or become daily smqkers when they are 20, (4) 21, 22? (5) A. Yes. (6) Q. So if they haven't selected a brand - (7) A. If they're smoking, they're smoking a brand. (8) Q. All right. So if they haven't selected a brand by (9) the time they're 20, they're not a smoker - they're not a (10) daily smoker, you don't want that person to select - to (11) smoke Camel or to select Camel? (12) A. I don't - say that again, now. (13) Q. You've got these people that are 20 years old that (14) are not smokers under your definition, not daily smokers. (15) They haven't selected a brand. (16) MS. BIXENSTINE: Objection. (17) THE WITNESS: What do you mean? They don't smoke? (18) MR. JANACEK: Q. No. I'm using your - your (19) terms. They - the - they are not smokers. They smoke, (20) but they haven't selected a brand. (21) A. They're experimenting with smoking. (22) Q. They are experimental smokers or experimenters. (23) A. Um-hmm. (24) Q. What's your term? Experimenters. Reynolds does (25) not want to get that market, the experimenter market? Page 106 (1) A. No. (2) Q. So they don't want the experimenter to select (3) Camel as the first brand? (4) A. No. We are interested in people who have made the (5) decision to smoke, and we market our brands to adults who (6) have made the decision to smoke. (7) Q. What does Reynolds do to make sure that (8) experimenters do not select Camel as their brand? (9) A. I don't believe there's anything you could do. (10) Q. So Reynolds doesn't do anything? (11) A. I don't beUeve there's anything you could do. (12) Q. The answer is you don't believe there's anything (13) they could do, so they don't do anything? (14) A. I can't think of anything you \.,.X~.:.~ could do. (15) Q. Well, let me ask it this u•ay: What - what does (16) Reynolds do to make sure that experimenters don't select (17) their brand? (18) A. We market our products to adult smokers. And the (19) promotions are limited, participation in our promotions are (20) limited to adult smokers. We do our development research (21) among adult smokers. (22) Q. Isn't one of the goals of advertising to make (23) consumers aware of the product? (24) A. What do you mean by aware of the product? Aware (25) of the brand? Page 107 (1) Q. Aware of the brand, product. (2) A. Sometimes it Is. It depends upon If you already (3) have awareness or not. (4) Q. When - you said sometimes it is a goal of (S) advertising. When is it a goal of advertising? When is (6) awareness a goal of advertising? (7) A. Probably if you don't have awareness It would be a(e) goal. It would be part of the brand information I talked (9) about. In this case, they don't know about the brand name (10) so you're communicating that information. (11) Q. So that's not for the people that are already (12) using the brand? That's for the switchers? (13) MS. BIXENSTINE: Objection to the form of the (14) question. (1S) •THE WITNESS: I don't know what you're asking. (16) Say It again. (17) MR. JANACEK: Q. I said sometimes awareness can (18) be a goal of advertising. (19) A. Um-hmm. (20) Q. And when I asked you, you know, what do you mean (21) by sometimes, you said if they don't know the product or the (22) brand. (23) MS. BIXENSTINE: Objection. Misstates the (24) witness' testimony. (25) MR. JANACEK: Q. Who would - who would you be Page 108 (1) talking about? (2) MS. BIXENSTINE: Objection. Misstates the (3) witness' testimony. (4) You can answer. (5) THE WITNESS: What I said was if people are not (6) aware of the brand then you - an objective could be to make (7) smokers who aren't aware of the brand aware of the brand. (8) That would be part of the brand information. (9) 'MR. JANACEK: Q. Because if they're not aware of (10) the brand they A Page 103 to Page 108 (415) 392-0650 Tooker & Antz 5,-4-14 a ~ i I P~
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es., Mangini vs R.J. Reynolds Lynn Beasley - S/29/97 ( 14) Q. Well, how do you determine if smokers feel that (15) their brand is the best brand? (16) A. Usually we do a quantitative study. (17) Q. So that's a quantitative - I thought you just (18) told me that was a qualitative? (19) A. Qualitative is focus groups. That's where you sit (20) down and talk to people and ask them. (21) You asked me the question what else do we do to (22) look at our advertising effectiveness. (23) Q. Well, we've gone through the quantitative and then (24) you told me the best brand and better value - you know, (25) whether they think they're getting a better value is a Page 114 (1) qualitative sign. So that's quantitative, as well? (2) A. Yes. (3) Q. How do you determine quantitatively if smokers (4) believe that theirs is the best brand or they're getting the (5) best value? (6) A. You do a survey and you ask them the question. (7) Q. Are those the only two things that you're (8) interested in in determining whether or not, quantitatively (9) speaking, whether or not your advertising is effective in (10) maintaining brand loyalty? (11) MS. BIXENSTINE: Objection. Misstates the (12) witness' testimony. (13) THE WITNESS: Those are - I was giving you (14) examples of some of the things we ask. There are obviously (15) many measures we ask about. . (16) MR. JANACEK: Q. Well, let's go through them. (17) What types of things do you as, you know, Reynolds do to see (18) if your advertising is effective in the market that you're (19) trying to get at, trying to get competitor - or loyal (20) smokers to remain loyal? (21) A. Okay. I've gone over the loyalty measures, share (22) of smoker and share of requirement, and I've talked about (23) the quantitative research and the qualitative research. (24) Q. Right. So we're at the qualitative research right (25) now. Page 115 (1) A. All right. (2) Q. You wouldn't call - maybe I've got my terms (3) wrong. You wouldn't call the tracking the share of smoker (4) or the share of requirements the quantitative research? (5) That's something else? (6) A. That's a piece of quantitative research. (7) Q. That is quantitative research? (8) A. It is. (9) Q. Besides those two measures. the actual how is the (10) share doing in the market or how is the brand doing in the (I1) marketplace - (12) A. We do a survey of softer measures. It's not share (13) of smoker or share of requirement, but the softer measures. (14) "Do you think your brand is the best brand?" But we do that (15) quantitatively. That Is a survey. (16) Q. So best brand is one of the things you're looking (17) for to determine effectiveness? (18) A. I don't know if that's the exact wording, but I'm (19) giving you a sense for the kind of questions we ask. (20) Q. Right. And I would like to get, you know, the (21) list of questions type thing. I would like to - (22) MS. BIXENSTINE: Frank, do you plan to get to the (23) deposition notice at any time? (24) MR. JANACEK: This is the deposition notice. (25) She's the person most knowledgeable on brand loyalty. ~ Page 116 (1) MS. BIXENSTINE: We haven't talked about the Joe (2) Camel campaign, so I was just wondering when we w.ere going (3) to get to that. (4) MR. JANACEK: Q. So what other types of things, (5) questions or - what do you call these? Attributes? What.(6) would you call these questions? Is there a label for them? (7) A. We could call them perceptions. We could call (8) them attributes. It's - (9) Q. What types of attributes or perceptions are you (10) looking for to ensure that the advertising is working? (11) A. The key measures we look at to see if the (12) advertising is working Is the brand loyalty measures I(13) already told you about and our competitive switching, are we (14) gaining the switching. (15) Q. Right. Now before we get to the competitive, I'm (16) just looking at - I'm kind of laying it out so you can - (17) like I said, you need to tell me how it's done because I(18) don't do it. (19) So you do this survey. What types of - what (20) information besides whether the smokers believe it's the (21) best brand or they're getting the best value, what other (22) attributes or perceptions do you measure in your (23) quantitative research to determine if the advertising is (24) maintaining brand loyalty? (25) A. Well, those are the key measures we look at to see Page 117 (1) if it's maintaining brand loyalty. I mean you know you're (2) maintaining brand loyalty if your share of smoker is holding (3) and your share of requirement's holding. You know you have. (4) Q. Right. But we - we're past that. We are talking (5) about the quantitative surveys. (6) MS. BIXENSTINE: Objection. Asked and answered. (7) THE WITNESS: Right. That's what I'm telling you. (8) MR. JANACEK: Q. So there's - so the two (9) perceptions for the quantitative surveys would be whether (10) your brand is the best and whether it's getting the best (11) value? (12) A. There might be a couple other questions. You (13) know, I really can't remember. (14) But we come up with questions that we think (15) indicate a brand loyalty. There might be three or four (16) questions, I don't know. (17) Q. Who would know, if I were to ask someone at (18) Reynolds, who would know wh(tt the attributes are to (19) determine? (20) A. There aren't any definite set of attributes that (21) we measure every time. There just aren't. (22) We look at - you know, it's your brand and you (23) decide what questions you want to ask about it. So there (24) isn't anyone at Reynolds. You can ask me what ones we've (25) measured and I can give you my best recollection. Page 118 (1) Q. And that's what I'm - (2) A. For each brand it's going to be different. (3) Q. All right. With respect to Camel brand, what's (4) the - what are the attributes, general attributes that (5) you're looking for? (6) A. The ones that I - (7) MS. BIXENSTINE: Objection. Could you specify the (8) time frame? Are we talking currently? (9) MR. JANACEK: We're talking - (t0) Q. Has Reynolds changed the way it does its (11) quantitative - how - strike that. (12) Has Reynolds changed its analysis of how it (13) determines if advertising is effective in maintaining brand (14) loyalty between the inception - between 1987 and present? (15) A. I don't think there have been significant changes. (16) Q. Okay. So the same attributes that are looked at (17) today are - were 4 Page 113 to Page 118 (415) 392-0650 Tooker & Antz 5i4iLI aI ta~r
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es, Mangini vs R.J. Reynolds Lynn Beasley - Si_9i97 \.I., , until recently, in 1985 (2) there were a set of focus groups done where some versions of (3) the French Camel poster were included and not pursued after (4) that. (5) Q. And that was the earliest you've - you're aware (6) of that the French Camel was being considered in - for (7) domestic tobacco? (8) A. Considered for domestic tobacco - (9) Q. Being used by R.J. Reynolds Tobacco Company in the (10) United States? (11) A. You know, I don't know. I mean obviously that's (12) when I - I became aware of that a few weeks ago, so - (13) Q. But that's the earliest that you're aware of it? (14) A. That's - (ls) Q. You're not aware of any other information about (16) the French Camel that predated that 1985 focus group you (17) were testifying about? (18) A. I don't think so. I mean I- to my knowledge (19) they - I didn't even know they had looked at It then, and I(20) certainly don't have any knowledge that they looked at It (21) before then. (22) Q. My question is not so much what they did, but your (23) awareness. (24) A. I am - (25) MS. BIXENSTINE: Objection. Asked and answered. Page 83 (1) THE WITNESS: I'm not aware. (2) MR. JANACEK: Q. Of anything predating - (3) A. I'm not - (4) Q.-the19- (5) A. - aware of it. (6) Q. So you weren't involved in those focus groups when (7) you were an assistant on the Camel brand? (8) A. No. (9) Q. Who would have been involved in those focus groups (10) at that point in time? (11) A. The brand manager of Camel. That's who the report (12) went to. (13) Q. Do you know who that was? (14) A. Um-hmm. (t5) Q. Who was that? (16) A. Rick Caufield. (17) Q. Do you know if Mr. Caufield still works at (18) R.J. Reynolds Tobacco Company? (19) A. He does - I'm not really sure. He doesn't work (20) at the domestic company. (21) Q. After you were a brand manager of Century, what (22) was your next position? (23) A. I told you I picked up more than just Century. (24) Q. Right. Doral, Magna's. (25) A. We had those other brands. I believe then my next Page 84 (1) position was senior brand manager. I was assigned in June (2) of 1987 to senior brand manager of the Camel brand. And by (3) the way, when I picked up those other brands I became senior (4) brand manager, I believe. But you're going to see all of (5) that when you get the CV. (6) MS. BIXENSTINE: Frank, can we take a break (7) shortly? (8) MR. JANACEK: Sure. Let me just get through this (9) part. (10) Q. So you were senior brand manager in June of 1987? ( i l) A. Yes. On Camel. The Camel brand. . (12) Q. Did your duties change when you became senior (13) brand manager? (14) A. I took over the responsibility for the Camel brand. (15) Q. Other than the brand changes, the duties that you (16) had as a senior brand manager versus a brand manager, did (17) the - (18) A. No. The difference between brand manager and (19) senior brand manager is really bow much responsibility do (20) you have. (21) Q. What was your next position? (22) A. After Camel? (23) Q. Yes. After the senior brand manager at Camel. (24) A. I was director of special markets. (25) Q. What's that? Page 85 (1) A. What do you mean, what's that? (2) Q. What does a director of special markets do? (3) A. What does the director of special markets do? (4) What are you asking me? (5) Q. What were your roles? What was your role, what (6) was your duties? (7) A. You know, It was a position that hadn't existed (8) before. And I was put into it, and what they asked me to do (9) was look into Reynolds' position among adult Hispanic (10) smokers, adult African American smokers, markets that we (11) normally did not spend as much attention on. (12) Q. So a special market would be like a Hispanic (13) market? (14) A. That's one example. (15) Q. What other examples of special markets are there? (16) A. It's any - It could - it's possible that it ;1?) could be a market other than the Anglo market. (18) Q. So it would be anything other than the Anglo (19) market? (20) A. Not necessarily. It could be. It could be the (21) military market, if you wanted to define It that way. (22) Q. What markets did you look at? (23) A. I looked at - during my position there I looked (24) at adult Hispanic smokers adult African American smokers. I(25) looked at the military market. I believe we briefly looked Page 86 (1) at the Asian adult smoker market very briefly. (2) Q. Any other markets that you're aware of that the - (3) A. I don't recall any others. (4) Q. Was there anyone else that was involved in the (5) special - if you were a director, I assume you had other (6) employees? (7) A. It didn't - It wasn't a position that existed (8) before, so I don't believe initially I did have any (9) employees. (10) Q. Was anyone else looking at special markets at the (11) same time? Were you the only one? (12) A. No, I - It was just me. (13) Q. And when was that, generally? (14) A. April of'88 is when I left the Camel brand and (1S) moved to director of special markets. (16) Q. Who took over your responsibilities at the Camel (17) brand at that time? (18) A. Cliff Pennell. (19) Q. And you no longer had any involvement in the Camel (20) brand at that point in time? (21) A. No, that's not true. I no longer was responsible (22) for the Camel brand, but as a result of being involved with (23) the special markets I would look at the Camel advertising (24) and we would do translations in Spanish of the Camel (25) advertising so that It could be placed in Spanish-speaking Page 87 (1) stores. (2) Q. Did your function - was that across brands? So (3) did you do the same thing for Salem and Winston? (4) A. Um-hmm. It was across brands, that's correct. (5) Q. Did you have any particular emphasis on any (6) particular brands at that point in time? (7) A. We were really trying to do It across brands, to (8) see, you know, what - what kind of opportunity we had and (9) what the needs were. Tooker & Antz Page 82 to Page 87 (415) 392-0650
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BSA (:4) A. I didn't say that. hlangini vs R.J. Reynolds Lynn Beasley (25) Q. Well, where does sales play in the picture? What Page 124 (1) role does sales have on determining if the market is (2) effective? (3) A. Obviously, if you maintain brand loyalty and you (4) generate competitive switching, then you grow market share (S) and that's where the money comes In. (6) Q. You sell more cigarettes. (7) A. Of course, depending on the size of the whole (8) category. But yes, market share should - It translates (9) into selling more cigarettes than you otherwise would have (10) sold If you had a lower market share. Of course. (11) Q. Right. So you advertise to generate sales? (12) A. We advertise - (13) MS. BIXENSTINE: Objection. Asked and answered. (14) THE WITNESS: We advertise to provide brand (15) information that maintains brand loyalty and generates (16) competitive switching. That's why we advertise. (17) MR. JANACEK: Q. And you want to maintain brand (18) loyalty and achieve competitive switching to increase sales? (19) MS. BIXENSTINE: Objection. Asked and answered. (20) THE WITNESS: Again, we hope the outcome of those (21) two things is that we grow our market share. (22) MR. JANACEK: Q. All right. So that your sales (23) will grow? Is market share and sales, are those the same (24) terms? Is that why I'm not understanding you? (25) A. They're not necessarily the same terms. Page 125 (1) Q. Then I mean - well, let me put it this way. I(2) guess, if I'm hearing you correctly, one of the goals of (3) advertising is not to increase sales? (4) MS. BIXENSTINE: Objection. (5) THE WITNESS: I didn't say that. (6) MR. JANACEK: Q. Is a goal of advertising to (7) increase sales? (8) A. Our goal for the advertising Is to maintain brand (9) loyalty and to generate competitive switching. (10) Q. So it's not to increase sales? (11) A. I didn't say that. (12) Q. Well, let me ask you a yes or no. Because this is (13) a yes or no question. (14) Is a goal of advertising, of Camel's advertising, (15) to increase the sale of Camel cigarettes? (16) MS. BIXENSTINE: Objection. If you can answer it (17) with a simple yes or no, then do that. If it's misleading, (18) then you can answer it as you think is a fair answer, (19) THE WITNESS: The goal of our advertising is to (20) maintain brand loyalty and generate competitive switching. (21) If we accomplish those two things - and that's (22) how we measure the effectiveness of advertising - then we (23) should grow our market share. (24) MR. JANACEK: Q. And your sales should increase? (25) A. The market share Is related to the size of the . Page 12 (1) category overall, obviously. (2) Q. And it seems obvious to me, except that you just (3) won't say it, so that's why I think I must be missing (4) something. (S) A. No. I can only tell you what our - our objective (6) is for advertising. And I believe I've said that several (7) times. (8) Q. Okay. Isn't a goal of advertising to draw (9) attention to the advertising? (10) A. To provide brand information. (11) Q. Well, you have to provide the brand information, (12) but I suppose if you put the ad in the marketplace and no (13) one looks at it, you don't - (14) A. Then you haven't provided the information because (13) nobody looked at that time. (16) Q. So one of the goals is to get people to look at (17) the ads? (18) A. People need to look at the ads to get the (19) information. (20) Q. How much money does Reynolds spend each year in (21) advertising and promoting Camel cigarettes through the Joe (22) Camel campaign? Starting with'87. (23) MS. BIXENSTINE: Objection. That's trade secret (24) information. (2s) MR. JANACEK: It's - we've got a protective Page 127 (1) order, (2) MS. BIXENSTINE: Well, I don't think we have a (3) protective order that protects that information vis-a-vis (4) Reynolds' competitors. (5) MR. JANACEK: Then you can ask Reynolds' (6) competitors to leave the room. I mean this is legitimate (7) information for us, and this is what I want to know. You've (8) beep dying - (9) MS. BIXENSTINE: Why is it relevant? (1o) MR. JANACEK: You've been dying for me to get to (11) the Joe Camel campaign and I get there and now you're saying (12) I can't ask that • 5/29/97 question. \\t.i\ :4 (13) MS. BIXENSTINE: But why is it relevant to your (14) complaint in this case? (15) MR. JANACEK: It's relevant because it shows the (16) amount of money they spent on advertising. That can be (17) used - (t8) MS. BIXENSTINE: Why is that relevant to your (19) claim in this case? (20) MR. JANACEK: It can be used to determine - and (21) I'm not going to give you a full-blown argument, but I'll (22) give you two quick points. It can be used to determine what (23) amount of money Reynolds will need to spend to correct the (24) wrongdoing. You know, if they spend however much a year, (25) they may need to spend that much a year to undo their Page 128 (1) damage. (2) MS. BIXENSTINE: I don't see a correlation. (3) What's your other argument? (4) MR. JANACEK: Well, that's fine. It also shows -(S) it will also let us make sure that we've got all of the (6) advertising, we know how many pieces are out there, so it (7) gives us the basis to -~ for discovery and to what - where (8) the advertising's placed, who it's with, how much money is (9) spent. (10) MS. BIXENSTINE: Where it's placed has nothing to (11) do with how much is spent. I don't think you need to know (12) those numbers. And that's highly competitive information, (13) and I don't think that the current protective order is (14) sufficient protection for Reynolds with respect to that very (1S) proprietary information vis-a-vis its competitors. And we (16) have the right to seek additional protection. (17) MR. JANACEK: We are nota competitor. (18) MS. BIXENSTINE: Right. But we have people in (19) this - (20) MR. JANACEK: Well, then I think the deposition (21) should be suspended with respect to any action in which any (22) competitor is involved, I'll ask the question, this (23) deposition transcript won't be sent to people in the actions (24) that have - (25) MS. BIXENSTWE: Why don't - Page 129 (1) MR. JANACEK: If you are concerned about. (2) MS. BIXENSTINE: Why don't you get - ask it in an (3) interrogatory that we could put under seal and get special (4) protections for? (5) MR. JANACEK: Because I've got the person that (6) supposedly knows this information right here and I want to Page 123 to Page 129 (415) 392-0650 Tooker & Antz !5)-+) a a1 v3n
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t '~ get the question. (8) MS. BIXENSTINE: I don't - where is that in the (9) deposition notice? (10) MR. JANACEK: That is on the marketing and (11) promotion of Camel cigarettes. She's the person most (12) knowledgeable. (13) MS.BIXENSTINE: Aboutthe amount spent? Where is (14) that? ( t 3) MS. LAPORTE: Person most knowledgeable regarding (16) the cost. (17) MR. JANACEK: Placement, location and (18) demographics. If you've got a concern with the competitors. (19) I understand that, and I think the way to approach that is (20) you kick them out of the room and we'll proceed. (21) MS. BIXENSTINE: Why don't we take a break and so (22) we can discuss it with - (23) MR. JANACEK: You want to take a five-minute (24) break? (25) MS. BIXENSTINE: Yes. Page 130 (1) THE VIDEOGRAPHER: We are off the record. (2) MR. HOPPER: Why don't we break for lunch. It's (3) noon. (4) MR. JANACEK: Break for lunch? (5) MS. BIXENSTINE: Okay. (6) THE VIDEOGRAPHER: We are off the record at 11:56 (7) a,m. (8) (Lunch recess - 11:56 am to 12:55 pm.) (9) THE VIDEOGRAPHER: We are back on the record at (10) 12:55 p.m. (11) THE WITNESS: Because Frank. I wanted to correct (12) something, if I could, before we - (13) MR. JANACEK: Sure. (t4) THE WITNESS: - go any further. I just wanted to (15) clarify that when I made the statement on the guidelines to (16) our billboard suppliers, the guideline is that a billboard (17) cannot be placed within 500 feet of a junior high, a high (18) school, an elementary school or a children's playground. (19) Cannot be placed within 500 feet of that. (20) MR. JANACEK: Let me follow on that, then we'll (21) get to the other issue. ' (22) Q. So what - what guidelines do you give them with (23) respect to where to place it? (24) A. It depends upon the brand's objectives. It could (25) be that you only want them in some part of the geography. Page 131 (1) You know, it might be you just want them in 10 of our sales (2) regions or rive of our sales regions or - it depends upon (3) the brand's objectives. (4) Q. So Reynolds doesn't give any specific guidance (n with respect to where to place them other than 'we want them (6) in San Francisco'? (7) A. We would say - what we ask for IS a certain (8) amount of GRP's. (9) Q. What are GRP's? (10) A. It's gross rating points. It's the amount of (11) duplicated circulation a board provides. (12) Q. So you would specify - if I understand you (13) correctly, you would specify 'We want a billboard with X (14) number of GRP's'? (15) A. Not a billboard. For that total market. Excuse (16) me. (17) Q. Then you would - are you all right? So If I'm (18) understanding you correctly, you would specify you want a (19) certain amount of GRP's for a market, and then they would (20) come up with the mix to get those GRP's? (21) A. Um-hmm. That's correct. (22) Q. And then the only thing you would tell them other (23) than 'we want X GRP's' is they can't be 500 feet within (24) schools and parks and the list that you listed? (25) A. That's correct. Page 132 (1) Q. And those are the guidelines that would be given (2) to, and those are the only guidelines that would be given to (3) them? (4) AArhere are oiher guidelines. Obviously, we don't (5) want billboards that face the wrong direction or aren't (6) maintained or, you know, there are obviously other just (7) logistical things that are important to us. (8) Q. What do you mean by face the wrong direction? (9) A. You know, if - If you're driving down the highway (10) and the board Is sort of turned so you can't see It, things (11) like that. (12) Q. So it's just not easily viewable? (13) A. Right. Things like that. (14) Q. But again, that's more in the where you don't want (l3) the ads placed than affirmatively telling them where to (16) place ads? (17) A. That would be correct. (18) Q. Are there any guidelines, other than the GRP's, (19) that you would provide to a billboard company or - I can't (20) remember what entity you identified, but to the billboard (21) company with respect to where to affirmatively place (22) billboards? (23) A. No. Again, it's to achieve the market coverage. (24) MR. JANACEK: Okay. An issue has come up with (25) respect to the i spending of R.J. Reynolds. Sfiss I Bixenstine Page 133 (1) objected that it was trade secret and is not the type of (2) information that should be given to competitors. I've (3) checked with the court reporter, just so you know, Kim, and (4) they can do separate depo transcripts where there would be a (5) blank insened, with, you know, blank pages over the (6) duration of the testimony that would be trade secrets so (7) there could be two transcripts set up. (8) And if I understand correctly, we've got ~ that's (9) the procedure we've at least agreed upon, is that if there (10) are trade secret information, competitors will leave the (11) room and there will be put under seal on the transcript so (12) that the competitors get one version without that (13) information and the panies that are protected - are (14) governed by the protective order that aren't competitors (15) will have the set with the full information? (16) MS. BIXENSTINE: I - that's acceptable to me, (17) with the additional qualification that Ms. Beasley will be (18) permitted to testify to matters that are in the deposition (19) notice. So I think that you've pointed to items 3(a) and (20) (b), the cost of Joe Camel billboard advertising and the (21) cost of Joe Camel magazine advertising. (22) MR. JANACEK: It's probably time to start that (23) process so that we can at least get the general numbers. (24) MS. BIX£NSTINE: Okay. So - (25) MR. JANACEK: I guess we should just designate Page 134 (1) this portion under seal. (2) MS. BIXENSTINE: This portion of the deposition (3) Reynolds is designating as confidential under the protective (4) order. It's trade secret and will be under seal. And we (5) will ask counsel for Lorilard and Philip Morris to leave the (6) room, and we'll get them as soon as we're finished with this (7) part of the deposition. (8) (Mr. L'Orange and Ms. Ballinger leave the (9) conference room.) (10) (THE FOLLOWING TESTIMONY UNTIL PAGE 156. LINE 4 HAS (11) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 135 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 136 Page 129 to Page 136 Tooker 8 Antz (415t392-0650 51714 2114
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(15) A. They would be whatever events you're sponsoring. (16) Q. The sports marketing? (17) A. Yeah. Itprobabh•wouldn't be called sports (18) marketing. It would be the actual event you're sponsoring. (19) Q. Could you give me some examples? (20) A. Camel sponsors a NASCAR Winston Cup car. (21) Q. Any other events? (22) A. What do you mean, any other evenu? (23) Q. That would be a budget item, like NASCAR Winston (24) Cup? (25) A. It would be budgeted for any events we do, yes. Page 159 , (1) Q. What are those events? This year. Let's just get (2) this year. (3) A. This year? (4) Q. Right. (5) A. Camel sponsors a NASCAR Winston Cup car. We also (6) are involved with some bar promotions. (7) Q. What are those? (8) A. That's where we go into an adult bar venue, and we (9) may put up some advertising. We may put up a product (10) display, provide the bar with napkins and coasters and that (11) sort of thing. ( t:) Q. Anything else on the event promotion? (13) A. Yes. We also go to motorcycle rallies. (14) Q. Is that different than a motorcycle race? What's (IS) a motorcycle rally? (16) A. It's usually an event where a bunch of motorcycle (17) riders get togetherevery year. (18) Q. Any otherevenu? (19) A. Yes. We also are involved with pool tournaments. (20) Q. Any more? (2 t) A. Tell me what It was I've told you. (22) Q. NASCAR Winston Cup, bar promotions, motorcycle (23) rallies and pool tournaments. (24) A. That's all I recall. (25) Q. What about motorcycle or moto-cross racing? Page 160 (i) Doesn't Camel sponsor those events? (2) A. We did. We have backed out of our sponsorship of (3) that. (4) Q. When did you do that? (5) A. This year we're backing out of that. (6) Q. Why did you do that? (7) A. Because we felt that the other events we had were (8) better. (9) Q. What do you mean by were better? (10) A. We evaluate the events on the basis of how many (11) adult smokers we reach, bow efficiently. And I think the (12) other evenu were better on that criteria. L (13) Q. So it wasn't a dispute with the event people? (14) A. No, no, no. (15) Q. There just weren't enough adults that were (16) attending moto-cross- (17) A. No, that's not It. (18) MS. BIXENSTINE: Objection. (19) THE WITNESS: Tbat was not it at all. We eval - (20) we have a limited amount of money and we were evaluating (21) which events were best. (22) MR. JANACEK: Q. People who attended moto-crosses (23) didn't necessarily smoke Camel cigarettes? (24) A. No, that was not It, either. It's - again, we (25) evaluated the events on their absolute reach of adult Page 161 (I) smokers and how efficiently we could reach those people. (2) Q. It j4st wasn't efficient to reach your target (3) market at a moto-cross? (4) A. Not as efficient as other events. (5) Q. Are there any other types of events that would (6) have been budgete~ for? (7) A: think that's - I believe that's it. (8) Q. When would this operating plan have been created? (9) A. Probably around July through October. (10) Q. So it would have been finalized by October? It (11) would have been - (12) A. Rigbt. (13) Q. It was a process? (14) A. It's a process. (IS) Q. So it would have started in July and - (16) A. (Witness nods head.) (t7) Q. So October of last year there would have been a (18) total dollar amount item for the categories that we wefe (19) just talking about? (20) A. Yes. (21) Q. And you saw that operating plan in October? (22) A. Oh, no. I saw it the whole way through. (23) Q. Right. But you've seen it since October. Right? (24) A. Right. It - it changes each month. It's not (2S) like it's set in stone and that's It. Things happen in the Page 162 (1) marketplace. Our competitors do things that we need to ~:) react to. Some things turned out to have worked and some (3) don't. So the budget is a - it changes every month. How (4) much money is in each of those categories changes every (5) month. It isn't like it's set in October and then that's it. (6) Q. After the operating plan, what's the next stage of (7) the budget process? Is that the - the operating plan is (8) the budget? (9) A. Right. That's the starting point for the budget. (10) Q. Well, so what's the next step? That's the (11) starting point. (12) A. Like I told you, it can change each month based on (13) what happens in the marketplace, what's working, what's (14) not. Some cost estimates you did don't turn out to be (15) right. So it's updated each and every month. (16) Q. So it's not like there's another - it's not - (17) the budget isn't - it's just updated. It's not like (18) there's another step to now breaking it down any further? (19) A. No. (20) Q. And who would have drafted the operating plan? (21) A. It was Fran and I. We were the ones responsible (22) for that.' Ln (23) Q. Is there an operating plan for ~ J each brand? (24) A. Yes. (25) Q. Is there a media plan? Page 163 (1) A. Yes. ~ ~ N r ~ tn (2) Q. Where does the media plan fit in? (3) MS. BIXENSTINE: Objection to the form of the (4) question. (5) THE WITNESS: You mean where does it fit into what? (6) MR. JANACEK: Q. What is a media plan? (7) A. It's a plan of what magazines you're going to run (8) In and how much you're going to spend on magazines and what (9) billboards, how much you're going to spend on billboards, (10) and if you're going to use newspapers what newspapers you're (11) going to use. (12) Q. So I take it you use the operating plan to then (13) create a media plan? (14) A. The budget amount we set is used to then work (15) towards developing a media plan. That would be correct. (16) Q. Okay. So was there a media plan for 1997 for Joe (17) Camel, for the Camel advertising campaign? (18) A. There was a media plan for Tooker & Antz (115}392-0650 Page 158 to Page 163
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BSA the Camel brand. Mangini vs R.J. Reynolds Lynn Beasley - 5/29/97 x.,.,x._s (l9) Q. Camel brand? And when would that have - work on (20) the media plan have begun? (21) MS. BIXENSTINE: For'97? (22) MR. JANACEK: Q. For 1997. (23) A. Probably by - I can't say exactly, but probably (24) by about August-September you're working on the media plan (25) for the next year. Page 164 (1) Q. So the media plan actually's going to be done (2) before the operating plan's done? (3) A. It's - obviously, rough drafts are done before (4) the final operating plan is approved, yes. You're doing (5) things in parallel. (6) Q. And you're doing this - who's responsible for (7) drafting the media plan? (8) A. What do you mean, for drafting the media plan? (9) Q. Who does the media plan? (10) A. Again, as I told you earlier, our media planning (11) department and placement department moved outside the (12) company. And Long Haymes Carr is now responsible for buying (13) our media. And - (14) Q. I'm sorry. Who drafted the media plan? (15) A. They - we give them our objectives and then they (16) come back with a proposal for the media plan. We look at (17) it, we decide what we want to do and we approve it or not (18) approve it or make changes to it. (19) Q. So the media plans are originally created outside (20) of R.J. Reynolds Tobacco Company? (21) A. It's created In conjunction with us, what we're (22) looking for, what our objectives are, what we did last year, (23) et cetera. (24) Q. And who - I would believe there would be some (25) interaction between R.J. Reynolds Tobacco Company and that Page 165 (t) third party vendor? (2) A. Yes. (3) Q. Who would be responsible for that day-to-day (4) interaction? (5) A. Patty Itterman. (6) Q. Patty Itterman? (7) A. I believe I gave you her name previously. (8) Q. Turning back to events for just a second, what (9) about some of the other events that Reynolds would have (10) budgeted for? ( l 1) A. Reynolds? (12) Q. Right. Back to the operating plan, and down to (13) the event (4) Q. All right. Camel's the brand promotions. In 1997, aren't there rock we're talking about. concerts (14) that Reynolds sponsors (5) A. Okay. I just want to be clear. or places ads at? (6) Q. So tractor pulls? Are they no (15) A. Are you talking about longer done? Reynolds? (7) A. Tractor pulls? I don't (16) Q. R.J. Reynolds Tobacco ` remember Camel doing (8) tractor Company. (17) A. So any brand we have you want - (ie) Q. No. Camel. With respect to the Camel brand. . (19) A. Oh. And so what are you asking with respect to (20) the Camel brand? (21) Q. I just wanted to make sure I knew where everything (22) fit in. (23) You couldn't remember anything other than the (24) NASCAR and the bar promotions, and when I suggested - (25) MS. BIXENSTINE: Objection. That misstates her Page 166 (1) testimony. (2) MR. JANACEK: Q. When I suggested the - (3) MS. BIKENSTINE: Sfiie-also toid you about (4) motorcycle - (5) MR. JANACEK: Moto-cross. (6) MS. BIXENSTINE: - and pool tournaments. (7) MR. JANACEK: Q. When I suggested the moto-cross, (8) you said that event had been pulled. So what other events (9) are there in 1997 that are budgeted in ths operating plan? (10) MS. BIXENSTINE: Objection. Asked and answered. (11) THE WITNESS: Those are the ones I recall. (12) MR. JANACEK: Q. There's no - you don't budget (13) for concert promotion? (14) A. I don't - I don't recap any concert promotion (1S) this year. (16) Q. Or would that be in the promotional - that is the (17) promotion. Reynolds has got a partnership with Ticket (18) Master, right? (19) A. That's in continuity. That's one of our (20) continuity offers. (21) Q. What about tractor pulls? Does Reynolds no longer (22) sponsor tractor pulls? (23) A. You mean Reynolds or `Camel? (24) Q. Camel. Reynolds through Camel. I mean Reynolds (25) is the ultimate sponsor, right? They are the ones that pay Page 167 (1) the money. (2) A. Of course, the company pays the money. It's the (3) Camel brand sponsoring It. pulls. (9) Q. What about Monster truck racing? (10) A. No, we don't have any monster truck racing. (11) Q. When did you stop doing monster truck racing? (12) MS. BIXENSTINE: You, you mean Camel? (13) MR. JANACEK: Camel. (14) THE WITNESS: I don't know. It's a while ago. (13) MR. JANACEK: Q. Do you know when monster truck (16) racing, when Camel started using monster truck racing? (17) A. I just don't recall. I know we did it for a brief (t8) period of time, but I don't remember when we started it-ttnd t19),vhen-we-andedit: (20) Q. Weren't there wrestling matches that Reynolds was (21) sponsoring, or Camel was sponsoring? (22) A. You know, I think that that's possible. I think I(23) recall a wrestiing match perhaps, or maybe it was a boxing (24) match. That's possible. I just, you know, don't recall the (25) specifics of it. Page 168 (t) Q. Would that have been budgeted for, that type of a (2) promotion? (3) A. It depends If it was a - If It was a big (4) sponsorship or not. I don't remember that it was. (5) Q. Wasn't there a Tough-Man competition that was (6) sponsored by Camel? (7) A. I don't know. (8) Q. You don't know? Who would know what types of (9) events there were? (10) A. See, it all depends. You know, you're talking (11) about a period here of 1987 to the present, almost 10 (12) years. And so there were different events in different (13) years sponsored. (14) I can speak to what we're doing now, but who was 115) in charge of the brand each year and what specific events (16) went on, nobody could probably recall that because we don't (17) have a record of it. (18) Q. Of the events we just went through, none of those (19) are current? Camel doesn't sponsor those currently? (20) A. What ones are you speaking I Page 163 to Page 168 (415) 392-0650 ~,~1~ a11~~Tooker & Antz
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summarized on predictors of the onset of smoking. (3) Advertising was not mentioned. (6) The Canadian Supreme Court decision looked at (7) advertising bans across the world and their effect, and came (8) to the conclusion that there was no scientific evidence that (9) linked advertising consumption, tobacco consumption trends (10) and advertising. (11) Stewart studied 22 countries across 27 years and (12) found that advertising bans bad no effect on tobacco (13) consumption. (14) Study after study after study shows that (11) advertising does not impact the decision to start smoking. (16) Q. That wasn't my question. It was a nice answer, (17) but it wasn't my question. (18) A. You asked me about advertising effectiveness on (19) non-smokers. And it does not cause people to start smoking. (20) Q. What about experimenters? Let me change my (21) hypothetical a little bit. (22) 24 - Reynolds' key prospect is 24 to 34 year old (23) experimenter, experimental smokers. (24) MS. BIXENSTINE: Objection to the form of the (25) question. Page 180 (1) MR. JANACEK: Q. Can the - can the (2) advertising - can advertising encourage those people to (3) purchase or to select Camel as their brand? (4) A. Advertising can affect brand selection, (5) competitive switching and brand loyalty. (6) Q. So if - so if Reynolds' key prospect was 24 to 34 (7) year old experimenters, advertising could affect them? (8) A. I don't know that. I haven't studied (9) experimenters. I've done no research among it. I don't (10) know what would affect their brand choice because they are (11) In the process of experimenting with smoking. I don't know (12) what would affect them. . . (13) What I can tell you is we have studied adult (14) smokers. We have done research among adult smokers, and (15) advertising can have an effect on brand selection. Not (16) starting to smoke or smoking more, but brand selection of (17) adult smokers. (18) Q. So those experimenters could experiment with (19) Camels? (20) A. I don't know. We do not do research on (21) experimenters. (:=) Q. What - what do you think? 1 know you don't do (23) research on them. but what do you think the effects would be? (24) MS. BIXENSTINE: Objection. Calls for (25) speculation. Page 181 (1) THE WITNESS: Idon'tknow. As I've said, we (2) haven't done any research. We don't target experimenters. (3) We target adult smokers. (4) MR. JANACEK: Q. Your years of experience don't (5) permit you to opine as to the effects of a campaign that was (6) designed that way? You just wouldn't be able to - it's (7) inconceivable to you? (8) A. What's inconceivablt to me? (9) Q. The result of a marketing campaign directed at 24 (10) to 34 year old experimental smokers. (11) A. I don't know. (12) Q. You would have absolutely no basis to make any (13) determination? (14) A. I don't have a basis. I don't have a basis for (IS) It. I would have to go and talk to them and do research (16) among them like we do among adult smokers to find out what (17) affects them. (18) Q. You wouldn't - do you read the literature on (19) brand selection of people that haven't selected a first (20) brand? (21) A.people thatbaven's selected a first brand. What (22) are you talking about? (23) Q. Experimenters. (24) MS. BIXENSTINE: What literature are you talking (25) about? Page 182 (t) MR. JANACEK: Q. Any literature. (2) MS. BIXENSTINE: What - (3) MR. JANACEK: Q. You've never seen any articles (4) on why people begin - select a brand? (5) A. Why people select a brand? You mean adult smokers? (6) Q. People. (7) MS. BIXENSTINE: Objection. Are you talking about (8) non-smokers? (9) MR. JANACEK: Q. I'm talking about people. The ( l0) brand - what the process of why people select a particular (11) brand as their cigarette. (12) MS. BIXENSTINE: Objection to the form of the (13) question. I don't understand it. (14) THE WITNESS: We have done plenty of research on (lS) why adult smokers choose a brand. (16) MR. JANACEK: Q. I'm not talking about your (17) research. I'm talking about literature. (18) MS. BIXENSTINE: Objection. (19) THE WITNESS: What literature? \~1 % \ i. On what? (20) MR. JANACER: Q. Have you seen any articles (2t) or literature on th: issue of what causes people to select (22) their first brand? (23) A. What causes people to select their first brand? (24) What causes people - I don't know. (25) Q. You've never seen anything on that issue? Page 183 (1) A. I mean I can't recall. Causes of selecting a (2) first brand? You know, I've - I think there art people who (3) have tried to draw conclusions, but I - I've seen people (4) who have talked about - I've read articles that talked (5) about brand share among underage smokers who are (6) experimenters. But I don't believe they talked about why (7) you chose your first brand. (8) Q. So the answer is no, you haven't seen any (9) literature? (10) A. I can't think of any. (11) Q. Ms. Beasley, do you think the cigarette industry (12) should t.n encourage non-smokers to smoke? a (13) A. No. t~ (14) Q. Adult non-smokers? 'P (IS) A. No. N (16) Q. What about minor ' ' ~ non-smokers? _t (17) A. No. (18) Q. Do you think that the cigarette industry should (19) encourage people that have decided to smoke but haven't (20) selected a first brand - (21) A. I told you, I don't see that as a group of people. (22) Q. You don't think they should encourage - that's (23) not a target group? (24) MS. BIXENSTINE: Objection. (25) THE WITNESS: I told you I don't think that Page 184 (i) exists. I don't think there are people who have decided to (2) smoke but haven't gone and purchased product and are (3) smokers. (4) You're somehow trying to define them as a smoking (5) but not yet smoking, and I don't think that exists. (6) MR. JANACEK: Q. What about this, a smoker that (7) has not selected a usual brand. (8) A. It depends on your definition. If a smoker may (9) not be loyal to the brand they're smoking right now, they (10) may not be particularly loyal, and then we have an increased (11) chance of switching them. (12) Q. So that's all right. If they haven't selected a (13) usual brand but they've puffed on a cigarette - Tooker & Antz (45}•39?-0650 Page 179 to Page 184
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to? (:1) Q. The wrestling matches. Tough-Man competitions? (-:) A. No. (23) Q. Those aren't current evenu? (:4) A. No. (25) Q. Is someone in charge of event promotion? Page 169 (t) A. It's part of the overall Camel brand. (2) Q. Camel? So someone would be assigned to event (3) promotion? (4) A. Yes. (5) Q. Okay. Who's currently assigned as event promotion (6) at Camel? (7) A. Again, Fran Creighton Is vice president of the (8) Camel brand, and she has a number of assistants reporting to (9) her which she's divided up their responsibilities, the (10) different categories within the brand. (t 1) Q. Right. And I'm looking for the assistant that (12) would have been in charge of event promotion. (13) A. She's rotated them around recently and I could not (14) tell. I would have to go back and look at exactly who's in (15) charge of what right now. (16) Q. I suppose the person that's in charge of event (17) promotion might know a little bit more about the details of (18) event promotion than yourself? (19) MS. BIXENSTINE: Objection. (20) THE WITNESS: I don't know what you mean by that. (21) MR. JANACEK: Q. They would be closer to the (22) event promotion than you are? (23) A. What do you mean? (24) MS. BIXENSTINE: Objection. (:5) THE WITNESS: What do you mean by closer to it? Page 170 (t) IMR. JANACEK: Q. They may be working, that would (2) be what they would be doing, was event promotion. (3) A. Yes, that- if they're in charge of that, that (4) would be their job. (5) Q. And they would know what various events that they (6) were " working on were costing Reynolds? (7) A. I'm certain that they, too, would have to look it (8) up in the budget. It changes monthly. It is - that would (9) just be going back to the budget and seeing what was (10) budgeted for. (1 t) Q. But that's something they would know? i 12) A. I'm not suggesting they would know it. I was (13) suggesting that like me they would go back to the budget and (14) look it up. ' (1S) The budget changes monthly. It's not a constant (16) number that you memorize and know, (17) Q. Does the - does the budget change dramatically (18) monthly? (19) A. They can change significantly monthly. (20) Q. So Reynolds, for example, taking hypothetical (21) numbers, could change its advertising from a million dollars (22) in magazines to 4 billion dollars in magazines in any given (23) month? (24) MS. BDCENSTINE: Objection. (25) THE WITNESS: That's very ridiculous, when I gave Page 171 (1) you the ranges earlier of what we spend. So it's obviously (2) not within that range. (3) MR. JANACEK: Q. Can you give me the range of (4) average fluctuations in the budget? (5) A. No, because there is no average. It depends on (6) what's going on in the marketplace. It depends upon what (7) the competition Is doing. It depends upon what final costs (8) have come in. It depends upon how the program is working, (9) and if the estimates we made of it are correct or not. (10) Q. Poes the budget for a particular event or a(t I) particular category sometimes decrease? (12) A. Yes. (13) Q. What's the largest decrease you remember seeing in (14) the Camel brand budget? (15) MS. BIXENSTINE: Objection. (16) MR. JANACEK: Q. In any given category. (17) MS. BIXENSTINE: This is really totally irrelevant (18) and, Frank. I really think you're wasting your time and this (19) witness' time. If you want numbers, I suggest that the (20) efficient way of getting it and the accurate way of getting (21) it would be to serve interrogatories and not to badger the (22)-witness about her recollection of specific line items in (23) these huge budgets on one brand when she's senior vice (24) president on seven or eight brands. (25) MR. JANACEK: Maybe the person we should be Page 172 ()) deposing is this vice president on Camel brand. (2) MS. BIXENSTINE: I don't think that it's (3) appropriate to take - fly somebody out from Winston•Salem (4) to San Francisco to ask them specific numbers when an (S) tffiaent way of doing it without badgering that person and (6) costing Reynolds a lot of money is to just ask an (7) interrogatory•. And I suggest that the reason you're doing (8) this is for pure harassment, and that's inappropriate. (9) MR. JANACEK: The only point I would like to make (10) is that you guys designated - you guys. Reynolds, ( t I) designated Ms. Beasley as having the person most (12) knowledgeable on this information. (13) MS. BIRENSTINE: Yes, and she is most (14) knowledgeable on Joe Camel and on cost and placement and (1 S) location and demographics, all of that together. (16) MR. JANACEK: Q. So give me an estimate of the (17) average budget fluctuation on a monthly basis. (18) MS. BIXENSTINE: Objection. Asked and answered. (19) MR. JANACEK: Q. You can't? (20) A. I - you know, what I've told you is it varies (21) greatly. It varies greatly on what is happening in the (22) marketplace. There is no average. It depends upon what (23) actions our competition takes, what - how the actual costs (24) have come in for programs, how our estimates of (25) participation in the promotions have varied. It's Page 173 (1) significant. (2) Q. Can you give me a range? (3) A. No. (4) Q. You have no information that you can provide me on (5) the average (6) MS. BIXENSTINE: Objection. (7) MR. JANACEK: Q. - fluctuation? (8) MS. BIXENSTINE: Asked and answered. (9) THE WITNESS: It varies greatly. (10) MR. JANACEK: Q. Can advertising be directed at a(11) panicular target market? (12) MS. BIXENSTINE: Objection. Vague. (13) THE WITNESS: What do you mean? (14) MR. JANACEK: Q. I mean can - do you advertise (15) to a target market? (16) A. We define a prime prospect for a brand, and then (17) we direct the advertising to that prime prospect. (18) Q. What's a prime prospect? (19) A. The - a key group of consumers, in our case, (20) adult smokers, that you wish to switch to the brand. (21) Q. Are there then secondary tn N ~ N ~ t.) N ~ m Tooker & Antz (415"92-0650 Page 168 to Page 173
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BSA prospects? (22) A. Yes. (23) Q. Tertiary prospects? `iaa ini vs R.J. Reynolds Lynn Beasley (24) A. I don't know if we've ever called anybody a (25) tertiary prospect. Page 174 (1) Q. So there's basically two groups you attempt to (2) advertise to? (3) A. There are three. (4) Q. What are the three groups you attempt? (5) A. There's your current smoker, adult smokers of your (6) brand. There's prime prospect, competitive smokers. And (7) there's secondary priority prime prospect smokers. (8) Q. What are those? (9) A. It's - this is the group you would most like to (10) switch to the brand, and here's the group you would also (11) like to switch, maybe not as important but secondary. (12) Q. So you can target the advertising at these key (13) prospects? (14) A. Um-hmm. (15) Q. You can focus on - (16) MS. BIXENSTINE: Say yes or no. (17) MR. JANACEK: Q. - this - sorry. ( i s) A. Yes, we target the advertising at key prospect (19) groups. (20) Q You can focus the advertising so that it will (21) be - have a better chance of being successful with that (22) group than a different group? (23) A. Yes. (24) Q. And does advertising only affect the group that (25) you're targeting? Page 175 (1) MS. BIXENSTINE: Objection to the form of the (2) question. (3) THE WITNESS: What do you mean by affect? (4) MR. JANACEK: Q. Well, is - does it get other (5) people, other people outside the key prospects to purchase (6) Camel cigarettes? (7) A. To switch from another brand? Yes. (8) Q. Or to - well, that's stay loyal. But it's not (9) like advertising will let you only convey your message to a (10) key prospect? (11) MS. BIXENSTINE: Objection to the form of the (12) question. (13) THE WITNESS: I don't know what you mean. (14) MR. JANACEK: Q. Why don't you define for me the (15) key - the key prospects for current smokers - or I'm (16) sorry, competitive switchers that Reynolds - that Camel has (17) this year. (18) A. It's - this year lt's 21 to 24 competitive (19) smokers would be the primary target, and 26 to 34 would be (20) the secondary target, competitive adult smokers, and then (21) also current Camel smokers, adult smokers. (22) Q. Okay. What about in 1985, when the version of the (23) French Camel was used on the T-shirt promotion? (24) MS. BIXENSTINE: Objection. What about it? (25) What's the question? Page 176 (1) MR. JANACEK: Q. What's the key prospect? (2) A. What was the prospect for Camel in 1985? Is that (3) what you're asking me? (4) Q. Yes. (5) A. I'd have to go back and look. (6) Q. You weren't working on Camel in 1985? (7) A. Yes, I was. (8) Q. But you don't remember what the key prospect was? (9) A. Right. I don't remember. (10) Q. What about in 1988, when the Camel - Joe Camel (11) advertising campaign? (12) A. The prime prospect for Camel was 18 to 24 adult (13) male smokers. Secondary target was 25 to 34 adult male (14) smokers and the current adult Camel franchise. ( t s) Q. And wasn't there a further group that was 18 to 20 (16) year old smokers? (17) A. It was - the prime prospect was 18 to 24 adult (18) male smoken. Secondary, 25 to 34 and current Camel (19) smoker - adult Camel smokers. (20) Q. Now, if you were advertising the age range you've (21) given me for 1988, it was 18 to 34? Do you believe that the (22) advertising could have affected people that were not within (23) those key prospects - (24) A. What do you mean - (25) Q. - older than 34? Page 177 (1) A. When do you mean by could have affected? (2) Q. Could have got a 35 year old Marlboro smoker to (3) purchase Camel cigarettes? (4) A. To switch from another brand? (5) Q. To switch. (6) A. I think, yes. I think that's possible. We saw (7) Camel's share grow among 35-plus smokers. And so I believe (8) that the campaign could have had an effect on contributing (9) to that switching. (10) Q. So I assume your testimony would be the same with (11) respect to - 5/29/97 a 17 year old Marlboro smoker' (12) A. No. X».kV }u, (13) MS. BIXENSTINE: Objection. (14) THE WITNESS: It would not be. (15) MR. JANACEK: Q. How would it differ? (16) A. We do not do any research among those under 18. (17) We do not track them. I do not know why they make brand (18) selections. And what I do know about 3S-plus adult smokers, (19) because we track them and we have seen the effect of -(20) we've tested the campaign among them, we've seen the effect (21) of the campaign, and it has caused competitive switching (22) among adult smokers. (23) Q. So is it your testimony that the Camel campaign (24) could have had no effect on a 17 year old Marlboro smoker to (25) get him to switch to Camel? Page 178 (1) A. It could have. I don't know. (2) Q. You don't know? It may have had an effect? You (3) just don't know? (4) A. I don't know. We do not track under 18. (3) Q. And you can design a campaign in such a way that (6) it will affect the brand choices of your target or your key (7) prospects? (8) MS. BIXENSTINE: Objection. Asked and answered. (9) THE WITNESS: It will maintain brand loyalty, (10) contribute to maintaining brand loyalty and causing (11) competitive adult switching. (12) MR. JANACEK: Q. Let me ask you this: (13) Hypothetically, if Reynolds decided, for whatever reason, (14) that it wanted to - the key prospects it was looking for (15) were 24 to 34 year old non-smokers, could advertising be (16) used to get 24 to 34 - 35 year old non-smokers to select (17) Camel as a brand? (18) A. No. (19) Q. You don't think it has that abiliry? (20) .A. Advertising does not have the ability to cause (21) someone to start smoking. (22) If you look at all of the research that has been (23) done, you will see that advertising does not cause people to (24) start smoking. (2S) In the Gallop poll In 1991, In the Gallop poll in Page 179 (1) 1993, advertising was nearly non-existent as a cited reason (2) for starting to smoke. (3) In the 1994 Surgeon General report, 27 studies (4) were I Page 173 to Page 179 (415) 392-0650 Tooker & Antz 51-41q aw(A
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aSA Llangini vs R.J. Reynolds Lynn Beasley • 5i:9'97 (14) MS. BIXENSTLtiE: Objection. (15) MR. IANACEK: Q. -that's an appropriate person (16) to target? (17) THE WITNESS: No. I've told you several times not (18) that our target is adult daily smokers. (19) And there are people - and I will make this clear (20) to you - there are people in the process of brand loyalty. (21) Some are very, very loyal to the current brand they smoke. (22) Some are kind of loyal. Some are not very loyal at all. (23) The less loyal you are to your current brand the better we (24) have of switching you to our brand. (25) MR. JANACEK: Q. I wasn't asking about the Page 185 (1) research. I was asking about what you thought the industry (2) should or shouldn't do. (3) MS. BIXENSTINE: Objection. She answered your (4) question. (5) MR. JANACEK: Q. Do you think that's appropriate (6) market? (7) A. What is appropriate market? (8) Q. A smoker that has not selected a usual brand. (9) A. An adult smoker who is not loyal to their existing (10) brand is an appropriate target to try and switch to our (11) brand. An adult daily smoker. (12) Q. And what about experimenters? Do you think - (13) A. No. As I've told you, I don't think that's (14) appropriate. (15) Q. Do you think the industry should encourage a minor (16) that is a smoker, and does have a - does have a usual (17) brand, to select Camels? (18) A. No. (19) MS. BIXENSTINE: Objection. Asked and answered. (20) THE WITNESS: No. (21) MR. JANACEK: Q. So it's inappropriate to get (22) them to - to try to get them to switch? (23) A. Yes. (24) Q. And it's inappropriate to try to keep them smoking? (25) A. Yes. Page 186 (1) Q. Ms. Beasley, I'm going to go over a couple of (2) terms that were used throughout the documents, and we had (3) the deposition of Mr. Morrissey yesterday, so I think we've (4) got some. But I'll confirm what the meanings are. (5) What does UB buyer share mean? Is that usual (6) brand? (7) A. Usual brand buyer share. (8) Q. OU buyer share? (9) A. Occasional user. (10) Q. OOH? (11) A. Out of home. (12) Q. DTS? (13) A. Down the street. (14) Q. MAD? (15) A. MAD. MAD? Could be the manufacturing forecast. (16) I don't know. (17) Q. What would the manufacturing forecast be? What is (18) that? (19) A. A forecast of bow many cigarettes to produce each (20) month. I think they might call that the MAD forecast, but I(21) could be wrong on that. (22) Q. Okay. When we come to the documents we'll revisit (23) it maybe in context. (24) What about SOM? (25) A. Share of market. Page 117 (1) Q. SOS? (2) A. Share of smoker. (3) Q. SOFF? (4) A. SOFF? Share of full price category, I guess. (S) SOFF? (6) Q. We came up with share of full flavor. Does (7) that - (8) A. Oh, that could be, yeah. Probably share of full (9) flavor. (10) Q. So you think that's right? (11) A. Probably. (12) Q. SOFP? (13) A. Yeah, share of fuU price category. (14) Q.Okay. RU? (15) A. I thlnk that wss a code name for a Camel style. (16) Q. Do you remember which one? (17) A. It could have been Camel Special Lights. I'm not (18) sure on that, though. (19) Q. Okay. What about BU member field visits? (20) A. BU Is business unit. (21) Q. What would have been a business unit member field (22) visit be? (23) A. Someone who worked on the business unit going out (24) to work with a salesperson. (25) Q. And what is a business unit? Page 188 (1) A. Each - each brand, the Camel brand, all the (2) people who work on it are called the business unit. The (3) people who work on that business, the team of people who (4) work on that business. (5) THE VIDEOORAPHER: Excuse me. Counselor, we're at (6) a point where we have to change tapes. (7) MR, JANACBK: Okay. (8) THE VIDBOaRAPHER: This marks the end of Tape No. (9) 2 in the continuing deposition of Lynn Beasley. We're off (l0) the record at 2:07 p.m. (11) (Briet'recess in proceedings - 2:07 to 2:19 pm.) (12) THE VIDEOGRAPHER: We're on the record at 2:19 (13) p.m. This marks the beginning of Tape No. 3 of the (14) deposition of Lynn Beasley on May 29th, 1997, at 222 Kearny (15) Street, 10th'Floor, San Francisco, California. The video (16) operator is Steve Lettwich with Barbagelata and Associates, (17) 63 Bovet Road, Suite 410, San Mateo, California. (18) MR. JANACEK: Q. Ms. Beasley, there's a couple (19) more terms I would like to get through. FF style? (20) A. Full flavor. (21) Q. Full flavor? FFLT style? (22) A. Full flavor Ugbts. (23) Q. FSMN? (24) A. FSMN. I don't know. It doesn't - (25) Q. Virile segment? Page 189 (1) A. Yes. (2) Q. What is the virile segment? (3) A. It was based on a segmentation that was done, (4) gosh, I don't know when. Quite a long time ago. And the (5) segmentation was done based on an analysis of what brands (6) interact withh each other; what brands have the most (7) swftching between the brands. And then the - the brands (8) were grouped together on the basis of those brands (9) interacting most with each other. And then each of those (10) groups of brands was given a name. And the name for the (11) group of brands that interacted switching-wise a lot to each (12) other was called the virile segment, and it had Winston and (13) Camel and Marlboro and those kinds of brands. And they were (14) brands that tended to have masculine appeal. (1S) Q. Was It just Winston, Camel and Marlboro, or were (16) there other brands? (17) A. No, there was other brands. (18) Q. Do you recall what other brands were in the virile - (19) A. I think Lucky Strike maybe. I don't know. It's (20) been a long time, but Viceroy could have been in there. (21) It's - you know, I don't know. (22) Q. And you said it portrayed a masculine image? (23) A. They tended to - the reason they called it the (24) virile segment 4 It tended to be brands that appealed to (25) men. Page 190 (1) Q. Were there other characteristics I Page 184 to Page 190 (415) 392-0650 Tooker & Antz 5r+14 a114A
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W I1.ot11e.. 411f.n1/ im attl•»to nr.,arta 1y n. t/Qts111t l'OIIpGt. tttrwy 1:91 It \p ItwM~t tl tNlCtl fr MMI/ tf IMlllyt. 1tOtllaM(!: sTCYtt ltRl/la y0yl;(),AT. 1 ASSSI.TIS. u 1w+t 441414. trlt. t7i .10 S.. titw. C.11IInu1 f+tOt 1Qt/1)..Si07. i)u ...0... Page 5 (t) PROCEEDINGS (:) THE VIDEOGRAPHER: This marks 1 the beginning of (3) Videotape I in the deposition of Lynn Beasley, in the (4) matters of Janet C. Mangini on Behalf of General Public (5) versus R.J. Reynolds Tobacco Company, et al, in the Superior (6) Court of the State of California, County of San Francisco, (7) Case No. 939339, and Arch, et al, versus R.J. Reynolds, et (8) al, in the U.S. District Court. Federal District of (9) Pennsylvania, case number 96-CV•5903. (10) Today's date is May 29th, 1997, and the time is (11) 9:06 a.rrt. The location of this deposition is 222 Kearny (12) Street,10th Floor, San Francisco, California. The (13) deposition was noticed by attorneys for the plaintiffs and (14) the videotape is being produced on behalf of the attorneys (15) for the plaintiffs. (16) The videotape operater is Steve Leftwich with (17) Barbagelata and Associates. 63 Bovet Road, Suite 410, San (18) Mateo, California. 94402. Area Code 41S•374-3603. I'm a (19) California Notary Public for the County of San Mateo. (20) The court reporter's name and firm is Mark - is (21) that Barta? Mark Banta with Tooker & Antz. I hope that I(22) pronounced that correctly, 131 Steuart Street. (23) San Francisco, California. (24) Counsel present please identify thernselses for the (25) record and state whom they.represent. Page 6 (1) MR. JANACEK: Frank Janacek on behalf of (2) Plaintiff, Janet Mangini and intervenors. (3) MR. POLAPINK: Steve Polapink on behalf of Janet (4) Mangini and intervenors. (5) MS. LAPORTE: Elizabeth Laporte from the City and (6) County of San Francisco on behalf of intervenors in (7) Mangini. (8) MR. HOPPER: Randy Hopper for the Plaintiffs on (9) behalf of Arch in the Arch v. American Tobacco Company. (10) MS. LAPORTE: Chris L'Orange on behalf of the (I 1) Lorilard Tobacco Company, a non-party in both actions. (12) MS. BALLINGER: Dana Ballinger from Heller, Ehrman (13) on behalf of Philip Morris. (14) MS. JOHANN: Pam Johann from Howard. Rice on (15) behalf of Defendants R.J. Reynolds Tobacco Company and (16) Mezzina & Brown, Inc. (17) MS. BIXENSTINE: Kim Bixenstine from the Jones Day (18) Law Firm on behalf of the defendants in Mangini. (19) R.J. Reynolds Tobacco Company and Mezzina & Brown. In:. (_0) At the time I would like to state on the record (21) that the defendants object to the videotaping of this (22) deposition because no notice of videotaping was provided in (23) the deposition notice, as required by Code of Civil (24) Procedure 2025 (d)(5. (25). In addition. I would like to state on the Page 7 (1) record now that this deposition was cross-noticed in the (2) People of the State of California case, and that there was (3) an agreement between my co•counsel, Joe Escher, of the (4) Howard, Rice firm on behalf of defendants in Mangini and (5) R.J. Reynolds in the People case and Ms. Laporte that this (6) deposition would also be taken on behalf of the plaintiffs (7) in People on the issues relating to the Joe Camel campaign. (8) An issue arose yesterday in the deposition of Mark (9) Morrissey in the Mangini case which was also cross-noticed (10) in People about what protective order should apply in the (11) People case. (12) Ms. Laporte has agreed that she is bound on behalf (13) of the intervenors in Mangini to comply with the protective (14) order that was entered in the Mangini ease. She objects to (15) that order being entered in People. I had offered that the (16) Mangini order would govern until another order is entered in (17) the People case, and Ms. Laporte refused that offer. (18) So at this time I just want to get on my - on the (19) record our view that this is an opportunity for Ms. Laporte (20) to examine Ms. Beasley on the issues relating to the Joe (21) Camel campaign in the People case, and we will object to (22) bringing Ms. Beasley back from Winston-Salem to (23) San Francisco for a deposition in the People case. (24) MS. LAPORTE: If I could just respond. I think (25) that's generally accurate. I would just add that I do Page 8 (t) have - I disagree with the representation that there was an (2) agreement, but there was an issue that arose yesterday. (3) It's the same issue . today on this deposition as with the (4) Morrissey deposition. (S) Judge Alvarado on Friday ruled that the (6) cross-notice would be stayed unless and until we reached an (7) agreement or a referee ruled on it. (8) We served objections. We object on a number of (9) grounds, including that there's no authorization for (l0) cross-noticing under California law Page 1 to Page 8 Tooker & Antz (415a,.392-0650 51714 2102
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can't select that product? (t t) A. Right. It would be adult smokers, people who (12) already smoke and are adults. (13) Q. Isn't a goal of advertising to create an image? (14) A. That's part of brand information. When I said the (15) objective of advertising Is to communicate brand (16) information, brand information takes on many forms. (17) Q. What else is part of the brand information? ( I8) A. The brand name, product information, product (19) attributes, the image of the brand, where it's available, (20) the price of the brand. There's - the styles that the (21) brand offers. Information that's relevant to the consumer (22) about the brand is part of brand information. (23) Q. Anything else? (24) A. Sure, there are lots of things. It's - does it (25) have a brown tip or a white tip? Does it come in a box or a Page 109 (t) soft pack? Does it have light styles and full flavor styles (2) or ultra lights. Does it have 85s or 100s. • (3) Q. So what you're talking about, there's product (4) characteristics? (5) A. Sure. Package characteristics. Product (6) characteristics. Pricing characteristics. Sometimes where (') it's available. There are many different kinds of (8) information that are relevant to the consumer. (9) Q. I'm - without the specifics. I'm just trying to (10) get the general categories. Like I said, I don't (I 1) understand. I'm not a marketer, so I need to - I've got to (12) work my way through it. (13) So one aspect of brand information is product (14) characteristics. (15) A. Um-hmm. (16) Q. Another one is image? (17) A. Packaging characteristics. (18) Q. Another one is brand image? Explain image to me. (19) A. Image is the personality of the brand, what sort (20) of characteristics that you want the brand to stand for. (:1) Q. Anything else associated with image as it relates (22) to brand information? (23) A. Image is product characteristics, its character, (24) its values. It's what are the things you want the brand to (25) stand for. Page 110 (1) Q. Okay. Besides the categories of product (2) characteristics and image, what other categories would there (3) be that you would group into brand information? (4) A. Price. (5) Q. Pricing information? (6) A. Um-bmm. Sometimes promotion information. (7) Sometimes distribution information. (8) Q. Are there any other general categories that are (9) related to brand information? (10) A. Can you tel) me the ones I've told you so far? (11) Q. Product characteristics. Image and price (12) distribution. (13) A. I believe I told you packaging characteristics. (14) Q. So that would be different than a product (15) characteristics. So that's - (16) A. Yes. Product is the taste of the product. (17) Packaging characteristics are is it a soft pack, is it a (18) box, does it have 20 cigarettes in it, is it a carton with (19) 10 packs? (20) Q. Okay. I understand the difference now. (21) Any other general categories? (22) A. Where it's available for sale. (23) Q. Would that be included in the price distribution, (24) or is that another (25) A.•It could be. Did you put price/distribution? You Page lll (1) put them together? (2) Q. Right. (3) A. Well, if you put them together, it could be part (4) of that. (5) Q. Should I separate those? (6) A. Yes. They're two different things. (7) Also, history of the brand. That can be important (8) brand information. (9) Q. Any other general categories? (10) A. Those are all I can recall right now. (11) Q. Now, you say advertising can work and sometimes it (12) can't work. How do you determine if advertising is working? (13) A. For us we determine if it's working by are we (14) maintaining brand loyalty and generating competitive (15) switching, if that's the objective for the advertising. (16) Sometimes the objective is just to maintain brand (17)' loyalty. ( l8) Q. And how do you determine if you're maintaining (19) brand - let's start with brand loyalty. (20) How do you determine if you're maintaining brand (21) loyatty? (22) A. We track our share of smoker. (23) Q. Do you do anything else? (24) A. We track share of requirement. (25) Q. What is that? Page 112 (1) A. Of the - it's of all the cigarettes you smoke, (2) how many of them did you give to this brand versus other (3) brands. (4) Q. Do you do anything else to track brand loyalty, (5) or to determine if you're being successful with the (6) advertising in maintaining brand loyalty? (7) A. I would say those are two t.n quantitative measures. (8) We also a look at It qualitatively. ~ (9) Q. So those are quantitative? (10) A. Um-hmm. tv (11) Q. How do you determine - how ~ do you measure your (12) success n~ qualitatively? (13) A. We ask questions like, "Do you think your brand Is (14) the best brand?" "Do you think your brand is a better value (15) than other brands?" "Do you think your brand is better than (16) any other brand?" Those kinds of questions that indicate (17) you feel strongly about your brand as the best brand. (18) Q. Do you do anything - any other types of (19) qualitative things to verify that the advertising is (20) successful? (21) A. We do qualitative focus group work. (22) Q. Tell me a little'bit about focus groups. (23) MS. BIXENSTINE: Objection to the form of the (24) question. It's vague and overbroad. (25) THE WITNESS: What is it you would like to know? Page 113 (I) MR. JANACEK: Q. What are focus groups? (2) A. Focus groups is where you - we bring in adult (3) smokers for - it can be competitive smokers, it can be (4) smokers of the brand currently. And we talk to them about (5) the brand, about the product, about the advertising; (6) whatever it is we want to get feedback from on - with (7) consumers on. (8) Q. And that's when you ask them if their brand - (9) sticking straight to the - strictly to the brand loyalty. (10) if their brand is the best brand? That's what you were just (11) talking about would be focus group kind of stuff? (12) A. We - sometimes we ask that in focus groups, but (13) not usually. Usually we do a quantitative study. Tooker & Antz (415)392-0650 Page 108 to Page 113
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! 13) Q. So you don't have any reason to dis - to believe (14) that that's inaccurate? (13) A. Well, the only reason I would have to believe it's (16) inaccurate is that the daily - average age you become a(17) daily smoker is between 18 and 19. So I would doubt 92 (18) percent of them were regular smokers, if it was daily (19) smokers by 18. It just doesn't make sense. (20) Q. Do you know when R.J. Reynolds Tobacco Company (21) first began looking at the average ages that people begin to (22) smoke? (23) A. No. (24) Q. Are you aware that R.J. Reynolds Tobacco Company (25) did look at information that would indicate the average - Page 201 (l) the average ages by which people began to smoke? (2) A. I've seen some of these old documents, you know, (3) as a result of the FI'C thing. So I know that there are some (4) company employees, I wouldn't say the company, but there (5) were some employees who looked at the government studies on (6) the average age that people began to smoke. And I believe, (7) and I don't know, but it again depends on the definition of (e) smoking. And that's real important. Is it people (9) experimenting? Is it people who are smoking daily? (10) Q. What's the oldest document you remember seeing? ( I 1) MS. BIXENSTINE: Objection. Oldest document she (12) remembers seeing relating to - (13) MR. JANACEK: The last question. (14) THE WITNESS: What would that be? (1S) MR. JANACEK: Q. The average age that people (16) begin to smoke. (17) A. I don't know. (18) Q. You said you saw some old documents? (19) A. Yeah, I've seen some old documents. ' (20) Q. Can you give me an estimate as to the time frame? (2 t) A. No. (22) Q. 1900s? (23) A. No. I think the documents I've been looking at - (24) I don't know if I've seen anything that was written before (25) probably the '60s, so - as a result of this FTC Page 202 (1) investigation, the litigation stuff. (:) Q. But you don't use that information in your (3) day-to-day duties with - (4) A. I haven't even seen the information. I didn't (5) even - you know, until these old documents came about as a (6) result of litigation and FTC investigation. .(7) Q. Why would Reynolds have information on those (8) types, what makes.- the average ages by which people begin (9) to smoke? (10) A. You know, again, I don't know about Reynolds. (11) There were some documents written by some employees (12) reporting on government studies. So I don't believe - you (13) know, I have no Idea about Reynolds, when you say the word (14) Reynolds. (15) Were there some employees summarizing what (16) government studies said? It appears there were. (17) Q. In your role as a vice president in charge of (18) several brands, would information about when people began (19) smoking be useful to you? (20) A. No. (21) Q. It would be totally irrelevant to what you're (22) doing? (23) A. Totally irrelevant. We market to adult smokers, (24) people who have already decided to smoke. (25) Q. Can you think of any reason why you would want P Page 203 (1) that information? (2) A. Sure. There could be reasonss. (3) Q. What reasons? (4) A. You know, I think that one possible reason would (S) be if you're planning new manufacturing plants that would (6) last, you know - the planning capacity for the next 20 (7) years, and you want to get some idea of what size the (8) cigarette Industry is going to be, you might look at what -(9) what you think smoking rates are. (10) Q. And so knowing that people began smoking at 15 or (11) 14 or 13 would go into that decision? (12T'A. It would be - I think they would get - you know, (13) not - it's how many people smoke. That would be what they (14) were looking at, I would think. (15) Q. So you would need to know how many, not just the (16) average age? (17) A. Not me. I don't need to know any of that and I(18) have no use for it. I'm speculating because you asked me to (19) on what - could there possibly be a reason. (20) Q. Other than so that you can design your plants. can ( :1 )>'ou - ~ manufacturing plants. can you think of any other (22) reasons why that information would be important to (23) R.J. Reynolds Tobacco Company? (24) A. What information? (25) Q. The average age when people begin to smoke. Page 204 (1) A. You know, I don't know. (2) Q. That's about the only thing you can come up with? (3) A. I don't know. I can't think of any. I can't (4) think of anything else right now. (5) Q. But it's not relevant to marketing at all? (6) A. You know, it's not relevant to doing my job, no. (7) Q. Now, could it be relevant if R.1. Reynolds Tobacco (8) Company wanted to market its products to people selecting (9) their first brands? (10) MS. BIXENSTINE: Objection to the form of the (11) question. (12) THE WITNESS: We - (13) MR. JANACEK: Q. I know you don't. But if - if (14) hypothetically. humor me on this one - hypothetically. (IS) R.J. Reynolds Tobacco Company decides that, 'you know what, (16) we do want to get people from the very beginning. We want (17) to get that 14 year old smoker that's in the initial (18) stages.' (19) A. Experimenting? (20) Q. Experimenting. 'We want to get him.' And I know (21) your position is that you don't do that, but hypothetically (22) that that is the position. Would that information, why (23) people begin to smoke and when people begin to smoke, be (24) relevant to the marketing to that target? (25) A. If you're - speculating here, if I wanted to Page 205 (1) market to 14 year olds and 15 year olds and 16 year olds, 1(2) would have to do exactly what I do among adult smokers. I(3) would have to do development research, I would have to do (4) tracking research, I would have to talk to the people, I(S) would have to understand them, I would have to expose them (6) to the marketing we do and get their reaction. There would (7) be no other way for me to develop effective marketing (8) against them. Short of doing that, that information is (9) totally irrelevant. (10) Q. So but you would need to know when they began to (11) smoke, why they began to smoke? (12) A. No, not necessarily. What I Tooker & Antz (415~.392-0650 Page 200 to Page 205
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looked at when you were a brand manager of (l8) Camel? (19) A. Not the same questions. d20) Q. Not the same - (21) A. Like I told you, It depends on who is in charge of (22) the brand and what questions they want to ask. All I can (23) give you is a general sense of the kinds of questions you (24) ask. Each survey we ask different questions. (25) Q. And that's what I'm looking for, is a general Page 119 (1) sense. And of the general sense you can remember best (2) brand, best value. Are there any other types of attributes (3) that you would be measuring? (4) A. Those would be the key ones. Versions of those (S) questions. (6) Q. With respect to switchers - (7) A. Um-hmm. (8) Q. - how would you measure quantitatively whether (9) the advertising is effective at getting someone to switch to (10) Camel? ( I 1) A. We measure that, again, through our share of (12) smoker and share of requirement Information. (13) Q. And do you do any of the quantitative survey;. (14) like with brand Ioyalry? (15) A. We ask competitive adult smokers the same question (16) as we ask our current brand smokers with regard to loyalty (17) questions. And we find out how loyal they are to their (18) competitive brand. (19) Q. So you'd ask them if they think that they're (20) brand - (2 )) A. Their brand is the best brand and, you know, (22) sometimes, it just depends on who's doing the research and (23) what brand it is. Sometimes we've done things like chip (24) allocation, where "If you had ten chips how many of them (25) would you give to your brand versus the second choice brand Page 120 (1) you have?" (2) And then we measure occasional users. Occasional (3) users are people who don't choose your brand full'time but (4) they smoke your - they choose your brand part-time. And so (S) how many people who smoke another brand are smoking Camel (6) part-time? It's huge for Camel. It gives you an indication (7) you're moving people to Camel. (8) Q. So you also want to determine if they're an (9) occasional user? (10) A. Right. (11) Q. If they're an occasional user. I are they a(t2) switcher? (13) A. They are - it depends upon your definition of (14) switching. What I would define as a complete switch Is when (1S) you have changed and say "Now Camel's my usual brand" and (16) you're smoking It most of the time. (17) An occasional user Is someone who's still saying (18) "No, that other brand's my usual brand, but I smoke Camel (19) part time." (20) Q. So when you're talking about occasional user, (21) you're talking about an occasional user of your brand? (22) A. Right. (23) Q. Would there be any other attributes or perceptions (24) you would be measuring to determine whether or not you're (25) effective of getting people to switch to Catnel, besides the Page 121 (I) two that we identified and discussed? Best brand, best (2) value? (3) A. Well, we talked about share of smoker, share of (4) requirement. (5) Q. I'm just talking about the survey. (6) A. Okay. The survey. (7) ' Q. The quantitative survey type stuff. (8) A. Well, you are not - to see if you're getting (9) competitive switchiog? (10) Q: Right. (11) A. You know, we'd ask, "Is Camel your second choice (12) brand?" "How do you rate it relative to your current brand (13) on things like taste and value." (14) So we - we sometimes get people to compare their (15) usual brand to Camel and say, you know, "Relative to your (16) usual brand bow do you rate Camel?" (17) Q. Do you ask them what they think of the (18) advertising? That would seem an obvious proposition to me. (19) MS. BIXENSTINE: Objection to the form of the (20) question. (21) THE WITNESS: What do you mean, do we ask them (22) what they think of the advertising? (23) MR. JANACEK: Q. Well, if you're - and again, (24) from my layman's sense, if you're trying to figure out if (25) the advertising is effective or working, I would think you Page 122 (1) would ask them questions about what they thought about the (2) advertising. (3) A. What you were asking me is how do we measure (4) whether we're getting the brand loyalty and competitive t3) switching we wanted. (6) Q. No. no. What I'm asking you is how do you measure (7) if the advertising is effective in achieving your goal of (8) maintaining brand loyalty or getting switchers? (9) A. Right. And if we achieve our goal, we assume the (I0) advertising has been effective at doing that. (11) Q. So you don't ask questions about the advertising (12) itself? That's what I'm asking. That's my question. (13) A. Ob, sure, we have asked questions about the (14) advertising itself. (15) "Do you like Marlboro's advertising better than (16) Camel's advertising?" Sure, we've asked that question. (17) Q. But you guys don't - you don't use that to (18) determine if the advertising's effective? (19) A. The measure of how effective the advertising is is (20) brand loyalty, share of requirement, share of smoker, (21) competitive switching. (22) Q. So it's the dollars? It's how many cigarettes - (23) A. It's fundamentally have you achieved the (24) objectives you've set out to. (25) Q. It's are you selling the cigarettes? Page 123 (1) MS. BIXENSTINE: Objection. (2) THE WITNESS: It's have you achieved the objective (3) you've set Un ~ ~ ~ ~ tJ ~ r w out to which is to maintain brand loyalty and (4) generate competitive switching. (5) MR. JANACEK: Q. Why do you want to maintain (6) brand loyalty and generate competitive switching? (7) A. Because that's how you grow your business, or (8) maintain your business. (9) Q. You want to sell cigarettes and make money. (10) MS. BIXENSTINE: Objection. Asked and answered. (11) THE WITNESS: We want to - you know, for a (12) particular brand, what we want to do is have it grow in the (13) marketplace as opposed to decline. We want it to grow in (14) market share. (15) MR. JANACEK: Q. You want to sell more (16) cigarettes? (17) A. It - you know, again, what we base our objective (18) on is market share and how that brand is doing on market (19) share. (20) We look at the loyalty measures I've talked about (21) and the switching measures that I've talked about. Those (22) are our measures of success. (23) Q. So sales are irrelevant? Tooker & Antz (4IS)'392-0650 Page 118 to Page 123
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 5/29/97 (18) A. It was a change in the advertising execution. (i9) The campaign didn't change, but you evolve (20) executions over time. An execution Is an ad, right? And (21) you run several ads in a year. And so you evolve the look (22) of the executions. You have not changed - It's still the (23) Camel campaign, but you evolve how the executions look. (24) Q. The image it's trying to portray changes? (25) A. No. It's still the same ituage, but you - you Page 216 (1).update it. You update it with smoker changes and cultural (2) changes. It's an updated image. (3) Q. Well, let's start at the beginning. In 1988, the (4) birthday celebration, what would that image be that Camel (5) was trying to portray? (6) A. It was fun and entertaining and clever, (7) adventurous. Maybe somewhat rebellious. (8) Q. And so those, the fun, entertaining, adventurous, (9) rebellious, those characteristics continued in the 1989 (10) heroic camel? (11) A. That's right. (12) Q. It's just the way that those characteristics were (13) portrayed changed? (14) A. That's right. (15) Q. Were there any added characteristics of the 1989 (16) heroic camel era? (17) A. I think it was - in my opinion, I don't know what (18) the documents exactly say, but in my opinion It was more (19) masculine. It had more of a male feel to it. (20) Q. What about independence or conformance, the images (21) that have been tossed around with Joe Camel? (22) A. Independence? Conformance? (23) Q. Independence. Is Joe Camel trying to show (24) adventurous - (25) A. I don't believe that independence or conformance Page 217 (1) have ever been characteristics we've had for Camel. (2) Q. What about irreverence? (3) A. Irreverence? Yes. (4) Q. What other characteristics can you remember? (5) A. Authentic. Genuine. I think I already said (6) masculine. Fun. Adventurous. Experiential. (7) Q. What do you mean by experiential? (8) A. Experiencing life. Experiencing smoking (9) enjoyment. Clever, I think I said. I don't know exactly (10) which all the words are I've given you already, but - (11) Q. But independence isn't one of the characteristics? (12) A. I don't know. I don't think so. I don't recall (13) that being one of them. & (14) Q. Group acceptability? Part of a group? (15) A. That wasn't one of the core characteristics, as I(16) recall. We have - obviously, we've had Joe with other (17) camels, you know, so we've had Joe with groups. (18) Q. You said it wasn't a core characteristic. Is (19) It - but it was a characteristic of the campaign? (20) A. No, I wouldn't say that. I don't know as it was (21) ever described as - It was used In the positioning (22) statement, I don't think so. (23) Q. So there are other characteristics besides core (24) characteristics? (25) A. Those are the ones that define the image you're Page 218 (1) trying to create for the brand. (2) Are there other characteristics that people might (3) use td describe Camel? Sure. (4) Q. Not so much about other people, but who Reynolds (5) describes Camel. (6) A. I mean those are the key ones I remember that (7) we've used over the years. (8) Q. Would those all be core characteristics? (9) A. Yeah, I think so. The ones I gave you. (10) Q. And then are there additional characteristics that (11) aren't core characteristics? Secondary? I don't know what (12) the term would be. . Secondary characteristics? (13) A. No, I didn't mean to Imply that. I mean there (14) might be others that were added In one year and not in (iS) another, but those are the ones I recall as Important. (16) Q. What is a positioning statement? (17) A. It's the way you want consumers, In our case adult (18) smokers, to view the brand. Both Its Image and product (19) characteristics. (20) Q. So that's a - that's an actual statemettt, (21) something is written down that says "this is the image we're (22) trying to portray'? (23) A. It's the totality of the brand. It's Its product (24) characteristica, \NAX'3 its image, its personality. (25) Q. Are you using personality different than - Page 219 (1) differently than image? (2) A. Image? No, I'm sorry. I meant to - (3) Q. That's fine. I'm just trying to see if there's a (4) distinction. (5) A. I didn't mean to. (6) Q. So the image and the personality of the brand (7) would be interchangeable? (8) A. In general, yeah. I use them Interchangeably. I(9) don't know if everyone would, but - (10) Q. We were talking about the image of the Camel (11) campaign. What about the image of Joe Camel, is that (12) something that Reynolds is concerned about? (13) A. They're not different. The Camel campaign I've (14) been talking about is the campaign that features Joe Camel. (15) Q. I undersund that. I'm just wondering if there's (16) any distinction that Reynolds draws between the image of the (17) Joe Camel campaign versus the image that Joe Camel tries to (18) portray. (19) A. No. (20) Q. Are you familiar with the concept that - of (21) people trying to wear products as a badge? (22) A. Yes. (23) Q. Is that something that Reynolds seeks to do with (24) the Joe Camel advertising campaign, Is to get Reynolds (25) consumers to wear their cigarettes, igarettes, so to speak? Page 220 (I) A. No. No, you're not using the language correctly. (2) Q. Can you help me out? (3) A. Well, all that means, when someone says that, (4) they're wearing a brand as a badge, ls that it's a product (5) category where image is Important. So that when you pull (6) out a pack of cigarettes or wear a pair of jeans or pick a (7) brand of beer, a bottle of perfume, a car, these are product (8) categories where the image is important. And that's what It (9) means when you say it's a badge. It says that a product (10) category has an Image to it. (11) Q. So let me see if I understand you correctly. The (12) images or image characteristics we just went through, the (13) experiential, authentic, irreverence, is a Camel smoker (14) that - is this the correct usage of wearing it as a badge? (15) A Camel smoker by smoking Camel cigarettes is portraying 4 Page 215 to Page 220 (41S) 392-0650 Tooker & Antz 5i-414 ak aoA
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Reynolds Lynn Beasley - S/29/97 (:) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 137 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 138 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 139 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 140 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 141 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 142 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 143 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Pa;e 144 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 145 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) ' Page 146 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 147 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 136, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 148 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 149 (2) (THE FOLLOWING TESTIMONY, i(:2) A. That's the media we run. UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 150 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 151 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 152 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER Page 153 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 154 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS-(3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER Page 155 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 156 (2) (THE FOLLOWING TESTIMONY UNTIL PAGE 156, LINE 4 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) (4) MR. JANACEK: Right. This portion of the depo is (5) no longer under seal. ' (6) (Mr. L'Orange and Ms. Ballinger return to the (7) conference room.) (8) MR. JANACEK: Q. Who was responsible for (9) preparing the operating plan? (10) A. Fran and I are responsible for it. (11) Q. And would the operating plan break out the amount (12) of money spent on various capacities of the media campaign? (13) A. Yes. (14) Q. So it would - the operating plan would include a(tS) discussion with respect to how much money should be spent on (16) billboards, for example? (17) A. Yes. (18) Q. What categories would the operating plan Identify (19) for placement of the Joe Camel advertising campaign? (20) A. Billboards, magazines, newspapers. (21) Q. That's It? (23) Q. What about the campaign in general. The (24) categories for the campaign. So that's the media. What (25) other categories would the operating plan identify? Page 157 (1) A. I'm not sure what you're asking me, Frank. (2) Q. With respect to the money spent on the Joe Camel (3) campaign in total, marketing, promotion, whatever else is (4) involved, how much - what categories are there that would (5) need to be budgeted for? (6) 'A. Obviously, promotion and pricing. , (7) Q. So you would spend money on pricing? That's (8) something that - or is that the money that's coming in? (9) A. No. When I say pricing, what I mean Is the (10) discounts that are delivered to the consumer to stay (11) competitive with the price of other brands. We call that (12) pricing. (13) Q. Okay. Anything else? Any other categories of (14) money that Reynolds would spend? (1S) A. Those would be the major categories. Media, (16) promotion, pricing. (17) There's an other category that b Just (18) miscellaneous charges, and there's - that's - those are (19) the big ones. (20) Q. Sports marketing wouldn't be a budget item? (21) A. It's under promotion. (22) Q. Okay. What - what would be the subcategories (23) under promotion? (24) A. There would be In-store promotion. There would be (25) direct mail promotion. Event promotion. Continuity Page 158. (1) promotion. (2) Q. What's continuity promotion? (3) A. Camel Cash. (4) Q. Premium items? (5) A. It's where you collect the Camel Cash coupons to (6) get free premium Items. (7) Q. Any other subcategories? (8) A. Could you tell me what I've told you? (9) Q. I've got down in-store promotion, direct mail, (10) event promotion, and continuity. (11) A. I think that's - I think those would be it. (12) Q. Would event promotion have subcategories itself? (13) A. Yes.' (14) Q. What would those categories be? Page 136 to Page 158 (41S) 392-0650 Tooker & Antz 61+114 01,14s
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BSA Manginilvs R.J. Reynolds Lynn Beasley - 5/29/97 Reynolds? Is she consulting with Reynolds'' (21) Is she - you know, I don't know. Is she still involved (22) with Reynolds or has she completely cut her ties? (23) A. I don't think she did any work with us for quite a (24) while, but she has done - after she left, I don't know - I(25) don't know If she did work for us or not, but she has Page 226 (1) done - she has done consulting work with us, yes. (2) Q. Consulting? But she didn't like move to an (3) advertising company that's doing work for Reynolds? (4) A. No. No. But she's done consulting. She's done (5) consulting work for us, (6) Q. Recenting? (7) A. Um-hmm. (8) Q. Is she currently doing consulting work for you? (9) A. Yes. (10) Q. What is she consulting on? (11) A. She's working on - (12) MS. BIXENSTINE: I object to the extent that it's (13) trade secret. (14) MR. JANACEK: Q. Is it trade secret? (15) A. Okay. Well, let me generalize. (16) Q: Generalize. If we need to get specifics, then we (17) will. (18) A. She's looking at segmentation of adult smokers. (19) Q. What do you mean by segmentation of adult smokers? (20) A. A segmentation means that you take all adult (21) smokers and then you break them down into subgroups based on (22) similar characteristics. (23) Q. And how do you do that? (24) A. What do you mean, how do you do it? (25) Q. How do you look at the entire population of adult Page 227 (1) smokers and break it down into subgroups? (2) A. You find characteristics which they have in (3) common. Remember, I told you about the segmentation earlier (4) today where they looked at brand switching and brands that (5) switched - smokers switched most between those brands, they (6) were put in a segment? That's one way to do a segmentation. (7) You can - you find something that makes these (8) brands similar, or these set of smokers similar, and you put (9) them into segments. (10) Q. Okay. So my question was a little more basic. (11) How do you do that? Is that focus groups? Is that'- (121 A. It's usually quantitative research. (13) Q. Surveys? (14) A. Yes, usually. I'm not saying that's absolutely (15) the only way to do it, but - (16) Q. Do you know what Ms. Burrows is doing and how (17) she's approaching this. (18) MS. BIXENSTINE: Objection. This is trade secret, (19) it has nothing to do with Joe Camel or this lawsuit, and (20) it's current developmental work. And I think that it should (21) not be gone into. (22) MR. JANACEK: I've been pretty careful not to get (23) into details. I'm just trying to find out if these are (24) surveys or focus groups. (25) MS. BIXENSTINE: It has nothing - why don't you Page 228 (1) ask her if it has anything to do with Joe Camel. My (2) understanding is it doesn't, but ask Ms. Beasley. (3) MR. JANACEK: I'll get there. (4) Q. So how does that - (s) MS. BIXENSTINE: There's no reason for you to get (6) into it unless it has some relationship to the lawsuit. (7) I've told you, It's current developmental work that's trade (8) secret. There's no reason to get into It unless it has (9) anything to do with Joe Camel. So why don't you ask her (10) that? And if it doesn't, then move on. (11) MR, JANACEK: I guess if it's trade secret, we can (12) have counsel step out. (13) MS. BIXENSTINE: No, if it's trade secret and it (14) has nothing to do with the lawsuit I'm not going to let you (ls) , ask about it. If it's trade secret and it's irrelevant, (16) then you have no right to ask about it. (17) MR. HOPPER: Excuse me, Counsel, If I may, for the (18) sake of time, why don't you go out in the hall, articulate (19) to him what it's about, decide whether it falls within the (20) ambit of the Joe Camel campaign or not. If it does, then he (21) won't ask probably. If it doesn't, then he gets to ask. (22) MS. BIXENSTINE: That's what I suggested to him. (23) MR. HOPPER: And not sit here and waste the time (24) in this deposition arguing about this. (23) MS. BIXENSTINE: I suggested to him that he ask Page 229 (1) the witness if it has anything to do with the Joe Camel (2) campaign. (3) MR. HOPPER: Why don't you all VMA.X r. . go figure that out? (4) MR. JANACEK: We can take her out. (5) MS. BIXENSTINE: He can ask the question. (6) MR. HOPPER: You don't allow him as to what he (7) asks or not. This is his deposition. (8) MS. BIXENSTINE: I can instruct her not to answer (9) about trade secret (10) MR. HOPPER: You didn't instruct her not to (11) answer. You started telling him what he can ask and what he (12) can't ask. Why don't you go out in the hall and decide (13) whether it comes within the ambit of the notice or not? (14) MR. JANACEK: I see two things. We can do that. (15) Or if it's a trade secret, it if that's your objection, (16) we've got a procedure in place where counsel can leave. (17) I'll - (18) MR. HOPPER: Exactly. (19) MS. BIXENSTINE: My position is if it's trade (20) secret and it doesn't come within the ambit of notice, I'm (21) not going to let ask you about it. (22) MR. HOPPER: He doesn't know. Why don't you go (23) out and articulate it to him. He's under a confidentiality (24) order. He can't talk about it if it is. Go explain it to (2s) him if it is. Quit wasting our time. Page 230 (1) MS. BIXENSTINE: I don't - if you want to go off (2) the record, that's fine. I don't - I only know a little (3) bit about it. (4) MR. JANACEK: So you don't even know if it's (5) relevant. I mean that's - (6) MS. BIXENSTINE: My understanding is that it does (7) not relate to Joe Camel. (8) MR. JANACEK: Why don't we go off the record, Kim, (9) and whoever you want to bring with you, and Ms. Beasley, and (10) we'll see if this is an area I need to get into. ( l i) MR. HOPPER: Thank you. (12) THE WITNESS: Do you want to do that, Kim? (13) MS. BIXENSTINE: That's fine. (14) THE VIDEOGRAPHER: We're off the record at 3:13 (15) p.m. (16) (Brief recess in proceedings - 3:15 to 3:20 pm.) (17) THE VIDEOGRAPHER: We're back on the record at (18) 3:20 p.m. (19) MR. JANACEK: Okay. For the record, I'd just like (20) to say that our conversation ensued after about five minutes (21) of coaching of the witness, but I will ask general questions (22) relating to the - (23) MS. BIXENSTINE: I - I object to 6 Page 225 to Page 230 (415) 392-0650 Tooker & Antz 51-4114 a1aI P-
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d)A .•liiIlb'uu .p {~.J. j%ruy,w A..uu utaa1c• - d, -s.,. •:.,..% t. of appeal besides (2) masculine that were associated with the virile segment? (3) A. No. The whole segmentation was based on which (4) brands smokers switched between most. And those brands were (5) grouped together, and then whoever was doing it looked at (6) that group of brands and gave that group of brands a name. (7) Q. What about BDI? (8) A. Brand development Index. (9) Q. DM? (10) A. Probably direct marketing, although, you know, (11) DM's fairly common letters. (12) Q. YAO outlets? (13) A. YAO outlets. Probably younger adult outlets. (14) Q. Younger adult. (IS) A. You know, I would have to see the document, but (16) that would be my guess. (17) Q. Right. What about MDD? (18) A. MDD. That may have been the initials for our (19) marketing research department at one time. (20) Q. What was that department? (21) A. I think it could have been - now, I'm not sure on (22) this, it could have been marketing development department. (23) Or - I don't know. I think it may have been at one time, (24) though. (25) Q. How about Project LF? Page 191 (1) A. You know, I'm not sure on this. LF. Could have (2) been Camel Lights. (3) Q. Study 17S? (4) A. Gosh - (5) Q. It doesn't sound familiar? (6) A. Doesn't ring a bell. (7) Q. Very young adult? (8) A. Very young adult? I have no idea. (9) Q. Earlier you testified that people - the average (10) age that people experiment with smoking was 16 to 17, and (11) that daily smoking was 18 to 19. What about initiating (12) smoking? Is there an average age that you're , aware oi" (13) A. I think when I say experimenting with smoking, and (14) I believe I said it was 15 to 16 - (15) Q. 15 to 16. (16) A. Experimenting with smoking, that is what I meant, (17) experimenting with smoking. (18) Q. What about initiating smoking? (19) MS. BIXENSTINE: Objection. Asked and answered. (20) THE WITNESS: To me. there's - there's two (21) categories. There's experimenting with smoking and then you (221 become a daily smoker. (23) MR. JANACEK: Q. With respect to Project LF, how (24) do you pick your letters? What's - what's the significance (25) of LF? Page 192 (1) A. Most of the time It was arbitrary. Once •in a(2) while they meant something, but sometimes they only meant (3) something to the person who came up with it. (4) Q. So is it just a random selection of letters? (5) A. Yeah, it's whoever was in charge of the project. (6) And the letters might have meant something to them. They (7) also could have been random. (8) Q. Do you know what LF meant? (9) A. I don't think it meant anything, but I'm not (10) positive on that. (11) Q. Ms. Beasley, do you know that the FDA described (12) smoking as a pediatric problem? (13) A. I'd heard that. (14) Q. You had heard that? Do you agree with that (15) characterization? (16) A. No. (17) Q. Why don't you agree with that characterization? (18) A. It - I don't understand what it means. And 1(19) don't see how It would bt. (20) 1 don't know what - you know, I just heard it on (21) the press - in the press, and it doesn't sound right to me. (22) Q. It just doesn't sound right? (23) A. Calling people experimenting with smoking a ped - (24) pediatric disease, I don't get. What's the disease? I(25) don't know. It doesn't make sense to me. Page 193 (1) Q. You just don't think - it's the disease part (2) you've got a problem with? (3) A. I guess. I - what does the word pediatric mean? (4) Doesn't it - do you know? (5)' Q. Minors. (6) A. Oh, well, I guess that would fit, then, if they're (7j talking about - pediatric wou)dt'it if they're talking (8) about a certain age group. But I don't see how pediatric (9) disease makes sense. (10) Q. Are you aware of a study called TAPS II? (tt) A. Yes. (12) Q. When did you first become aware of the TAPS II (13) survey? (14) A. I think the first - back in the early '90s when (15) the FTC was investigating the Camel campaign the first time. (16) Q. Did you review that study? (17) A. Again, for our - when we met with the FTC there (18) were people there who reviewed the TAPS research. So I was (19) exposed to it. (20) Q. You generally know what the study's about? (21) A. Right. I don't know a lot about it, no. (22) Q. Now. FDA - are you aware that the FDA cites TAPS (23) II as showing that the average teen smoker initiates smoking (24) at 13? (25) A. No. Page 194 (l) Q. You're not aware of that? (2) A. No. (3) Q. Do you generally believe that the TAPS 11 survey (4) is accurate? (5) A. I don't know. (6) Q. Do you have any reason to think that the TAPS 11(7) survey is not accurate? (8) A. See, I don't know. You know, I - I haven't (9) studied what they did and the methodology and all that. (l0) Q. In your conversations and whatever review you did (11) have of the TAPS A study, did it strike you as being (12)inaceurate? (13) MS. BIXENSTINE: Objection. Asked and answered. (14) THE WITNESS: You know. I don't know. It's not (15) like I reviewed how they did the study and everything. 1(16) can't speak to that. (17) MR. JANACEK: Q. Are you aware of the Center for (18) Disease Control's 1992 risk behavior study? (19) A. 1992? I don't - that doesn't ring a bell with me. (20) Q. Were you involved at all with the FDA in the (21) rule-making process and the comment process? (22) A. In the rule-making or comment process. No. I was (23) involved to the degree that I helped our legal department (24) respond to what would be required to comply with the rules (25) they set out. And, you know, trying to understand what the Page 195 (1) rules were. (2) Q. But you weren't involved in gathering information (3) or presenting comments by R.J. Reynolds Tobacco Company to (4) the FDA? (5) A. No, unh-uh. (6) Q. So you don't have any - (7) A. You know, there were comments back to them about (8) what it would take to comply with what they were asking (9) for. You Ln tr J r ~ N r r 00 Tooker & Antz (s1S}392-0650 Page 190 to Page 195
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.an ..:~.... •a ...v. ...; uyius------ .. L; uu ucsa.c. • ]i ;r/r1 that. I had to (24) ask the witness what the segmentation study was so I could ta) assess - Page 231 (1) MR. JANACEK: Whether or not- (2) MS. BDCENSTINE: - one, whether it was covered by (3) the deposition notice in this case, and two, how (4) competitively sensitive the information was. (5) MR. JANACEK: And again - (6) MS. BIXENSTINE: Or is. (7) MR. JANACEK: Q. And again, that's a ridiculous (8) objection with respect to us, since we are not competitors. (9) So whether or not it's competitively sensitive is not a (10) grounds for objection to the - (11) MR. HOPPER: And I would add because we're all (12) under protective orders. We're privileged to that (13) information. (14) MR. JANACEK: Q. Ms. Beasley, what type of - (15) generally, what is Ms. Burrows doing? (16) A. It's a segmentation of adult smokers. (17) Q. And what's the general thing that she's looking at? (18) A. She's segmenting adult smokers. (19) Q. Segmenting them into what? (20) A. Subgroups, based on similar characteristics. (2 () Q. Is part of what she's doing related to the Camel (22) cigarette brand? (23) A. It's - she's segmenting adult smokers based on (24) similar characteristics, and then she profiled what brands (25) those subsegments of smokers smoke. Page 232 (1) Q. So she's trying to determine for Reynolds what - (2) what brands the adult population is currently smoking? Do I(3) have that correct? (4) A. No. No. (5) Q. No? (6) A. No. No. (7) Q. Okay. Just in a general description of what it is (8) she's trying to segment them into? • „ (9) A. She's - a segmentation of adult smokers. You're (10) breaking them up into smaller subgroups ' based on similar (11) characteristics. (12) Q. And what - I understand that. But what are the (13) characteristics that she's looking at generally? Is it (14) brand preference? Brand wants? (15) A. No. It's personality characteristics. (16) Q. So it's a personality? (17) A. Um-hmm. That's correct. (18) Q. And you said adult smokers? (19) A. Cm-hmm. (20) Q. Do you have an age range on that:' Is that the - (21) A. You know, I'm assuming it's 21 to whoever smokes. (22) Could be - you know, I don't know - I just don't remember. (23) Maybe it's 21 to 34. It's - I don't know. (24) Q. Okay. And this is a current survey or current (25) study? Page 233 (1) A. Um-hmm. (2) Q. Current consulting arrangement? (3) A. Um-hmm. (4) Q. Has she done consulting on other projects after (S) she left R.J. Reynolds Tobacco Company? (6) A. I don't recall any. (7) Q. Do you know when this current consulting project (8) began? (9) A. I think late last year. (10) Q. Did you recall Ms. Burrows' title when she was (11) working at Reynolds? (12) A. She was in the marketing research department. I (13) don't know what her title was. (14) Q. Do you know what her - what her job description (1S) was? (16) A. She was in a strategic research group that looked (17) at strategic issues. (18) Q. What do you mean by strategic issues? f (19) A: Large issues regarding our business. (20) Q. For example, setting the parameters of your key (21) prospects? (22) A. No. No, no. (23) Q. That wouldn't be strategic? (24) A. No, no. That's a brand decision. That's not a (25) strategic decision. That's a brand decision. Page 234 (I) Q. What is a strategic decision? (2) A. She would be looking at the overall cigarette (3) market and what are big dynamics going on, or that sort of (4) thing. (5) Q. What do you.mean by the big dynamics going on? (6)' A.'You know, are a lot of people moving towards light (7) cigarettes? Is that what we see in the future? Which (8) brands are growing and which brands are declining over time (9) and why? More fundamental of the total market issues. (10) Q. What is that information used for? Why would you (11) do what's happening in the market? Why would you look at (12) that? (13) A. In case you uncover something that's important. (14) Q. Like what? X .I .•c .. ttsi MS. BI\ENSTt-NE: Objection ta ~ the form of the (16) question. (17) MR. JANACEK: Q. You can answer. (18) A. What do you mean by like what? (19) Q. Well, what I mean by like what. you said in (20) case - you're looking for something important. What are (21) you looking for? (22) A. A big trend that's going on. A• trend like smokers (23) are moving towards light cigarettes, or these brands are (24) declining and these brands are growing. Major - you know, (25) people prefer box packaging instead of soft pack packaging. Page 235 (1) Major trends in the market. (2) Q. Who's smoking and who's not smoking? (3) A. No. (4) Q. That wouldn't be - Ln (5) A. It's about adult smokers. t-4 (6) Q. Which adult smokers are ~ ~ smoking and which adults (7) are not a, smoking? N (8) MS. BIXENSTINE: Objection. N (9) THE WITNESS: No. N N (10) MS. BIXENSTINE: Asked and answered. (1 t) THE WITNESS: We do research on adult smokers. We (12) study the preferences of,adutt smokers. (13) MR. JANACEK: Q. Have you seen other reports that (14) are similarly titled, the Strategic Research Report? (IS) A. I told you that, you know, the FTC showed me -(16) has a document. I don't think it's this exact one, but it's (17) similar. (18) Q. So there are other types of strategic research (19) reports? (20) A. Again, as I've said, I've seen that other one. (21) Q. Do you know if strategic research reports are only (22) done by that strategic group you were just describing? (23) A. I think so. I think those are the only ones who (24) did it. I don't know. (25) 'Q. What was the name of that group again? Page 236 (1) A. I think it was strategic research. I don't - (2) Q. Is that a group? A division? A department? (3) A. I think it was a group within the marketing (4) research department. That's what I think. At this time. (5) Q. At the bottom, it says published by the marketing (6) development Tooker & Antz (415).:392•0650 Page 230 to Page 236
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esA -,langint vs K.J. Keynoltls Lynn tseas(ey - 5/29%'J / (I3) Q. Let's start with the marketing development (19) department. What was its function? (20) MS. BIXENSTINE: Objection. What period of time? (21) MR. JANACEK: Q. While it was in existence. (22) A. You know, I honestly don't know exactly when the (23) name changed. Let's see, at this time, I believe it was (24) marketing research, forecasting. (25) Q. What do you mean by forecasting? Page 242 (1) A. They would forecast how many units they thought we (2) were going to sell each year and do the forecasts for (3) manufaeturing on how many units to make. I think that's (4) basically what they were. (5) Q. And with respect to research, what type of (6) research? (7) A. They did tracking research, share of market and (8) MSA shipments and share of smoker. Worked on development (9) research with the brands. This kind of strategic research (10) (indicating). Product research. • (11) Q. When you say tracking research, what - what are (12) you talking about? (13) A. You know, I told you about ,ti1SA shipments. (14) Q. What are those? (IS) A. You know, those are our shipments to direct (16) accounts and wholesalers. How much product we ship and sell (17) to direct accounts and wholesalers. (18) Q. What does MSA stand for? (19) A. Oh, gosh, I don't know. You've got me. I can't (20) remember. (21) Q. Okay. (22) MS. BIXENSTINE: You covered that in the (23) deposition of Marvin Martin over a year ago, Frank. (24) MR. JANACEK: Q. And then share of smoker (2S) research. What type of research is that? Page 243 . (1) A. Remember, we talked about that. That's where we (2) track how many smokers claim each brand Is their usual brand (3) and how many use it as - on an occasional basis. (4) Q. Do you know how that's done? Would I need to talk (5) to someone at the MDD, the market development department? (6) A. It's telephone surveys. (7) Q. Exclusively telephone surveys? (8) A. I don't know. I think so. (9) Q. Someone over at marketing development would be (10) able to tell me that? (11) A. Well, there's not a marketing development (12) department. It's a marketing research department. (13) Q. Marketing research? (14) A. (Witness nods head.) (15) Q. You said development research. What's that? (16) A. That's where we do focus groups on - and try and (17) develop advertising or promotions. (18) Q. Ms. Beasley, the other title on this document is (19) Younger Adult Smokers: Strategies and Opportunities. (20) A. Um-iamm. (21) Q. What's a younger adult smoker? (22) A. How I have used it is 18 to 24 adult smoker. (23) Q. How you have used it when? Today or forever? (24) A. During my career. (25) Q. So to you. a younger adult smoker is 18 to 24? Page 244 (1) A. Well, what I can say Ls it was 18 to 24 up-until (2) we changed to 21, and now It's 21 to 24. I should say that. (3) Q. Okay. So what about a young adult smoker? (4) A. I guess it would be the same thing. /k younger-(S) I believe I've usualfy used younger adult smoker. But my (6) definition of young adult smoker would be 18 to 24 adult (7) smoker, as well. (8) Q. Mr. Morrissey testified yesterday that prior to (9) the - or yes. prior to the 1992 directive about no longer (10) looking at 18 to 21 year olds, there was another group, 18 (11) to 20 year olds. Would those be younger adult smokers? (12) MS. BIXENSTINE: Objection to the characterization (13) of Mr. Morrissey's testimony. (14) You can answer. (15) THE WITNESS: Again, to me, younger adult smokers (16) were always 18 to 24 adult smokers. (17) MR. JANACEK: Q. Did Reynolds have a prime (18) prospect of 18 to 2D year old smokers at any point in time (t9) during the Joe Camel campaign? (20) A. I think it was 18 to 24 and then 21 to 24 when we (21) changed. (22) Q. 18 to 20? (23) MS. BIXENSTINE: Objection. Asked and answered. (24) THE WITNESS: Its prime prospect was 18 to 24 (25) adult smokers. Page 245 (t) MR. JANACEK: Q. Did Reynolds ever have a segment (-) that it was looking at that was 18 to 20 year olds with (3) respect to the Joe Camel advertising campaign? (4) MS. BIXENSTINE: Objection to the form of the (5) question. (6) THE WITNESS: Could you ask the question again? (7) MR. JANACEK: Q. Sure. Why was - did Reynolds (8) ever look at 18 to 20 year old smokers? (9) A. We did research among 18 to 24 year old smokers, (10) 25 to 34 year old smokers, Camel smokers of every age, in (11) the development of the Camel campaign. (12) Q. What about 18 to 20 year old smokers? (13) A. Well, sure, they're part of the 18 to 24 year old (14) group. (15) Q. So they would be segmented out and studied (16) separately? (17) A. Not necessarily. We may have had some groups (18) where it was 18 to 20 and some groups where it was 21 to 24 (19) and some groups where it was 18 to 24. I mean I don't (20) really remember. It was 18 to 24, though, was the (2I ) primary - prime prospect. (22) Q. And you don't recall ever discussing the targets (23) or the prospects in terms of 18 to 20 year olds? (24) A. The prime prospect was 18 to 24. You know, I(23) think we probably did some focus groups maybe where we did Page 246 (1) 18 to 20 and then 21 to 24 and then 25 to 34 just because (2) people of different ages have an undue influence on people (3) younger than them, and people younger in the focus group (4) tend to say what the people older than them say. So you (5) need to separate them out. (6) Q. If you can look at the very next page, it's an (7) abstract. (8) A. My very next page is this one (indicating). (9) Q. I'm sorry. I've got an extra page. I'm looking (10) at the abstract. Is that not there? ( I t) A. This? The next I have - Ln (12) Q.0463? ~ ~ (13) A. Not what this says. i-A (14) Q. I will have to get another document, then. ~' r (1S) Who is R.C. Nordine. N (16) A. Dick Nordine. W (I7) Q. Who is Dick Nordine? (18) A. I think at this time - he's not with Reynolds (19) anymore - but I think at this time he was Diane's boss. Tooker & Antz (413) 392-0650 Page 241 to Page 246
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. - •\t.,/V.Yi L...... ./vYi1c• -I.I / ~:\S,N; - (16) himself as adventurous and irreverent and fun? (17) A. Yeah, he's not necessarily portraying himself as (18) that. Why do people pick a brand? They pick it for product (19) characteristics, they also pick it for brand (20) characteristics, the authenticity of Camel. And sometimes (21) they pick it for image, as well. It's not even (22) necessarily - necessarily that they think they portray that (23) image. It could be that that's - that they know someone (24) who smokes that brand. You know, there's just a zillion (25) reasons. Page 221 (1) Q. I understand that. But aren't they making a (2) statement? Don't you want people to be making a statement (3) by smoking Camel cigarettes? (4) A. No, that's not the objective of the advertising. (5) The objective of the advertising is to create - (6) you know, to provide this brand information, the brand image (7) and the product characteristics. And that people will (8) want - that that information will be important to them and (9) they'll want to choose the brand on the basis of that. (10) Q. I direct your attention to page 59, 059 of (11) Exhibit - Exhibit 4. (12) A. Um-hmm. (13) Q. See the heading that's reasons for selecting a (14) first usual brand? (15) A. Um-hmm. (16) Q. See the primary causes section about user image? ( t7) A. Are you in number 1? Is that where you are? (18) Q. Right. Number 1. (19) A. Um-hmm. (20) Q. Is that a generally accurate statement of your (21) understanding of (22) MS. BIXENSTINE: Which statement are you directing (23) her to? (24) MR. JANACEK: Q. Number 1. The primary causes. (25) It would be 1 and 2. Page 222 „ (1) A. I would say this for adult smokers - that's the (2) only people I've done research among - for adult smokers, (3) why they choose a brand. Why they choose a brand Is - 1(4) would agree it's product characteristics. I would agree (5) that it's - I wouldn't say it this way, that they wear (6) their cigarettes. But for adult smokers, certainly part of (7) it is the image that brand portrays, the image and product (8) characteristics of that brand are key determinates in (9) picking that brand. There can be many others. Those are (10) not the only ones. But I think those are two important (11) ones. (12) Q. What about the original statement up at the top. (13) that the more closely a brand fits the psychological and (14) physiological needs, the more likely the brand will be (15) selected? Do you agree with that statement? (16) A. I have no idea what that means, what they're even (17) trying to say. (18) Q. You have no opinion as to - (19) A. Really, I don't know - (20) MS. BIXENSTINE: Objection. (21) THE WITNESS: I don't know what they're trying to (22) say there. Who knows. Agency philosophizing. I don't (23) know, (24) MR. JANACEK: Q. I'll show you a document that's (25) been previously marked as Plaintiff's Exhibit No. 5. Just Page 223 (1) take a look to see if you've seen that document before or (2) not. (3) A. Do you want me to read the whole thing? (4) Q. Just enough to familiarize yourself with it and (5) see if you've seen it before or not. (6) A. You know, I don't know if I've seen thi;exact (7) document. Certainly, the FTC pulled a document on this same (8) subject that looks similar. I don't know if it's the exact (9) same pages or not. It looks close, but I don't - it (l0) doesn't look exactly the same to me. (11) Q. But if you've seen it anywhere, you've:een it in (12) response to the FTC providing it to you? (13) A. Well, obviously our lawyers showed it to me but (14) the FTC had pulled it. I mean I didn't get there and the (15) FTC showed It to me. (16) But this document and the one the FTC had, which 1(17) don't know how they're exactly different. I had not seen at ( l8) the time. You know, theke - this was 1984. 1 had not seen (19) the document they had either, but as I explained to the FTC, (20) 1 was exposed to the subject matter in a presentation. (21) Q. Where was the presentation? (22) A. What do you mean, where? Physically where? (23) Q. Yeah. You said you were exposed to the subject (24) matter of this particular document or a document like this. (25) A. (Witness nods head.) Page 224 (1) Q, Where and when was that presentation? (2) A. I'm thinking it was around 1984. I'm not sure of (3) that year, but probably around 1984. And it was a meeting (4) at Reynolds with I believe Diane was presenting, and she did (5) a presentation on her conclusions. (6) Q. Who else was there? (7) A. Other marketing people. (8) Q. Do you remember any one in particular? (9) A. No. It was just- (10) Q. Was your boss there? (11) A. I don't know. Really, I did good to remember the (12) meeting. (13) Q. Do you remember if any of upper management was (14) there? (15) A. Kind of doubtful. I don't know, but it's kind of (16) doubtful. They usually had their own meetings, so I don't (17) know. (18) Q. Do you remember approximately how many people were (19) there? (20) A. No. Really, I don't. (21) Q. Was it a large meeting that filled a room? (22) A. It was probably - no, I wouldn't say It filled (23) the room. Who knows. You know, again, I don't recall (24) exactly, but certainly it was probably more than five and (25) less than probably 30. 1 don't know. Page 225 (I) Q. Who is Diane Burrows? (2) A. She was an employee for the company. She worked (3) in - you know, I don't know what her - it was part of (4) marketing research. She was part of the marketing research (5) department, I believe, at this time. (6) Q. Do you know, is Diane Burrows presently an (7) employee of R.J. Reynolds Tobacco Company? (8) A. No. (9) Q. When did she stop being employed by R.J. Reynolds (10) Tobacco Company? (11) A. Gosh, I don't recall exactly. You want = (12) Q. Can you give me an estimate? (13) A. Yeah, I was going to say, you want an estimate (14) here? Gosh, I think it's been at least four years. Maybe a(15) lot more. I - I can't remember. It's been quite a while. (16) Q. Do you know if she - if Ms. Burrows is still (17) affiliated with Reynolds in any way? (18) A. What do you mean by affiliated with Reynolds? (19) Q. Is she - has she moved on to a company that is (20) doing work with Tooker & Antz (415),392-0650 Page 220 to Page 225
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BSA Mangini vs R.J. Reynolds Lynn Beasie`~ - 5/29/97 V,,.~,~,44 i20) Q. Do you know what his title (14) Q. Have you heard that statistic that you disagree (9) with her more would have been? before? often than not? (21) A. No. (15) A. It could have been In the other (10) A. No, I wouldn't say that. (22) Q. Do you know when he left document, too, you (16) know. So I (11) Q. Did you read the next Reynolds? may have seen it before. paragraph, the one that (12) started with (23) A. Oh, gosh. I don't know. Quite (17) Q. Do you agree or disagree with "thus". a few years ago. (24) I don't the statement that (18) was made by (13) A. Um-hmm. remember exactly when. Ms. Burrows in this document, that only (14) Q. Okay. This document (25) Q. Do you know if it was sodn after five (19) percent of smokers start after concludes that today's (15) younger the 1984 report age 24? adult smoking behavior will determine Page 247 (20) A. You know, I don't know. I just the trend of (16) the industry volume (1) or before the report or - - I don't knOw (21) about that. over the next several decades. Is that (2) A. No, no. No, no. I believe he (22) Q. You don't have any opinion on (17) a concept you're familiar with? was still with the (3) company In'88. whether that's (23) correct or incorrect? (18) A. It could have been in the other So he probably left sometime in the (24) A. I don't know. I haven't - I document. '90s. (4) Or maybe '89, but probably don't know where (25) that came from (19) Q. I'm not talking about whether in the '90s. I imagine he left (5) and I guess I haven't seen any recent you've seen It (20) before, but is that a sometime In the'90s. Page 249 concept that you're familiar with, (21) (6) Q. If you could turn to page 2 of (1) government study that I recaU that young adult smokers will determine your document, the (7) page 2 with the talking about that. the future of the (22) brand? page number. Not the small i's? (2) Q. Do you know Ms. Burrows? (23) MS. BIXENSTINE: Objection. (8) A. Okay. Not the small i's. So (3) A. Oh, yes. Misstates the (24) document. not these things (9) that have i's on (4) Q. Do you think she's a competent (2S) THE WITNESS: It says over the them? researcher? industry. Volume (10) Q. Right. Next page should be 2, I (5) A. Yes. Page 251 believe. (6) Q. So if she said - if she told you (1) over the next several decades. (11) A. Okay. something, you (7) would have - you (2) 'MR. JANACEK: Q. Over the (12) Q. Have you got it? would tend to believe het? industry, then? (13) A. Got It. (8) MS. BIXENSTINE: Objection. (3) A. You know, I don't know. She (14) Q. If you could take a look at the (9) THE WITNESS: She - she didn't goes on to - well, I(4) think it's one heading that says (1S) Volume. See tell me this, and (10) if she were here determinate of industry volume. that number 1 there? she could tell me how she got to this That's what (5) 1 think. That's my (16) A. Yes. (11) data. opinion. (17) Q. Take a second to read through (12) Again, she may have been using (6) It b- It Is not a determinate of the volume section. (18) Have you read • the first time (13) people experiment Camel's (7) volume, and we do not that? with smoking. She may have been need underage smokers to smoke. (19) A. Um-hmm. Yes. using (14) some old govetytment study There (8) are 44 million adult (20) Q. This indicates that, at least in that's outdated. I have no idea. smokers, and Camel has but five 1984, Ms. Burrows (21) from the (15) MR. JANACEK: Q. Well, that percent (9) of them, so Camel can strategic research department had wasn't my question. (16) My question grow endlessly by attracting concluded that (22) less than one-third was if she told you something would switchers (10) from other brands. of smokers start after the age of 18. (23) you tend to (17) believe her? (11) So It you talk - it's very different Are you familiar with that statistic? (la) A. As with anyone, If they told if you talk (12) about the industry or a (24) A. I think it was In the other me something it's not (19) a matter of brand or a company. What is true of document that the FfC (25) had. So I whether it's right or wrong, I'd say, (13) the industry is not true of a brand saw It there. you know, (20) where did you get that and It is not true of a (14) company. Page 248 information? Where did It come from And It's wrong to characterize It as (1) Q. Do you agree or disagree with (21) and what's your confidence level that. the conclusion that (2) was reached by In it? (15) Q. So you can build share through Ms. Burrows? (22) Q. Have you had those types of switching? (3) MS. BIXENSTINE: Objection to conversations with (23) Ms. Burrows? (16) A. Absolutely. the (4) characterization. (24) A. Oh, sure. (17) •Q. Did you read section 2? (5) THE WITNESS: You know, I don't (25) Q. And as a result of those (18) A. No. know about what (6) she - I really don't conversations, have you (19) Q. Go ahead. know. Page 250 (20) A. Okay. I've read it. (7) What I - what I believe to be true is (1) consistently agreed or disagFeed (21) Q. You see it talks about annual that the (8) average age of daily with the results that (2) she -- after she gains from the 'new• (22) market? smoking is 18 to 19. So this doesn't (9) explains how ahe got there? (23) A. Um-hmm. make sense to me. Maybe she was (3) A. Sometimes we agree, (24) Q. What is the 'new" market? talking about when people (10) sometimes we disagree. (25) A. I believe what she means here experiment with smoking. I have no (4) Q. Do you agree more than you Is that every year a idea. disagree or vice versa? Page 252 (11) MR. JANACEK: Q. Do you see the (5) MS. BIXENSTINE: Objection. (1) group of people turn 18 and they second bullet (12) part that only five (6) THE WITNESS: I don't know. are adult smokers. So it's (2) not that percent of smokers start after age 24? We've certainly (7) disagreed on things. they're necessarily new smokers. (13) A. Um-hmm. (8) MR. JANACEK: Q. Would you say It's they are now (3) In the adult Page 246 to Page 252 (415) 392-0650 Tooker & Antz P~i_414 a)a3A
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BSA `Tangini vs R.J. Reynolds understand what I'm saying? lto) Q. Right. You were involved in what Reynolds would (11) have to do to implement their - or to - (12) A. To comply with what they had put down as rules and (13) what they meant. (14) Q. But you weren't involved with whether or not the (15) rules were a good idea or a bad idea? (16) A. No. (17) Q. Are you - you're not aware of the 1992 risk (18) behavior study. Are you aware of the FDA's conclusion that (19) the average smoker begins smoking in early teens,or even (20) preteens? (21) A. No. (22) Q. You haven't heard that? (23) A. (Witness shakes head.) (24) Q. Do you agree with that conclusion? (25) A. No. Again, the information I've seen is that I Page 196 (1) believe experimentation, the average age of experlmentation (2) with cigarettes is between 15 and 16, and the average age of (3) daily smoking is between 18 and•19. (4) Q. You said average age of experimenting with (5) cigarettes is 15 and 16. Do you have any information (6) regarding the outside ranges that came to that average? (7) A. No, I don't know. (8) Q. So there would be people that would be younger (9) than 15 that might be experimenting with cigarettes? (10) A. It would appear so, but I don't know. (i l) Q. You also mentioned daily cigarette smokers. (12) A. Um•hmm. (13) Q. What - how do you define that? (14) A. It's people who smoke cigarettes daily. (15) Q. How many cigarettes daily? Does it matter? (16) A. It can. But to us it's daily smoking. Now, (17) most - I think most of the research we do, we screen for 10 (18) or more cigarettes, but I think on some of the government (19) studies it's one or more a day. I'm not really sure. But (20) the point Is that they smoke every day. (21) Q. What if they smoke every other day? (22) A. We - (23) MS. BIXENSTINE: Objection to the form of the (24) question. What about it? (25) MR. JANACEK: Q. What would you call them? Lynn Beasley • S/29/97 \„ 41\ ,-9. Page 197 (1) A. I would not call them daily smokers. (2) Q. Right. What would you call them? (3) A. I don't know. I don't have a name for them. We (4) talk to daily smokers. We screen for daily smokers and so I(3) don't know. (6) Q. Do you have a definition of regular smokers? (7) A. Daily smokers. (8) Q. So you're not a regular smoker unless you're (9) smoking every day? ( l0) A. Daily. (11) Q. What if you smoked, like I said, every other day? (12) That would not be a regular smoker? (13) A. You know, we don't ask that, but no, we look for (14) daily smoking.. (tS) Q. Why did you select daily . smoking? (16) A. Because we - (17) MS. BIXENSTINE: Wait, objection. You, meaning (18) Reynolds? (19) MR. JANACEK: Q. You, meaning Reynolds. (20) A. You know, I - gosh, I don't know. I wasn't (21) involved with that. But. to me, my opinion is that someone (22) who's smoking daily has obviously made the decision to (23) smoke, and we want to talk to people who - we want to (24) market to people who have already made the decision to smoke (25) and who are, adults. And I think that's a very good Page 198 (1) indication that they have made the decision to smoke. (2) Q. So to you, if someone smokes cigarettes every (3) other d;y, they would not have made the decision to smoke? (4) A. You know, I don't know. I suppose there could be (5) an individual that did, you know. For some reason they have (6) a strange work schedule but what we screen for is daily (7) smoking. We think it's a good indication of - (8) Q. Right, and you said - (9) A. - someone who's decide today smoke. (10) Q. Right. And you said itryour opinion that's a good (11) definition. I'm just trying to figure out what your opinion (12) would be of people that don't smoke every day but smoke (13) regularly? (14) A. They - you know, obviously there could be people (IS) who smoke every other day and they can't - they can't or (16) don't want to smoke on the odd day and have made the (17) decision to smoke and are smoking regularly. But we (18) don't - it would be too difficult to screen people that (19) way. (20) The definition for us is daily smoking, and that (21) gives us a good way to screen people. (22) Q. Do you look at a number of cigarettes in a week, (23) for example? (24) A. No, I don't believe so. I believe we ask people (25) how many cigarettes they smoke in a day. Page 199 (t) Q. Are you aware of the conclusion in the literature (2) that 3,000 young people become smokers every day? (3) A. I've heard that number, I think like in the media (4) thrown out. (S) Q. Do you agree with that number? (6) A. I - (7) MS. BIXENSTINE: Objection. Whit do you mean by (8) young people? (9) THE WITNESS: What do you mean by young people? (10) MR. JANACEK: Q. I don't, since I didn't write (11) the study. But the conclusion is that 3,000 young people (12) become smokers every day. (13) A. You know, I don't know what it means. I don't (14) know where they got it. I have no basis for agreeing with (15) that. (16) Q. Do you have any reason to believe that that number (17) is inaccurate? (18) 'A. I don't know if it is or not. (19) Q. Are you aware of the 1987 to 1988 National Health (20) Interview Surveys? (21) A. National Health Interview Surveys? What years was (22) that? (23) Q. 1987 to 1988? (24) A. I don't think so. (25) Q. Okay. Those studies determined that 92 percent of Page 200 (1) 20 year old smokers surted smoking by age 18. Do you (2) believe that conclusion to be generally correct? (3) A. Could you state it again? (4) Q. Determined that 92 percent of 20 year old smokers (5) started smoking by 18. (6) A. You know, I don't know. Again, what I have seen (7) is that the average age of dally smoking Is 18 to 19. I(8) don't know how they were defining smoking, I don't know what (9) they meant by it. I don't know how they did the research. (10) Were they uking people to recall? Or did they actually (11) have a static sample over time? Who knows. I have no Idea (12) if that's accurate or not. I Page 195 to Page 200 (415) 392-0650 Tooker & Antz 5141~ a11va F~
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smoker cigarette market. =) Q. Okay. Did you see the - the sentence that talked (5) about capturing half of these 18 year old smokers, or that (6) by capturing these smokers Marlboro gained .8 parts - or 8(7) points of the.total smokers without needing to attract a (8) single brand switcher? (9) A. Um-hmm. Yes. (l0) Q. Do you agree with that statement there? (11) A. I haven't checked on It, but - (12) Q. Does it sound right to you? (13) A. It could be right. I haven't checked on It. (14) Q. Does it sound like it's wrong? (15) A. I don't know. (16) MS. BDCENSTINE: In 1984? (17) MR. JANACEK: Yes, in 1984. (18) THE WITNESS: In 19 - I just don't know in 1984. (19) But it could have been right. I don't know. I haven't (20) checked it. (21) MR. JANACEK: Q. Take a look at the next page, (22) 8. The competitive squeeze. (23) A. Um-hmm. Yes. (24) Q. Whydon't- (=5) A. Oh, read it? You want me to read this one. Page 253 (1) Q. Did you read that? (2) A. Yes. (3) Q. Did you see the last sentence in the first (4) paragraph that says that this means that any btand/company (5) which is underdeveloped among 18 year olds must achieve net (6) switching gains just to break even? (7) A. Um-hmm. (8) Q. Do you agree with that statement? (9) A. Just give me a minute to think about it. (10) Q. Sure. (1I) A. Yes. (12) Q. You do agree with that statement? (13) A. (Witness nods head.) (i4) Q. If you could turn to page 7. Do you see section 1 (1S) there? (16) A. Yes. (17) Q. Go ahead and read that. (18) A. Um-hmm. (19) Q. Do you see that younger adult smokers are the only (20) source of replacement smokers? (2 I ) A. Um-hmm. (22) Q. Have you heard the term replacement smokers? (23) A. No, I hadn't really heard that. (24) Q. Never heard that before today? (25) A. No, it could have been in that other document, but Page 254 (1) it wasn't a term I was familiar «•ith. (2) Q. Do you have any idea what Ms. Burrows could be (3) talking about when she says a replacement smoker? (4) A. I don't know. It doesn't make sense to me. (5) Q. You don't know that term? (6) A. Unh-uh. (7) Q. Okay. Do you see in the - the second sentence (8) where it says that these, and they're talking about the (9) younger adult smokers, offer a significant growth (10) opportunity? (11) A. Um-hmm. (12) Q. Do you agree that younger adult smokers ate a (13) significant growth opportunity for Reynolds? (14) A. I do think 18 to 24 adult smokers were at the time (1S) we were originally doing the campaign were a growth (16) opportunity. Today, 21 to 24. (I7) But switching gains among - or switching at age (18) 18 to 24 is substantial. Substantial. And much higher than (19) at older ages. (20) A good - within two years, a good 42 percent, (21) nearly balf of 18 to 20 year olds switch brands in two (22) years. (23) Q. So is Reynolds' decision to now just trurket to 21 (24) to 24 year olds going to make it more difficult to obtain (25) switchers? ir Page 255 (1) A; No. (2) Q. I thought you just said that older people are less (3) likely to switch. (4) A. 21 to 24 year olds, 25 percent switch. A fourth. (5) A fourth. That's a huge number of smokers. That would be a (6) huge share gain. (7) There is 17 percent of 25 to 29 year olds switch (8) in two years. (9) I mean these are - those are huge numbers. (10) That's a huge opportunity. If Camel only got a small number (11) of those switchers to come to Camel, we would be incredibly (12) successful. (13) Q. What about 18 to 21 year olds? What's the (14) percentage. (IS) A. 18 to 20, you mean? (16) Q. In your experience, based on your experience prior (17) to the 1992 change in policy: (18) A. I'm sorry. I don't follow you. (19) Q. You said that 25 percent of 21 to 25 year olds (20) switch. And 17 percent of 25 to 29 year olds switch. (21) What percentage of 18 to 21 year olds switch. (22) based on your experience? (23) MS. BIXENSTINE: Objection. You misstate - (24) misstated her testimony. (25) THE WITNESS: You got the ages i wrong. „1......: , Page 236 (t) MR. JANACEK: Q. Did I get the ages wrong? I'm (2) sorry. (3) A. There's 18 to 20, and I said .t2 percent within (4) two years of 18 to 20 year old adult smokers switch brands. (5) Q. So 18 to 20 year olds, it's 42 percent switchers? (6) A. Um-hmm. In a two-year time frame. (7) Q. Right. (8) A. In a two-year time frame, 25 percent of 21 to 24 (9) year olds switch brands. (10) In a two-year time frame, 17 percent of 25 to 29 (11) year olds switch brands. (12) There's a huge amount of switching. And the (13) switching is greatest - which goes exactly to what first (14) usual brand meant. (1S) First usual brand meant that these are people who (16) are already daily smokers, they're obviously buying a brand (17) of cigarettes, but they are not yet loyal. And this is what (18) the switching shows; that at this point they are not as (19) loyal as they will become later. (20) And that's why the 18 to 24 target was an (21) important target market, not just for Camel but obviously (22) for other brands, as well. (23) Q. Isn't it going to be more difficult now to get (24) those switchers if you've lost the opportunity to get 42 (25) percent of 18 to 20 year olds? Page 257 (1) MS. BIXENSTINE: Objection. Asked and answered. (2) THE WITNESS: As I have said, there is a (3) tremendous amount of switching. 25 percent of 21 to 24 year (4) olds is huge. (5) MR. JANACEK: Q. Wasn't there more switch, or at (6) least more switching that you were targeting or trying to (7) get prior to 1992. (8) A. No, I mean we have our efforts focused now on 21 (9) plus, and we're still trying to achieve the same level of (10) switching. It's now among 21 plus smokers. (11) And Camel bad been very successful at switching 21 (12) plus v, smokers. Very successful. ~-' ~ (13) Q. Do you see the title in section ,~ number 2? 't' (14) A. Um-hmm. N (1S) Q. It discusses a first brand ~ N strategy. Ob (16) A. Utn-hmm. (17) Q. I think you started to explain to Tooker & Antz (41Sj:392-0650 Page 252 to Page 257
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A. !t came down in 1992. Q. So the campaign was going beforehand and it's (23) still ongoing today, right? (24) A. That's correct. (25) Q. What did Reynolds do after it made the decision to Page 211 (1) switch its market from the 18 to 24 year olds to the 21 to (2) 24 year olds, what did Reynolds do to modify the campaign so (3) that it didn't appeal to the 18 to 21 year olds? (4) MS. BIXENSTINE: I object to the predicate in the (5) question about the targets. (6) THE WITNESS: Could you ask me again? (7) MR. JANACEK: Q. Sure. What did Reynolds do, (8) when it made the decision that it was only going to target (9) 21 to 24 year old smokers, what did Reynolds do to the Joe (10) Camel campaign as it existed to eliminate its impact, (11) appeal, effect, whatever you want to say the words are, on (12) the market. the previous market of 18 to 21 year olds? (13) A. When we made - (14) MS. BIXENSTINE: Iagainobject to the predicate (1S) in the question. Go ahead. (16) THE WITNESS: When we made the change from 18 to (17) 21, the effect of that change was to change who we do (18) development research among. So when we developed (19) advertising, instcad of developing it among 18 to 24 adult (20) smokers, we would do it among 21 to 24 adult smokers. (: t) Also, when we articulated the prime prospect (22) definition for the brand, it would - from that point (23) forward, it was always 21 to whatever age the brand wanted, (24) but 21 plus, not 18 plus. (:S) MR. JANACEK: Q. So Reynolds didn't do anything Page 212 ( t) to the copy of the ads? It just changed its research focus? (:) MS. BIXENSTINE: Objection. (3) THE WITNESS: No, that's - that's • not what 1(4) said. (5) All of the development research on the campaign - (6) development research, that's how you develop the ads - was (7) done among 21 plus adult smokers from that point forward. (8) That means now you are developing ads for 21 plus (9) smokers, not 18 plus smokers. (10) MR. JANACEK: Q. How - what characteristics of (11) the advertising campaign changed as a result of the decision (12) in 1992? What was the practical effect of the (13) development - developmental research only being done on - (14) A. There's no way you can possibly separate the (15) effect of going from 21 to 18 versus all kinds of other (16) things that changed with the advertising. (17) Each year because of cultural changes, because of (18) competitive changes, you're getting a reaction to the (19) advertising you're developing then. And obviously, the (20) campaign evolved over time. (21) Q. And you can't identify any things - (22) A. I couldn't possibly do that. It would be (23) impossible. (24) Q. So you can't identify any characteristics that are (25) present in Joe Camel today that weren't present before 1992? Page 213 (1) A. As a result of changing from 18 to 21? (2) Q. Right. (3) A. No, because, again, I told you that each year the (4) campaign evolves. You make many changes, and there are (S) changes that are caused by - for many reasons. There are (6) cultural changes, there are competitive changes, and these (7) changes cause your advertising to evolve qver time. . (8) Q: What about without linking it to the 1992 (9) decision, what changes in the campaign were there after (10) 1992? (11) A. Every year the campaign changed some. You know, (12) which executions you run, how they look. (13) Q. Can you identify some of the changes for me? (14) A. Sure. I would say that over time we started out (1S) with a basically birthday celebration in 1988. And that was (16) fun and lively and it was a party, because It was the (17) birthday celebration of Camel cigarettes. (18) Then we moved into more of a- thbt heroic eamel, (19) it was called, where he was - looked like - like there was (20) a submarine behind him or a big car. And - (21) Q. Let me interrupt. What time frame was the heroic (22) camel? (23) A. It was run in 1989, I believe. And I don't (24) remember exactly how long that ran. (25) But eventually, the campaign evolved so it was Page 214 (1) much more everyday sort of situations that Joe participated (2) in. He µ•as laying on a hammock, riding a motorcycle. Those (3) kinds of things. Everyday sort of situations. (4) Q. Right. (5) A. And then overtime, more recently, In the last (6) couple of years we have tried to have less materialism in (7) the campaign because the culture is more directed against (8) less materialism, adult smokers and more authenticity. (9) Camel brand authenticity. (10) Q. And when was, if you could put a time frame on it, (11) when did that sun to happen? Ln (12) A. It was in - gosh, probably t-~ started In'93-94. We (13) started -.1 talking about genuine taste on ,P Camel, the (14) authenticity of the N taste of the brand. We ran some ~ classic (15) advertising that ran way N) back when. Reinforcing - it could (16) have been '90 - I don't know, probably '93-94. Reinforcing (17) the brand authenticity. (18) Q. And were there any changes subsequent to that? (19) A. Well, every year, you know, it sort of evolves. (20) Q. Right. but - (21) A. But that's what I describe as the major changes to (22) me. (23) Q. Any other changes after the authenticity change? (24) A. Again, authenticity, and we moved away from, you (25) know, more material things to more smoking enjoyment. Page 215 (1) Q. But that was the last major change you remember? (2) A. Yeah. And that's all the way up to the current, (3) you know, obviously. (4) Q. Right. (5) A. Making it more experiential, more authentic. (6) Q. Now, you changed the Camel campaign. Is that the (7) image of the campaign? Is that what you're talking about (8) the changes in? Would that be the campaign's image? (9) MS. BIXENSTINE: Objection to the form of the (10) question. That's vague. (11) THE WITNESS: You've got to help me out. I don't (t2) know what you mean. (13) MR. JANACEK: Q. I guess I'm trying to get the (14) difference between campaign image, brand image, user image, (IS) Joe Camel's image. The changes you were discussing, was (16) that an advertising - is that an advertising image change? (17) Was that a user change? Tooker & Antz (41S) 392-0650 Page 210 to Page'_15
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esA, Mangini vs R.J. Reynolds me what that is (18) by describing first brands. But can you tell me what that (19) is? (20) A. Again, the concept of first usual brand is it's a (21) person who's already a smoker, they're already a daily (22) smoker, they're already buying a brand of cigarettes but (23) they are not loyal to that brand. (24) And if you can be the first brand they're loyal (25) to, first usual brand, that's what that means, the first Page 258 (1) brand they're loyal to, then you have a business opportunity. (2) Q. Because once - (3) A. Because they're going to stay loyal to you. (4) Q. Once they're loyal, it's more difficult to get (5) them to switch? (6) A. Right. (7) Q. Okay. You'd told me earlier that - and it seems (8) from the statistics you were talking to me about that (9) more - what's the average age that people select a first (10) usual brand? (11) A. I don't know. (12) Q. You don't know? (13) A. (Witness shakes head.) (14) Q. Is there a point in time where people are most - (15) the majority of people have selected a first usual brand? (16) A. If you look at just switching, I don't know the (17) answer. But if you look at just switching, you would say (18) by - I'd say by 29 probably most people have selected a (19) brand. (20) Q. Most people - (21) A. Well, although there are some smokers that never (22) develop brand loyalty. (23) Q. Sure. (24) A. There are a percent of smokers out there that (25) switch around brands and are never brand loyal. So there Page 259 (1) are's no way to say every smoker is brand loyal. It's not (2) true. (3) In fact, not only do the have the switching (4) opportunity, but you have the occasional use opportunity; (5) somebody that won't'switch fully but will switch part-time. (6) And 20 percent of Camel's volume comes from part-time (7) switchers. (8) Q. So their usual brand is something else and they (9) use - (10) A. And they use Camel some of the time. So Camel's (11) opportunlty is - are these full-time switchers, these (12) part-time switchers. It's a huge business opportunity for (13) Camel. Lynn Beaslev - 5/29/97 \y,~\ yy. . (14) Q. Ms. Beasley, if I could get you (10) Q. Mid '80s, You tell me if you've to turn to page (15) 36. Do you see the seen it before, (11) but - section entitled Growth Sectors Among (12) A. Let me read it. I'll tell you. (16) Younger Adult Smokers? (13) Q. Do you think you've seen that (17) A. Yes. document before? (18) Q. It's actually being continued. (14) A. I - you know, I'm not very far There's a (19) statement at the last through it. I - (15) see, I recall bullet point of that section about (20) hearing about like this Jack Daniels status symbols. Can you read that? example. (16) And I don't recall this (21) A. I probably should read the document, but - whole section if I'm (22) going to (17) Q. Have you seen documents that respond to a statement. are formatted like (18) this at Reynolds? (23) Q. Okay. (19) A. What do you mean by (24) A. Just give me a minute. formatted? Turned this way on (20) (25)_ Q. Have you read that? the page? Or - Page 260 (21) Q. Yes. That were sideways, this (1) A. Yes. type of a title, as (22) opposed to the (2) Q. Do you see that, that last bullet strategic research reports had a point? different (23) type of format. (3) A. Yes. (24) A. I gueas I've seen them both (4) Q. About status symbol brands? ways. (5) A. Um-hmm. (25) Q. Do you know, based on the (6) Q. Is that what we were talking format of the document, about, what I had (7) called a badge? Page 262 (8) A. No. (1) can you tell maybe where this (9) Q. What is meant by a status document came from, which (2) symbol brand? • department? Maybe a particular (10) A. I believe what she's talking author? about - I don't know (11) obviously; I (3) A. No, I don't know. haven't asked her about this specific (4) Q. So that could have come from one -(12) but it sounds to me what anyone at Reynolds? she's talking about Is a brand that (5) A. It could have. Since I don't (13) would be perceived as more know who it came (6) from, but - upscale. Kind of like a Mercedes (14) (7) Q. Do you have any suspicions or In the car industry. opinions as to where (8) tltis - which - (15) Q. You're making a statement by you know, the location or who using the brand, (16) you're making a. generated (9) this document? statement by driving a Mercedes, that (10) A. It sounds like perhaps Diane type (17) of thing? Burrows just because (11) It's (18) A. It would be perceived to be repeating many of the points that more of an upscale (19) brand. were In this document Maybe it had a higher price. Maybe (12) (indicating). more expensive (20) packaging. You (13) Q. So the strategic research know, something like that. department didn't - (14) that wasn't a (21) Q. Ms. Beasley, I'll hand you a format that was particular to the document that's now (22) getting closer strategic (15) research department? I'm to your era. It'ss a document that's been talking about the Diane Burrows (16) (23) previously marked as Exhibit 6, document. Plaintiff's Exhibit 6. Take (24) a look (17) A. What do you mean by format? and see if you've seen that document You mean putting It (18) this way on before. the page? (25) A. Oh, okay. Did you say there (19) Q. Right. And the title? was a date on this? (20) A. I don't know. Gosh, I don't Page 261 remember that. It (21) just sounds (1) Q. There's not a date. Again, we're like it could be her because It looks stuck with It (2) and I'll show you where like much (22) of the same it is. There's references to (3) reports information. that were generated. For example, if (23) Q. Okay. But you can't - just you look on (4) page 47. based on the (24) appearance of the (5) A. Um-hmm. (6) Q. It's discussing a Yankelovich 1979 to 1987 - (7) A. Um-hmm. So maybe It was around then? (8) Q. Right. (9) A. Perhaps? document, you - (25) A. Oh, no. Goodness. Page 263, (1) Q. Have you seen documents similar to this, in this (2) type of format? (3) MS. BIXENSTINE: Objection to the form. It's (4) vague. r T....~.~~ D. • w*s Page 257 to Page 263 (413) 392-0636 aw..~r a~.,.. aL4 4
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ssA .%tangint vs ec.d. aeynolas _ Lynn t3easley - Sl_9/97 15) THE WITNESS: What do you mean? Turned this way (6) on the page? (7) MR. JANACEK: Q. Just in general, the overall (8) format. Turned that way, the way it's set up with headings. (9) MS. BIXENSTINE: Objection. (10) THE WITNESS: Gosh, I don't know what you mean by (I1) headings. (12) Ceruinly, I've seen lots of presentations turned (13) this way on the page and presentations turned this way on (14) the page (indicating). I mean - (15) MR. JANACEK: Q. Okay. If you could turn to page (16) 2 of this document. This document is Plaintiffs Exhibit (17) No. 6. Take a look at that page. 0 (IS) A. Read It, you mean? (19) Q. Go ahead and read it. (20) A. I've read It. (21) Q. Okay. Did you see item number 1 that talks about (22) each year 1- is that million? (23) A. Looks like it, yes. (24) Q. - new adult smokers enter the cigarette market? (25) A. Um-hmm. Page 264 ( t) Q. Is that similar to what you were talking about (2) with respect to Exhibit No. S. smokers that turn 18? (3) A. It's adult smokers that are 18 that year. 1(4) believe that's what she's talking about, or whoever wrote (5) this. (6) Q. Okay. Do you see number 2? (7) A. Um-hmm. (8) Q. Again, it indicates that less than one-third of (9) smokers start after age 18, and only five percent of smokers (10) start after age 24? ` (11) A. Yeah, I told you I don't know about that. Who (12) knows what the definition of smoking was there and where (13) that information came from. And I don't even understand the (14) replacement smoker concept, so I can't help you there. (15) Q. If you look at number S- (16) A. Urn-hmm. (17) Q. - it says RJR is substantially .. underdeveloped and (18) declining in share of 18 to 20 year old smokers. (19) A. Um-hmm. (20) Q. At the time frame, and if you want a time frame, (21) you can see '83 through '87 at the bottom of that. (22) A. Right. (23) Q. Is that generally an accurate statement? (24) A. I think that's probably accurate. (25) Q. Do you know if that was accurate also for Camel? Page 265 (1) A. Camel? Camel's share among 18 to 20. Oh, I(2) don't know. Among 18 to 24 adult smokers I believe Camel (3) was about a three share In 1987, and had suffered some (4) declines. I don't knpw exactly which years. (S) Q. But you don't have any information in the 18 to 20 (6) year old smokers? (7) A. I don't remember looking at 18 to 20. (8) Q. The document identifies the source as Tracker. (9) A. Right. (10) Q. What is Tracker? (11) A. That's our share of smoker tracking system that I(12) told you about. (13) Q. That's through the market research - or the (14) market development department at that point in time? (IS) A. Who knows when this is written, but the market (16) research/market development department. (17) Q. Do you know how Tracker works? (18) A. I told you, I thought it was telephone interviews. (19) Q. Do you know if that was exclusively telephone (20) interviews? (21) A; j think so, but I'm not sure. (22) Q:Okay. (23) MS. BIXENSTINE: You have a witness who's being (24) produced next week on that topic. (25) MR. JANACEK: Q. Ms. Beasley, if you check or Page 266 (1) turn to page 4. (2) A. Utn-htttm. (3) Q. Take a look - you might as well read that. (4) A. You know, I can't read this. Maybe - I don't (5) know if your copy is better than mine, but I can't read this (6) type. (7) Q. There's two things I want you to look at. The top (8) left-hand corner, the younger adult smokers, the challenge. (9) And the handwritten notes. (10) A. Um-hmm. (11) Q. Can you read that? (12) A. Some of the Issue. Over 10 years, nearly 20 (13) poinu pass through 18 window. Brand companits that (14) apptal - (IS) Q. Does it say sustain long term growth? (16) A. Could be. (17) Q. Can you read that? You can't read that? C %, .. .-. (18), A. Could be sustain. Low appeal - maybe (19) declining - RJR and - I can't read the rest of that. (20) Q. Do you recognize that writing? (21) A. No. (22) Q. Okay. Do you know what is meant by the term 18 (23) window? (24) A. I think it's the same thing Diane was talking (2S) about. It's the number of adult smokers that are 18 each Page 267 (1) year. (2) Q. If you pass through the 18 window, you're entering (3) 18 and now a 18 year old? (4) A. You're 18. I believe it's the same thing Diane (5) was talking about. X number of people are 18 year old adult (6) smokers each year. The next year they're 19, so they pass (7) through being 18, I suspect. You know, I didn't write it, (8) but - (9) Q. With respect to FUBYAS, or first usual brand (10) smokers - (11) A. First usual brand younger adult smokers. That's (12) FUBYAS. (13) Q. Okay. What - is there an age designation (14) associated with that acronym? (1S) A. Again, to me It was 18 to 24 adult smokers. I(16) thought of them as first usual brand younger adult smokers. (17) Q. If I could turn your attention to page 26. (18) A. Yes. (19) Q. Okay. See the titles? Differentiation today (20) within YAS. FUBYAS versus switchers? (21) A. Sure, I see what it says. (22) Q. Okay. And go ahead and read that page. (23) A. Um-hmm. (24) Q. Do you see the - what looks to me to be a (25) definition of 18 to 20 year old smokers equals FUBYAS? Page 268 (1) A. Um-hmm. (2) Q. Do you agree with that, disagree with that? (3) A. It's not been my interpretation. You know, it was (4) obviously interpretation of whoever wrote this, but I think (5) of 18 to 24 adult smokers, younger adult smokers, first (6) usual brand younger adult smokers, it's 18 to 24 adult (7) smokers to me. (8) Q. Regardless? (9) A. (Witness nods head.) (10) Q. Do you know if there's anyone else at Reynolds (11) that considers FUBYAS to be an 18 to 20 year old category? (12) A. I don't know, we haven't used Tooker & Antz (41S.) 392-0650 51714 2125 Page 263 to Page 268
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BSA Mangini vs R.J. Reynolds Lynn Beasley that term in quite a (13) long time. (14) Q. When did you stop using the term FUBYAS? (15) A. I don't know, but It's been a long time since I've (16) heard anybody use it. (17) Q. Can you give me an estimate? (18) A. Well, let's see. I think it was still around In (19) the late'80s. So, I don't know, probably the'90s. (20) Q. Do you know why you stopped using the term FUBYAS? (21) A. Younger adult smokers, it meant 18 to 24, it's (22) Just an easier term. Younger adult smokers. Everybody knew (23) that meant 18 to 24 smokers, and that was the prime prospect. (24) Q. If you look at the next section, did you read (25) that? I don't know if I asked you to or not. (1) (2) (3) (4) (5) (6) Page 269 A. On page 26? Q. Yes. A. Yes. Q. You have read that? A. Yes. Q. See where it's talking about the meaning and (7) nature of FUBYAS and the difference and the relevance to (8) marketing? It describes five key needs. (9) A. Um-hmm. (10) Q. Do you see that? (11) A. Um-hmm. (12) Q. Can you tell me what that section is - is (13) intending to convey, what it means to you as a cigarette (14) marketer? (15) MS. BIXENSTINE: Objection. Compound. (16) THE WITNESS: I don't know what it's intended to (17) convey. But it looks to me like terms of basic needs. I(18) suppose she's trying to define what the psychographic wants (19) of 18 to 24 adult•smokers are. (20) MR. JANACEK: Q. Is that what it looks like? (21) A. That's what it looks like to me. (22) Q. Would - would you say that belonging and being (23) different, upward striving, excitement and sex are the wants (24) of a 18 to 24 year old? (25) A. I would say - Page 270 (1) Q. - smoker? (2) A. - they are the wants pretty much of adults. (3) Q. Do you think they would be the wants of teenagers? (4) A. I don't know. I haven't done anyresearch on (5) teenagers. (6) Q. You were a teenager once? (7) A. I was a teenager once. (8) Q. Drawing on your experiences as Page 268 to Page 273 a teenager, does (9) that seem to fit your profile? (10) A. Gosh, you know, let me think a minute. God, when (11) I was a teenager - (12) MS. BIXENSTINE: This is getting pretty personal, (13) Frank. (14) THE WITNESS: Oh, when Iwas a teenager, I suppose (15) I was concerned with belonging. I don't know about being (16) different. Upward:triving::, no. Certainly, having a good (17) time, I don't know if that's excitement. And yes, sex is on (18) every teenager's mind. (19) MR. JANACEK: This is a good time to switch (20) tapes. (21) THE VIDEOGRAPHER: This marks the end of Tape No. (22) 3 in the continuing deposition of Lynn Beasley. We're off (23) the record at 4:16 p.m. (24) (Brief recess in proceedings - 4:16 to 4:30 pm.) (25) THE VIDEOGRAPHER: We're on the record at 4:30 Page 271 (1) p.m. This marks the beginning of Tape No. 4 of the (2) deposition of Lynn Beasley on May 29th, 1997, at 222 Kearny (3) Street, 10th Floor, San Francisco, California. The video (4) operator is Steve Leftwich with Barbagelata and Associates, (5) 63 Bovet Road, Suite 410, San Mateo, California. (6) MR. JANACEK: Q. Ms. Beasley, was Diane Burrows (7) ever an employee of yours? (8) A. Yes. (9) Q. She was? When was she? Would that - when was (10) she an employee under you? (11) A. I believe when I was vice president of strategic (12) marketing. (13) Q. And what capacity was Diane Burrows? (14) A. Strategic research Issues. (15) Q. So she did research for you? (16) A. She did strategic kind of research, as I recall. (17) Q. What do you mean by strategic research? Is that (18) back to the Hispanic and - (19) A. Trends. Trends in the marketplace. (20) Q. Would she at that point in time have been with the (21) strategic marketing - or strategic research department? (22) A. No. She was in my department. (23) Q. What year was that strategic market - or the (24) year, strategic marketing department? (25) A. We're going to get a copy of my CV, so--- --- (415)392-0650 - 3129/97 Page :72 (1) Q. Do you know if it was before or after the time (2) when Ms. Burrows was with the strategic research department? (3) A. Oh, it was after - after I was senior brand (4) manager on Camel. So it would have been, gosh, I don't (5) know. Early '90s, probably. (6) MS. LAPORTE: Could I ask, could we get a copy of (7) the resume faxed so we could have it tomorrow? (8) MS. BIXENSTINE: Yes. I asked it to be sent to (9) Howard, Rice. So we'll bring it tomorrow. (10) MS. LAPORTE: Great. Thank you. (11) MR. JANACEK: Q. Ms. Beasley, I believe you said (12) that the strategic research reports were not something that (13) you saw as brand manager or - or senior brand manager on (14) the Camel account. Is that correct? (15) A. This was done in 1984 when I was - probably In (16) 1984 I was an assistant marketing manager. (17) Q. Later when you were head of the Camel brand did (18) you - were strategic reports like that generated and (19) provided to you? (20) A. I don't - you know, I don't recall any. It's (21) possible, but I don't recall any. (22) Q. Do you know who would receive that type of (23) information? (24) A. It looks like, you know, just from this list that (25) it was the top people in marketing and marketing research. Page 273 (1) And perhaps the president of the company. (2) Q. So this is more of an executive level - (3) A. It looks like 1t. (4) Q. It's not something that's passed out to the rank (5) and file? (6) A. It doesn't look like it. (7) Q. When you attended the presentation that discussed (8) information similar to that contained in Ms. Burrows' (9) strategic research report, what was your capacity at that (10) time? (11) A. I was assistant marketing manager, I think. We'11(12) have to look, you know, when we get my CV and aee exactly (13) the year. But In 1984 I think I was an assistant marketing (14) manager. (13) Q. Were there routine presentations like that? (16) MS. BIXENSTINE: Like what? (17) MR. JANACEK: Q. Like the one you attended as an (18) assistant marketing manager? (19) 'A. What do you mean? By the strategic research (20) group? Or Tooker & Antz 65)-41LI aia5A k
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N•hat? (' 1) Q. By the strategic research group or discussing (22) trends or why people smoke or when they smoke or any other (23) information that's contained within that document? (24) MS. BIXENSTINE: Objection. Compound and vague. (25) THE WITNESS: This wasn't- my take when I was Page 274 (t) in the presentation on this subject matter was 18 to 24 (2) adult smokers are an important group to this company and we (3) should be marketing brands to 18 to 24 adult smokers. (4) MR. JANACEK: Q. And that presentation would be (5) given - was that given by Diane Burrows? (6) A. Yes. (7) Q. So that would be - were there other presentations (8) given by the strategic research group? Was she with the (9) strategic research group at that time? ( t 0) MS. BIXENSTINE: At what time? (11) THE WITNESS: In 1984? (12) MR. JANACEK: Q. In 1984? ((3) A. Yes, I believe so. (14) Q. I'm sorry. Were there other presentations given (15) that you aitended that were presented by the strategic (16) research group? (17) A. I remember that one. There could have been (18) others, but I don't recall any specifics. ( t9) Q. You just don't remember? (20) A. I don't remember. (:1) Q. Are you aware of the FDA's conclusions that the (22) Joe Camel advertising campaign appeals to minors? (23) A. FDA? (24) Q. FDA. (25) A. I guess not. Page 275 (1) Q. You're not? Okay. Are you aware of an individual (2) named Claude Teague? (3) A. I'm only aware of him because of recently things (4) he's written being picked out by the FI'C. It was - been in (5) the media. I didn't know him. I don't know him. I- - but, (6) you know, I've seen some of these old documents now because (7) of the FTC investigation. (8) Q. Had you heard of him before he started showing up (9) in the media?' (10) A. No. (11) Q. Do you know what Mr. Teague's position was? (12) A. I believe I read in our response to the FTC that (13) he was an assistant in the research and development group. (14) Q. Now, is the research'and development group the (lS) same as the strategic research - (16) A. No. (17) Q. - group? What is the research and development (18) group? (19) A. It's the R&D - it's product development. (20) Research and development is our product development group. (21) Q. What do they do? (22) A. Develop our products. (23) Q. What do you mean by develop? (24) A. They - you know. I told you bow we do these tests (25) among competitive smokers and our own smokers and find out Page 276 (1) what they think about the taste of our products, (2) We Zo to them and we say "we'd like a product (3) that's smoother or we'd like a product with more tobacco (4) taste" and then they develop the products, the blends, the (5) configuration of the cigarette. (6) They also work on I believe quality assurance of (7) the product. They - they develop our product. They're (8) accountable for that. (9) Q. Ms. Beasley, I'll hand you a document which has (10) previously been marked as Plaintift's Exhibit 9. Just take (11) a look and see if you've seen thaydocument before. (12) A: Do you have a date on this? Or do you know? (13) Q. This one I'm not sure I'm going to be able to help (14) you out on a date. (15) Actually, it would be the mid '90s. If you want (16) to look along the side, do you see the big numbers? If you (17) look at 237? (I8) A. Oh, these numbers? (19) Q. Yes, if you look at 237, it talks about the - (20) A. Oh, I see what you're saying. 237. (21) Q. - information through 1985. So again, it's the (22) mid to late '80s. (23) A. Ob, because this goes to 1955. Um-hmm. All (24) right. So let me take a look at It. (25) Q. Okay. Page 277 (1) A. Gosh, I don't remember seeing this document. (2) Q. Okay. Can you turn back to page 237. Do you see (3) the bottom there where it says source? (4) A. Yes. (5) Q. And it says MSA? (6) A. Um-hmm. (7) Q. Is that the sales information you were talking (8) about, the direct sales? (9) A. That's our shipments to direct accounts and (t0) wholesalers. (11) Q. Tracker? That's the - (12) A. That's our share of smoker tracking system. (13) Q. That's done by the telephone surveys? (14) A. Yes. (15) Q. NFO? (16) A. I think that was the thing that preceded Tracker. (17) Q. Do you know what NFO is? (18) A. No. (19) Q. Do you know if that's something that's done (20) in-house by Reynolds or some third party, some vendor? (21) A. We don't do this, I'm pretty sure. NFO, I mean (22) the systems I'm aware of are Tracker, MSA and Marlin share. (23) Q. What about census? (24) A. I don't know. I guess it could be the U.S. (25) Census. I don't know. Page 278 (t) Q. This document is called the Virile Analysis. We (2) talked about the virile segment before. (3) A. Yeah. Analysis of the virile segment. (4) Q. Okay. If I un get you to turn to page along the (5) side it's 291. It's actually way towards the back, three or (6) four pages from the end. (7) Do you see that? You've read that? (8) A. Yes. (9) Q. Do you see where it's talking about the Camel (10) mindset? (11) A. Um-bmm. (12) Q. We were talking about the virile segment, and you (13) thought that the virile segment was characteristics (14) associated with that particular group. (15) A. Um-hmm. (16) Q. Are these characteristics familiar to you? (17) A. Yes, I would say so. (18) Q. The people who are their own person? (19) A. Um-hmm. n (20) Q. Do you know if the virile ~ segment was the segment (21) that t-' Reynolds developed the Joe Camel campaign for? ^' (22) A. No, it's not. N '(23) Q. It's not? o' (24) A. No. (25) Q. Do you know which campaign or - the virile Page 279 (1) segment wasn't a target of any advertising by R.J. Reynolds (2) Tobacco Company? (3) MS. BIXENSTINE: Objection. (4) THE WITNESS: The virile Tooker & Antz (415),992-0650 Page 273 to Page 279
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( t 3 ) A. Um•hmm. l: m-hmm. (IS) Q. You see where it says that if the company is to (15) survive and prosper, it needs to get its share of the youth (16) market? (17) A. Um-hmm. (18) Q. Have you heard similar statements in the past? (19) A. No. This is - this is ridiculous. And this guy (20) was not in marketing. I didn't know this guy. I'd never (21) seen - I've never seen this document until recently. He (22) wrote it when I was still In high school. This was not the (23) company's position. And even at the beginning of this note (24) be says: At the outset it should be said that we are (25) presently, and I believe unfairly, constrained from directly Page 285 (t ) promoting cigarettes to the youth market; that is, to those (2) in the approximately 21 year and under group. (3) He's saying our company policy is against this, (4) and he disagrees with it. He was a guy in R&D who either (5) disagreed with our policy or wrote it to provoke discussion, (6) but clearly, his pointing out our policy, even in 1973 was (7) adult smokers at our company. (8) It's been that way clearly since I joint the (9) company in 1982. I have never heard any - anybody in (10) management suggest otherwise. And I certainly did not see (11) this document, and it certainly had no impact on the (12) development of the Camel campaign which I directed. (13) Q. I thought you said there was no company policy (14) about marketing cigarettes to persons younger than 21, at (15) least 18 to 21, until 1992. (16) MS. BIXENSTINE: Objection. That totally (17) mischaracterizes her testimony. (18) THE WITNESS: I don't know what - what did you (19) say? (20) MR. JANACEK: Q. You just said that this document (21) reflected the company policy that it was improper to market (22) cigarettes to persons " younger than 21. (23) A. No, I said adult smokers. (24) Q. Adult smokers younger than 21. (25) A. No, I did not say that. I said it's clear from Page 286 (I) this document, even in 1973, that the company's policy was (2) to market to adult smokers. (3) Q. If you said 21, it was • inadvertent? (4) A. If I said that, it was. (5) Q. Now. Mr. Teague - did you notice this was (6) Mr. Teague's document? (7) A. I did. (8) Q. And he was responsible for developing cigarettes (9) or types of cigarettes? (10) A. He was In - (11) MS. BDCENSTINE: Objection. (12) THE WITNESS: He was in the R&D department, which (13) is responsible for developing our products. (14) MR. JANACEK: Q. So he would be responsible for (15) developing products for a new brand, for example? (16) A. No. I- I don't know that was part of his (17) responsibility at all. It looks to me like he was someone (18) who could have just wrote thought•provoking documents. 1(19) don't know what his responsibilities were. (20) Q. Well. I thought you said the research and (21) development department was responsible for developing the (22) products? (23) A. They are. That doesn't mean every single person (24) in the department works on that. (25) Q. Well, what other types of functions are there in Page 287 (I) the market - or in the reseatch and development department? (2) A. As I told you, there's QA, they're involved with (3) the quality assurance of our product. There's - I'm sure (4) they have an administrative group. You know, I'm - I don't (5) know all the positions at R&D, but I'm sure there are many. (6) And I don't know what this guy's position was. (7) I know be wasn't in marketing and I know this (8) document had - I had not seen or heard of and bad (9) absolutely no effect on the development of the Camel (10) campaign. (11) Q. If you turn to the next page - (12) A. Um-hmm. (13) Q. Did you read through the entire document? You (14) were pretty familiar with the first sentence when I asked (15) about it. (16) A. Right. As I told you, I think this or a document (17) very close to it is the one that the FTC pulled. (18) Q. Had you seen it sometime after the FTC pulled that (19) document? (20) MS. BIXENSTINE: Objection. Asked and answered. (2t) THE WITNESS: What do you mean? I don't know - (22) MR. JANACEK: Q. After - you said the first time (23) you saw it was when you were discussing this either u•ith,::: someone about the FTC or wich the FTC. (25) A. Right. Page 288 (1) Q. Until today, had you seen it at any other time? (2) A. No. (3) Q. Okay. You've only seen this document twice? (4) A. Well, I mean we had discussions of the FTC before (5) we went, and obviously our lawyer shared the documents with (6) me that the I'TC had pulled, so - (7) Q. Okay. If you look at page 2. (8) A. Um-hmm. Do you want me to read page 2? (9) Q. Yes, read it to yourself. (10) A. Yes. (11) Q. Okay. And again, the terms ptesmoker, learner (12) smoker are used. Do you see that? (13) A. Yes. (14) Q. And you hadn't seen those terms before today? (15) A. I've - again, I have been exposed to these (16) documents as the - so, yes, I'd seen it before tn ~_A J ~ N N N J today. But (17) not before it came out because of the cases against us. The (18) FTC investigation. (19) Q. Do you agree with Mr. Teague's statement that the (20) physical effects of smoking are actually quite unpleasant or (21) awkward at the beginning? (22) A. I don't know. (23) Q. Are you a smoker? (24) A. Yes. (25) Q. Did you enjoy smoking from the very first time you Page 289 (1) smoked? (2) A. Yes. (3) Q. You did? (4) A. (Witness nods head.) (5) Q. In your focus group research. was there questions (6) asked about people's experiences when they began to smoke? (7) A. No. (8) Q. So you didn't obtain any information through focus (9) groups? (10) A. No. (11) Q. Was it ever volunteered without your asking? (12) A. No, I don't recall that. (13) Q. So you have no knowledge about what typical (14) smokers usually believe or disbelieve about the first time (IS) they smoked their cigarettes? (16) A. No, I don't. (17) Q. Ms. Beasley, I'll hand you a document which I'll (18) have - which the court reporter has previously Tooker & Antz (415?-392-0650 Page 284 to Page 289
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 5/29/97 V",N,.0, segment, it was an old (5) take risks, can be (23) tough. I don't portray. The image it was trying to set segmentation. I don't really remember know about all those. It's probably a forth. put (17) forward. when we quit using (6) it. But in 1987, (24) stretch in my mind, but - (18) A. The Image, as I said, was fun, when I developed the Camel campaign, (25) Q. You don't think that was the clever, (19) Imaginative, attention I was (7) not targeting the virile user image of the getting, entertaining. segment. It was 18 to 24 adult (8) Page 281 (20) Q. Are you aware of the FDA's smokers. (1) Camel brand in the 1987? conclusion that it was (21) company (9) This is not a description of the virile (2) A. Maybe by some people. policy, based on the documents it had segment. (l0) This is a description of (3) Q. What about in 1988 after Camel seen, that in (22) order to grow and Camel. I'm assuming it was (11) was taunched? prosper RJR had to develop new summarizing how people who smoked _ (4) A. What? brands that (23) would appeal to Camel felt about Camel. I(12) don't (5) Q. Would these characteristics that presmokers, learner smokers and 14 to know that to be true, but that looks like you said weren't (6) present in 1987, 18 (24) year olds? what it is. leader, stands out, independent, were (25) A. That is just not true. (13) MR. JANACEK: Q. So this looks to those (7) user images.- was that user Page 283 you like it's a (14) user image as image developed? Or did that (8) come (1) Q. You disagree with that opposed to a brand image? to be? determination? (15) A. It's what people - I'm (9) A. No. What - the Camel (2) A. Yes. I don't know if the FDA guessing. I don't know. (16) It campaign, kind of (t0) perceptions it concluded that or (3) not, but I doesn't say. But I'm guessing it's a created was fun, clever, certainly disagree with that description of (17) people who smoke eye-catching, (11) entertaining, statement. Camel and how they feel and see different, unique, authentic, genuine. (4) Q. Have you heard the term themselves (18) and how they see (12) Q. Would this - you said the - prior presmoker? Camel. to the Joe (13) Camel campaign, the (5) A. I saw It In some of the other (19) Q. Have you heard the term or are campaign was the Bob Beck documents the FTC (6) pulled. you aware of the (20) term user image? campaign? Did (14) I get that right? (7) Q. When did you see that? (21) A. Sure. (ts) A. Um-hmm, (8) A. You know, In the last, I don't (22) Q. What is a user image? (16) Q. Would this have been the user know, two, three (9) weeks. (23) A. It - I would say lt's people image of the Bob (17) Beck campaign? (t0) Q. You only saw those in - with who are adults who (24) are smoking. (18) A. It could have been. I think respect to the (11) recent FTC They're the users of that brand, user. some of these words (19) would investigation? And (2S1 the Image would be either describe the Bob Beck campaign. (12) A. With respect to that. their image of themselves, their (20) Q. Which ones? (13) Q. You hadn't heard the term Page 280 (21) A. Oh, this rugged, adventurous, presmoker before the FTC? .(1) image of the brand, their Image of independent, tough. (14) A. Or learner smoker or starter the brand personality. (22) Q. But not Camel? smoker or whatever (15) those terms (2) Q. So it's interchangeable with (23) A. Again, some people - some were. brand image? User (3) image and smokers may have felt (24) that about (16) Q. Ms. Beasley, I'll hand you a brand image are - Camel. I - document which I'll (17) have the court (4) A. Not always Interchangeable, (25) MS. BIXENSTINE: About Joe reporter - or excuse me, that has but they have been (5) used Camel. previously (18) been marked as Interchangeably. It depends on the Page 282 Plaintiff s Exhibit No. 10. author and who's (6) talking. (1) THE WITNESS: About the Camel (19) A. You wanted me to read this? (7) Q. In 1987, was there a user Image brand. Some people (2) may have felt - (20) Q. Take a look at it and see if that you were (8) aware of with respect is that what you're asking me? Did you've seen this (21) before. to the Camel brand? people (3) think this about the Camel (22) A. I believe this Is either close to (9) A. How Camel smokers saw brand? or the document (23) the FTC used. Camel? (4) MR. JANACEK: Q. Yeah, this - (24) Q. So you - had you seen that (10) Q. Yes. well, correct to (5) user image my before? (1 t) A. Yes. understand was that it's the image that (25) A. No. _ (12) Q. What - what were some of the they (6) see that they're portraying by Page 284 characteristics? (13) What was the user using the Camel brand. So it (7) would (1) Q. Before the FTC? image of Camel in 1987? be the brand. (2) A. No. (14) A. I would say It's many of these (8) A. Did people see the brand as (3) Q. If you can turn to the second things. People who (15) are your own standing for these (9) things? Some page of this (4) document. person. Different, unique, authentic, may have. I don't know. I'd have to (5) A. Um-hmm. Page 2? genuine, (16) highest quality, buys go back (10) and look. I think the (6) Q. You see the paragraph that the best, masculine, enjoys being Bob Beck campaign stood for some starts with (7) 'Realistically'? Sorry. (17) different. of (11) these things. The second page? (18) Q. It looks like you skipped some. (12) Q. What about-the Camel • (8) A. Oh, the page 2? This page (19) A. Yeah, I don't know about message? Is that different (13) than the says page 2. I thought (9) you meant those middle ones. image? page 2. (20) Q. Which ones? (14) A. The Camel message? I don't (10) Q. I'm sorry, the one that on the (21) A. Leader, stands out, know what you mean. side says - Independent, adventurous, (22) (tS) Q. The message that the Joe (11) A. Right. aggressive, rugged, likes - liked to Camel campaign was trying (16) to (12) Q. - 375. I Page 279 to Page 284 (41S) 392-0650 Tooker & Antz ~~~ ~L4 a+a~~
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 3139, 97 department? (i) A. Remember, I told you that NiDD I thought was the (8) letters for marketing development department, which is what (9) our marketing research department was called back then. (10) Q. So if I've got - if I understand you correctly, (11) the strategic research group or division or whatever you (12) want to call them, would be a smaller part of the marketing (13) development department? (14) A. Yes, I believe that's what it was. (15) Q. Do you know, starting with who this - you see the (16) to portion up in the left-hand corner? (17) A. Um-hmm. (18) Q. So who is G.H. Long? (19) A. Gerry Long. (20) Q. What about M.L. Orlowsky. Or Orlowsky. I'm (21) probably butchering that name. (22) A. Marty Orlowsky. (23) Q. Who was he? (24) A. He was head of marketing for a while at Reynolds. (25) Q. Do you remember when? Page 237 (1) A. Probably I think in the mid '80s. (2) Q. Would he have been - (3) A. Well, probably - maybe not by '84. I don't (4) know. Tht mid President of R.J. Reynolds Tobacco Company. Page 238 (1) Q. What about H.J. Lees? (2) A. Harry Lees. (3) Q. Who is he? (4) A. Gosh, in 1984, I don't know. He was In marketing. (5) Q. With respect to the copy list - (6) A. Um-hmm. (7) Q, - who is L.W. Hall? (8) A. Larry Hall. (9) Q. What's his role? (10) A. Not sure, but he may have been head of the (11) marketing development department. Could have been, at this (12) ttme. (13) Q. What about•MacKittnon? (14) A. Sally MacKinnon. (15) Q. And who was she? (16) A. She was in marketing, also. (17) Q. Do you know what her role was? (18) A. I think maybe at this time - think - she was new (19) brands marketing. (20) Q. What about McKenna? (21) A. Gerry McKenna. (22) Q. Who was he? (23) A. He was in marketing, also. (24) Q. Do you know what his role was? (25) A. You know, I don't recall in'84. He could have - Page 239 (1) been a marketing director. Just not really sure. '80s. (2) Q. Do you know Mr. Long? (5) Q. Would he have been involved in (3) A. Yes. the Joe Camel (6) advertising (4) Q. Do you know what he did before campaign? he got to Reynolds? (7) A. No. (8) Q. What is the marketing - or what would a head of (9) marketing do? (10) A. The head of marketing? Runs the marketing (11) department. (12) Q. And the marketing department is separate and (13) doesn't interact with the brands? (14) A. No, no, no. The marketing department is - (15) marketing department are the people who market the brands, (16) plus people who do Implementations of promotions. When we (17) had a media department, the media department was part of the (18) marketing department. (19) Q. Then would the brands be a subdivision of the (20) marketing department? (21) A. Right. Not of the marketing development (22) department. That was research. (23) Q. What about G.H. Long, Gerry Long, who was he? (24) A. You know, I - 1984. He could have been president (25) at the time. (5) A. Before he got to Reynolds? No. (6) Q. Do you know if he was an attorney in a law firm? (7) A. (Gesturing.) (8) Q. You don't know? (9) A. No. (10) Q. Does the name Shook, Hardy & Bacon ring any bells? (11) A. No. I'd be surprised, but - (12) Q. What about J.T. Winebrenner? (13) A. He was John Winebrenner. (14) Q. And what is - who was Mr. Winebrenner? (1S) A. He was in marketing, also. (16) Q. What was his role? (17) A. You know, at this time I don't know. At one time (18) be was head of marketing. But in'84 was he head of (19) marketing? I don't remember which one of them were head of (20) marketing in'84. (21) Q. What about Shostak? (22) A. John Shostak. (23) Q. And what did he do? (24) A. He was In marketing, also. (25) Q. Were all-of these people in CM .a X - i:: marketing? Page 240 (1) A. Okay. Is that what you just want me to do, Is go (2) down and say? (3) Q. Well, I just want to kind of know who they are, so (4) yeah, that would be great. (5) A. Ernie Fackelman was in I believe the marketing (6) development department. (7) Ellen Monahan I believe was in the marketing (8) development department. (9) Q. Okay. Slow down a little bit for the court (10) reporter. (11) A. I'm sorry. Jerry Moore was I believe in the (12) marketing development department. (13) Jim Gemma I believe .was In the marketing (14) development department. (15) Greg Novak, George Baroody and Dan Pearson I think (16) were part of - Dan Pearson may have been head of the media (17) department. And George Baroody and Greg Novak I think were (18) over a promotion department that was part of marketing (19) then. I don't know that for sure. I'm Just recollecting. (20) Q. Right. What about the bcc's on the right? (21) A. Boy. Okay. Mike Curry, I think that's Mike (22) Curry, I think he was in marketing. (23) I don't know the next guy. (24) Q. Totterdale? (2S) A. Unh-uh. I'm not sure who R.A. Lloyd is. Page 241 (1) Tom Rucker is in our legal department. (2) Ken Neher was in marketing at one time at (3) Reynolds. (4) I don't know G.G. Bethea. (5) R.J. Harden. Gee, it sounds familiar. I can't (6) remember. (7) And J. Whaley, I believe that's Joan Whaley. I(8) believe she was a consultant to the company. •(9) Q. Consultant? What type of consultant? (10) A. Marketing development department consultant. (11) Q. Ms. Beasley, is the marketing development (12) department still a department at Reynolds? (13) A. There's a marketing research department. (14) Q. Functionally they're the same? They just changed (15) their name, or is that an entirely different function? (16) A. There's some differences. There's some (17) similarities. Page 236 to Page 241 (415) 392-0650 Tooker & Antz 4 si-4 1 y ai aah -
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BSA Man~ini vs R.J. Reynolds Lynn Beaslev would need to know is (13) sit down and talk to the people I want to market a product (14) to and find out what would motivate them, what they like, (15) what they don't like, why they choose a brand. I mean (16) that's what I'd have to do. (17) Q. Ms. Beasfey, I'm going to hand you a document (18) which has been previously marked as Plaintiffs Exhibit No. (19)4. (20) A. Do you want me to read It or - (21) MS. BIXENSTINE: Yes. (22) MR. JANACEK: Q. Originally, I just want you to (23) see if you've seen this before. So if you need to read it (24) to do that, then feel free. (25) A. Do you know the date when this was written? I Page 206 (1) don't see a date, or to who It was to. (2) Q. If you look on page RJM - see down in the bottom (3) right-hand corner. Do you see the corner down there? RIM (4) 058. (5) A. RJM0S3, RJM - (6) Q. I'n4sorry. 058 are the last three letters - last (7) three numbers. (8) A. Oh, I'm sorry. Okay. Yeah. (9) Q. I don't have an exact date for you, but they're (10) looking at information from 1974. (1t) A. So probably mid'70s, I guess. (12) Q. Right. (13) A. Do you know who this was written to? Or did this (14) come as a memo or is this the whole thing or what? (15) Q. This is my - these are going to be my questions (16) to you. You're - (17) A. I haven't seen It before, so I can't help you. (18) Q. That was my first one. You haven't seen this (19) document before today? (20) A. No. (21) Q. Do you know who JUDK is? See the top right-hand (22) corner of the document? (23) A. No. (24) Q. Do you see that JUDK? (25) A. Yes, I do. I see that. Page 207 (1) Q. But you don't know who that is? (2) A. No. (3) Q. Do you know who William Esty is, William Esty (4) Company? (5) A. Yes. (6) Q. Who is William Esty Company? (7) A. It's an advertising agency. (8) Q. Is that advertising agency used or was that (9) advertising agency used by Reynolds in the mid '70s? (10) A. I don't know about the mid '70s. (11) Q. When do you know - was that advertising agency (12) ever used by Reynolds? (13) A. Yes. (14) Q. Do you know when? (1S) A. When? You know, I joined Reynolds in 1982 and (16) they were one of our agencies then. But I don't think they (17) stayed around - I can't remember exactly when we let them (18) go, but - (19) Q. So they left sometime after'82? (20) A. Right. (21) Q. Do you have any information on when they began (22) working with Reynolds? (23) A. I don't know. (24) Q. So they could have been working for Reynolds in (25) 19 - in the mid '70s? Page 208 (1) A. Could have been. I don't know. (2) Q. Do you see the title of this document? What (3) Causes Smokers to Select Their First Brand? (4) A. Um-hmm. Um-hmm. . (5) Q. And you can't think of any relevant reason why you (6) would need to know what causes smokers to select their first (7) brand for your purposes? (8) A. For adult smokers, you would want to know - If (9) they mean first usual brand, and what they talk about In (10) this document is first usual brand, and they're talking (11) about adult smokers. (12) And again, the way Reynolds uses first usual (13) brands is it means the first brand that you are loyal to. (14) Obviously, If you're a daily smoker you already (15) are smoking some brand. The question is, are you loyal to (16) that brand? And what flrtst usual brand means is the first (17) brand that you are loyal to. (18) And - and what they outline in here, under (19) initial brand selection, they're talking about adults. They (20) talk about all smokers, they talk about 18 to 20 and they (21) talk about 35 to 49. (22) So they're talking about adult smokers. I Imagine (23) that's why they put It together. Talking about first usual (24) brand and adult smokers. (25) Q. Is - does Reynolds want to attract eo le to Page 2 (1) select Camel as their first usual, brand? (2) A. The first brand they're loyal to? Sure. (3) Q. The first brand they're loyal to? - 3/29/97 ..,.x 1- Thac's (4) important to Reynolds? (5) A. This is - again, we would like - one of the (6) targets for Camels is 18 to 24 adult smokers. We would like (7) people who have already decided to smoke to choose that (8) brand, whether they switch from another brand, whether (9) they're currently smoking a brand they're not loyal to, and (10) we want to maintain the ones that have already chosen Camel. (11) ,Q. You said this document was - it seemed to be (12) discussing adults. Did you look at the first page? (13) A. Yes. (14) Q. Do you see that - the section on starting age? (1S) A. Yeah, I see they're reporting some government (16) study. (17) Q. So they're reporting that 54 percent of inen, for (18) example, in the middle there, started smoking before they (19) were 17? (20) A. Yeah. Yeah, who knows what starting to smoke (21) meant. It could be, you know, smoked one cigarette in your (22) life. Who knows. (23) Q. But again, to you it wouldn't be important when (24) someone began to smoke? (25) A. I think the reason they put It In here - and I'm Page 210 (1) speculating since I hadn't seen this before - Is that they (2) wanted to reinforce that this younger adult segment was an (3) important segment for Reynolds. That's what it looks like (4) to me. (S) Q. At some point in time did Reynolds switch its (6) target market from 18 to 24 to 21 to 24? (7) A. Yes. (8) Q. When was that? (9) A. It was I think mid 1992. (10) Q. Why did Reynolds switch its target market? (11) A. Because - my understanding is because, one, we (12) were receiving unjust criticism about marketing to legal (13) adult smokers; felt that it would reduce the amount of (14) criticism. (tS) Two, that many of the promotions we do were (16) limited to 21 year old adult smokers anyway, and that would (17) make this consistent across all of our marketing. (18) I think those were the key reasons. (19) Q. Now, that decision came down in the midst of the (20) Joe Camel advertising campaign, correct? I Page 205 to Page 210 (415) 392-0650 ook &re Antz 5\74114 a i}Rft
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among ) ounger adult smokers. ;s) Q. IVoK•, this is after the French Camel but sometime (5) before the campaign started, correct? (6) A. Well, I don't know, because this isn't dated. (7) Q. Well, they're talking about the January 1986 (8) French T-shirt promotion. (9) A. Right. (10) Q. You saw that? (11) A. Right. I did. (12) Q. Okay. Can you turn to page - page 5. (13) A. Um-hmm. (14) Q. Did you see the bullet points that talks about (15) Camel's desired positioning? (16) A. Which paragraph are you on? (17) Q. Talking - see the Roman IV up there? (18) A. Oh, yeah, um-hmm. (0) Q. And the second - well, it's that paragraph that (20) starts, but the two bullet points? (21) A. Yes. (-2) Q. And I thought earlier, and I cuuld be wrong, but I(23) thought earlier you testified that independence or (24) individualistic wouldn't have been traits that would you (25) characterize the Joe Camel advertising campaign? Page 296 (t) A. Those would not be the key characteristics I would (2) say, no. (3) Q. Well, I thought before you said they wouldn't be (4) characteristics at all. (5) A. I - you know, no, I don't believe those would be (6) the characteristics to describe the Camel campaign. ( 7) Q. You see the part where it's taiking about (8) demonstrating success via the respect and admiration of(9)peers? (10) A. Where are you? (1 t) Q. It's that same part, the second dash. (12) A. Oh, okay. Um-hmm. (13) Q. Does that have any meaning to you? (14) A. Sure. (15) Q. What does that mean? (16) A. Demonstrating success via the respect and (17) admiration of peers. Let's see. Just that you would - (18) when you make a brand choice, it would be important that (19) your peers see that and respect that choice. (_0) Q. So that's something that you're trying to - an (21) image you're trying to portray? (22) A. No. Tooker & Antz (23) MS. BIKENSTINE: Objection. (a) THE WITNESS: It's what this - you asked me what (25) I thought this statement meant. and I'm telling you what I Page 297 (1) thought it meant. (2) MR. JANACEK: Q. Okay. So that doesn't have (3) anything to do with the marketing of cigarettes? (4) MS. BIXENSTINE: Objection. Mischaracterizes her (5) testimony. (6) THE WITNESS: Not what I said. You asked me to (7) tell you what I thought this meant. (8) MR. JANACEK: Q. Okay. I guess I didn't follow (9) you. I was trying to figure out what - what does that mean (t0) with respect to the marketing of Camel cigarettes? Is that (11) something you're trying to accomplish or not accomplish? (12) MS. BDCENSTINE: At what time frame? (13) THE WITNESS: When we were doing the Came1(14) campaign, the Joe Camel campaign in June of 1987, my (15) recollection is the key things we were trying to accomplish (16) was fun, entertaining, clever, imaginative. Those (17) characteristics. (18) MR. JANACEK: Q. Nothing to do with trying to (19) create peer acceptability and belonging? (20) A.;Titat was not a characteristic we wet'e looking (2t) for. Clearly, you - you don't want to create an image (22) that - I mean somebody's not going to adopt It if they (23) don't like the image. If they like the image, then their (24) peers will probably like the image, too. I don't know. (25) Q. At any point in time in the Joe Camel campaign has Page 298 (1) a goal of the campaign been to create acceptability and (2) belonging? (3) A. During - (4) Q. The Joe Camel campaign. (5) A. During the Joe Camel campaign? No, I would say it (6) was to show camaraderie and friendship, but not - no. (7) Camaraderie and friendship. We had executions with Joe with (8) other camels that I told you about. ' (9) Q. Isn't camaraderie something different than (10) belonging? (11) A. Right. It demonstrated that he had friends, he (12) wasn't alone. (13) Q. So an image - or a goal of the campaign was to (14) show Camel as a brand that your friends would smoke? (15) A. No, the goal of the campaign was to provide Camel (16) with an image. And that image was fun and s (41 S}'392-0650 clever and (17) imaginative and. %ou ~ kno%~, other characteristics I told vou (18)about. Adventurous, rebellious. experiential, irreverent. (19) Those were the characteristics we were trying to portray. (20) In the context of those characteristics, we (21) included some executions, Joe with other camels, so that you (22) didn't always see him alone. (23) Q. Do you see the next line that talks about the (24) repositioning among younger adult smokers? That's under the (25) respect and admiration of peers? Page 299 (1) A. Right. Um-hmm. (2) Q. We started to talk about that. How did - what (3) was the execution cn that Reynolds decided to go with to (4) ~ reposition - to effect that ~ repossessioning. (5) MS. BIXENSTINE: Which tv repositioning? N (6) MR. JANACEK: Q. The o0 repositioning discussed on (7) page 5. (8) MS. BIXENSTWE: Calls for speculation? (9) THE WITNESS: Again. I don't know who wrote this (10) document or exactly when it was written and what was done (11) with it. So - (12) MR. JANACEK: Q. You weren't involved in the (13) decision to reposition Camel as a younger brand? (14) A. When I joined the Camel brand in June of 1987, the (15) target for Camel cigarettes was 18 to 24 adults primarily, (16) 25 to 34 adult smokers secondarily, adult smokers, and (17) current Camel adult smokers. (18) Q. And you weren't involved in the decision-making (19) process with respect to setting that target? (20) A. No, that was defined when I joined the brand in (21) 1987. 1 certainly thought that was correct, but that was -(22) had I not thought it was correct, I would have questioned (23) it. But that had already been deGned when I joined the (24) brand. (25) Q. The next line talks about displacing Marlboro as a Page 300 (1) brand choice among young adult smokers - younger adult (2) smokers. (3) A. Um-hmm. (4) Q. Was that one of the targets of Camel? Marlboro (5) smokers? (6) A. The target of Camel was 18 to 24 adult smokers (7) primarily, secondarily 25 to 34 adult smokers. (8) Now, it so happens that many of Page 295 to Page 300
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get out of here. (20) MS. BIXENSTINE: My objection - (=1) MR. HOPPER: And your client wants to get out of (22) here. (23) MS. BIXENSTINE: My objection is registered. (24) MR. HOPPER: Your objection is irrelevant because (25) it's not an objection. Not an objection anywhere in the Page 316 (1) rules to that whatsoever. (2) THE WITNESS: I think that is very - very (3) relevant. That in fact it was a draft document and the (4) final document was changed. (5) MR. JANACEK: Q. Where does it say it's a draft (6) document? (7) MS. LAPORTE: Arq you adopting your counsel's (8) testimony? Is that what you're doing? There was no (9) question pending. There was a speech here. (10) MR. HOPPER: Which underscores the fact that (11) counsel's testifying further. (12) THE WITNESS: Look, in the FTC investigation - (13) MR. HOPPER: You're not responding to a question. (14) I'm going to object to the witness as being nonresponsive. (15) THE WITNESS: In the FTC investigation - (16) MR. HOPPER: I'm going to renew that objection, (17) that - (18) THE WITNESS: In the - (t9) (Interruption by Reporter.) (20) THE WITNESS: In the FTC investigation, they had (21) one of these R&D planning documents, and I know our (22) companies response was that it was a draft document and in (23) the final version problematic language was taken out. (24) MR. JANACEK: Q. My first question is where does (25) this say this is a draft document? Can you show me on the Page 317 ( t) document where it says that? (2) A. No. What I just told you is during the FTC (3) investigation there was a research and planning " document (4) that referred to underage smokers and in fact what - our (5) companies response was to that, there was a final document (6) and that was taken out. (7) Q. Who told you that? (8) A. Guy Blynn, in our legal department. (9) Q. When did Mr. - do you know when Mr. Blynn began (10) working with R.J. Reynolds Tobacco Company? (11) A. Gosh, I don't know, but he's been there a while. (12) Q. He might not have been there in 1976? Or are you (13) sure he was? (14) A. No, I don't know. (15) Q. You weren't employed in 1976 by R.J. Reynolds (16) Tobacco Company, were you? (17) A. No. . (18) Q. You don't have any knowledge about this being a (19) draft? (20) A. What I told you Is - and I can repeat it.. (21) Q. I don't need you to repeat it. Any firsthand (22) knowledge of this being a draft? You weren't there? (23) A. I was not there in 1976. (24) Q. So you also don't know on a firsthand basis (25) whether Reynolds' policy in 1976 was in fact to make strides Page 318 (I) in the 14 to 18 year old market? (2) A. I don't believe that was true. I believe that you (3) showed me a document earlier today that was about 1973 (4) that - a Claude Teague document where he says he - he (5) thinks the company is being unfairly restricted and the (6) policy of the company is wrong and we ought to be able to (7) market to underage smokers. So I think that's pretty clear (e) that the company policy was adult smokers. (9) Q,Ms. Beasley, I'II hand you a document which (10) I'll - has been previously marked as Plaintiffs Exhibit (11) 13. Take a look at that document and see if you've seen (12) that before. (13) A. bh, 1974. No, this- (14) Q. You haven't seen that before? (15) A. (Witness shakes head.) (16) Q. That wasn't a document that the FTC showed you, (17) are that you saw with respect to the FTC portion? (18) A. No, I don't - no. . (19) Q. Take a look at the third paragraph, the paragraph (20) that starts with 'first.' (21) A. Um-hmm. (22) Q. Would you read that paragraph. (23) A. I will. Mine is cut off here. I don't know what (24) that says. 1950 - do you have it on yours? (25) Q. Actually, mine in the copying process, it's an • Page 319 (1) old document, and I've got - it looks like 56 to me, but I(2) can't tell you for sure. (3) A. Um-hmm. (4) Q. Now, doesn't this document that's written a year (5) later than the one we were just talking about, the 7 - (6) excuse me, the year before. the 1976 document, identify the (7) young adult market as the I: to -: age group' (8) MS. E:KENSTI`E: Objection. (9) THE WITNESS: This document calls the young adult (10) market 14 to 24. (11) MR. JANACEK: Q. All right. If you look at (12) the - now, this is also a 1975 marketing plans (13) presentation. Have you heard about that marketing plan (14) presentation? (15) MS. BIXENSTINE: Objection. (16) THE WITNESS: Marketing - no. this was in 1975. (17) MR. JANACEK: Q. And you never heard anyone talk (18) about a 1975 meeting where some radical marketing - person (19) suggested that Reynolds market to 14 to 24 people? (20) MS. BDCENSTINE: Objection. Mischaracterizes the (21) document. (22) THE WITNESS: This document does not say that. (23) MR. JANACEK: Q. No, I'm not saying the document (24) says that. I'm asking you if you ever heard rumors or (25) discussions about a 1975 plans meeting, plans presentation. Page 320 (1) A. No. (2) Q. No? And do you see the very first paragraph about (3) the paramount marketing objective? (4) A. Um-hmm. (5) Q. So this document's talking about RJR's paramount (6) marketing objective in 1975 and beyond. Do you see that? (7) A. Um-hmm. (8) Q. Wants to increase - do you see the next (9) paragraph. Wants to increase our young adult franchise? (10) A. Um-hmm. (11) Q. Do you see is that? Then it starts talking about (12) the young adult market, in the 14 to 24 age group? (13) A. It - in that second paragraph, it says: Let's (14) look at the growing importance of the young adult in the (15) cigarette market. In 1950 something, this young adult (16) market, the 14 to 24 age group, represented 21 percent of (17) the population. (18) Then it goes on to say: As seen by this chart, (19) they will represent 27 percent of the population in 1975. . (20) They represent tomorrow's cigarette business. As this 14 to (21) 24 age group matures, they will account for a key share of (22) the total cigarette volume. (23) I think they're talking about when the group (24) matures, and the importance of that group to us when they (25) become adult smokers. ^ Page 321 Page 315 to Page 321 Tooker & antz (41fi) 392•0650 51714 2130
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as.. .•1ang1n4 •a A.d. tee.nutas a.ynn 8eascey -zrzy/y/ repositioning (8) Camel among 18 to 24 adult smokers, secondarily 25 to 34 (9) adult smokers. (t0) Q. Do you recall what campaign ideas they had on the (11) table? (12) A. Oh, gosh. I think one of them was character you (13) can't fake it. And I don't know, there were four or five of (t4) them. I can't remember them exactly. (15) Q. Is the Joe Camel campaign designed to elicit an (16) emotional appeal? (17) MS. BIXENSTINE: Objection. Vague. (18) THE WITNESS: Whatthe campaign is designed to do (19) is provide information on the brand. Image and product (20) information. (21) MR. JANACEK: Q. It's not designed to create an (22) emotional response in the - (23) A. Again, the - when you create an image and product (24) characteristics for a brand, you - you're developing it (25) against people. And obviously, you're looking for a ^ Page 306 (t) reaction of "I relate to that. I like it. It is meaningful (2) to me. It's unique. It's relevant." You're looking for (3) that kind of a response. You can define that as emotional (4) if you want. I don't know what you mean by emotional. (5) Q. Did you read the next section. item number 4? (6) A. What page are you on? I'm sorry. (7) Q. Same page. Number 1, if you've changed pages. (8) A. Elicit an emotional response rather than purely a (9) rational response. An emotional reaction positively (10) motivates the consumer into rethinking Camel. (11) Q. My question was is that what Camel was trying to (12) do, was elicit it with the Joe Camel campaign? (13) A. I told you what we were trying to do with the Joe (14) Camel campaign. And I believe that It „ generated a response (1S) that I've already characterized for you, which was it was (16) liked, It was relevant, it was unique. And provided (17) information about Camel product which people were not aware (18) of. (19) Q. Would you turn to page 7. Do you see the section (20) on escaping into imagination? (21) A. Um-hmm. (22) Q. Is that - you also see the name Yankelovich. (23) Yankelovich data? (24) A. Um-hmm. (:S) Q. What is that? Page 307 (1) MS. BIXENSTINE: What is what? Yankelovich data? (2) MR. JANACEK: Yankelovich or Yankelovich dau? (3) THE WITNESS: Yankelovich data I believe is (4) psychographic information. (5) MR. JANACEK: Q. What kind of psychographic (6) information? (7) A. It - you know, I'm trying to recall. It's been a (8) long time since I've looked at any Yankelovich data. But I(9) think they track, you know, mindset infortaation. Values (l0) maybe. I really don't recall exactly. (11) Q. So Yankelovich is like a third-party vendor? It (12) sells information? (13) A. It's an outside - I think that's what It ls, yes. (14) Q. And Reynolds subscribed to Yankelovich, or at (15) least got its information? (16) A. I guess. It looks like It. (17) Q. Have you seen Yankelovich data in your capacity as (18) an employee of R.1. Reynolds Tobacco Company? (19) A. I think I may have. You know, it's certainly not (20) foreign. Yankelovich, that sounds familiar, and I think (2t) I've seen psychogsaphic data on smokers, adult smokers from (22) Yankelovich. (23) Q. What about with respect to the Camel brand, while (24) you were working on the Camel brand? (25) A. Gosh, I don't remember. Could have. Page 308 (1) Q. Would that have been something you would use in (2) marketing or something you would use as a VP that's (3) overseeing marketing? (4) MS. BIXENSTINE: Objection to the form of the (5) question. (6) THE WITNESS: I - really, I don't know what you (7) mean. It would - I don't have the data in front of ine, and (8j it would depend upon what the data was and what it said and (9) whether it - was helpful for not. (10) MR. JANACEK: Q. Isn't it an annual or a periodic (11) piece of information that's set out every 36 months or every (12) year? (13) A. I don't know. It's an outside research company (14) and I think they do psychographic information. (lS) Q. Do you see the next section, excitement/fun is (16) success? (17) A. Um-hmm. (18) Q. Now, is that - does that now look,like it's (19) calking about the Jo: Camel campaign? (20) A. \o, it's not talking about the Joe Camel (21) campaign. It says excitement/fun is success. Younger (22) adults center their lives on having fun In every way (23) possible (24) Q. If you could slow down for the court reporter. (25) Sorry. Page 309 (l) A. - and at every time possible. (2) It's talking about younger adult smokers and (3) what's Important to them. It's not talking about the Joe (4) Camel eampaign. (5) Q. Well, you see there it's talking about advertising (6) which incorporates exciting, fun, humorous themes? (7) A. Yes. (8) Q. Isn't that what you said the characteristics of (9) the early Joe Camel campaign were? (10) A. Characteristics of the Joe Camel campaign in 1988 (11) I said it was fun, clever, Imaginative. So fun, yes, I used (12) that word. (13) Q. Humorous? (14) A. No, I did no not say humorous. (15) Q. I thought you said that everyone at the focus (16) group thought it was funny. (17) A. Clever. (18) Q. Clever. (19) A. There's a difference. (20) Q. That's different. Ms. Beasley. 1'II hand you a(21) document which was previously marked as Exhibit 12. (22) MS. BIXENSTINE: Frank, it's about 5:30. How long (23) do you expect to go today? (24) MR. JANACEK: It's up to everyone else. I'll go (25) as long as anyone. As long as you guys will let me. As Page 310 (1) long as you can suy, listen to me talk. (2) MR. L'ORANGE: Can we go off the record a minute? (3) MS. BIXENSTINE: Yes. (4) THE VIDEOGRAPHER: We're off the record at 5:32 (5) p.m. (6) (Discussion off the record - 5:32 to 5:35 pm.) (7) MR. JANACEK: We're back on the record at 5:35 (8) p.m. (9) MR. JANACEK: Q. Ms. Beasley, would it surprise (10) you if there was a statement by R.J. Reynolds Tobacco (11) Company that it needs to establish a successful brand in the (12) 14 to 18 year old market? (13) A. I don't believe the company said that. Page 305 to Page 310 Tooker & Antz (419}392-0650 51714 2129
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 5/29/97 _ X.".,.t,,:, marked as (19) Plaintiffs Exhibit No. 11. (20) Have you seen that document before, or are you (21) still - (22) A. I need to read it. (23) Do you know when this was written? (24) Q. Again, it's undated. But if you take a look at (25) page 2 - Page 290 (1) A. Yes. (2) Q. - we have more data from '70, '75. '80, '85. So (3) sometime after '85. (4) A. I don't remember this exact document. Certainly (5) some of the conclusions in it I've heard. (6) Q. You've never heard - do you remember the term the (7) white paper? (8) A. Gosh, It could have been. We used that term some (9) back then. (10) Q. What does the white paper mean? (11) A. Usually when you were doing a position piece, yqu (12) were taking a position on an Issue, and there - you know, (13) many points of rationale about it, you would write a white (14) paper. (15) Q. So this is something that would be done by (16) marketing as opposed to strategic - what was the group - (17) A. It could have been done by marketing research. (18) Somebody in marketing research assigned to the Camel brand. (19) That's what it looks like to me, but I don't know. I (20) just - certainly some of the conclusions in this are very (21) familiar. I just don't remember the exact document. I may (22) have seen it before. I just - I just don't know. (23) Q. If you look at page 1. (24) A. Yes. (25) Q. Do you see the first bullet point up there? Page 291 (1) A. Um-hmm. (2) Q. Only five percent of all smokers start smoking (3) after age of 24. (4) A. Um-hmm. (5) Q. So that's information you would have known working (6) on the Camel campaign? (7) A. Again, I don't - I think this Is just a pickup (8) from that earlier Diane Burrows document. (9) Q. Right. But that Diane Burrows document wasn't a (10) document that would have been used by the brand in marketing (11) of cigarettes. That would have gone up to the executive (12) level or somewhere else. (13) A. Yeah, I told you I was in a presentation when the (14) subject matter was presented. I think I told you that. (15) Q. So then you were informed of the smoking habits of (16) people younger than when they actual start - (17) A. You know, this again talks about when smokers (18) start to smoke. I don't know what date it's based on. I(19) don't know If starting to smoke means the first time you (20) experiment with a cigarette. I don't know if it means (21) you've had one cigarette in your life you're - you're (22) categorized in this. I don't know if this number is right (23) or not. (24) Q. Who would know that? Who would know what starting (25) to smoke means for R.J. Reynolds Tobacco Com an ? Page 292 (1) A. I - I'm certain this was based on government (2) data. But if you want to know what this was - what was (3) meant by this, I would ask Diane Burrows, because It looks (4) like she's the one who wrote It. (5) Q. But you think this is a Diane Burrows document? (6) A. No, no. I didn't say that. No. But I think this (7) statement looks like it came directly from her document. (8) Q. Well, were the documents that preceded her that we (9) looked at earlier? Some of the early'70s documents that (10) have that. (11) A. Did that have that (n that? I don't - we can go (12) back and look If you want. (13) A. Only five percent of all smokers start smoking at (14) the age of 24 years old? I don't know, I don't remember (15) seeing that in those. (16) Q. And the second bullet point, do you see that? The (17) majority of younger adult smokers stay loyal? (18) A. Uh-huh. (19) Q. And you that you agree with? (20) A. I believe once a person picks a brand they're (21) going to be loyal to, that they stay loyal to It. You know, (22) again, nearly half of 18 to 20 year olds switch brands (23) with - within two years, so once they settle on a brand (24) they're going to be loyal to, then I believe they are loyal. (25) Q. Are you on page 2? . Page 293 (1) A. Yes. Oh, no, I'm not. (2) Q. Would you take a look at heading B, where it's (3) talking about the promotions that were executed between (4) March 1985 and January 1986. (5) A. Um-hmm. Yes. (6) Q. Do you see the reference to the French Camel (7) T-shirt? (8) A. Um-hmm. (9) Q. It says that redemption of the T-shirt offer was (10) nearly three times higher than its average participation. (11) A. Um-hmm. (12) Q. That's a pretty good return, isn't it? (13) MS. BIXENSTINE: Objection to the form of the (14) question. (1S) THE WITNESS: I don't know what you mean - (16) MS. BIXENSTINE: Return. (17) THE WITNESS: -by return. (18) MR. JANACEK: Q. Well, the redemption was three (19) times higher than average participation in coupons. (20) A. Right. (21) Q. Is that a pretty good result? (22) A. Yeah, of course, it was a free T-shirt, so - (23) Q. As opposed to a free coupon? (24) .A. As opposed to a coupon. (25) Q. Like a buy one, get one free cigarettes thing? Page 294 (1) A. Yes, right. (2) Q. So then if I understand you correctly, the Camel (3) T-shirts were just given away regardless of whether you are (4) a smoker or non-smoker? (5) A. No, that is not true. To participate in our (6) promotions you need to be a smoker and an adult smoker. (7) Q. Did you need to buy a pack of cigarettes or a (8) certain number of cigarettes to get the Camel T-shirt? (9) A. I don't remember. I don't remember this specific (10) offer. (11) Q. Would you turn to page 4. Do you see the (12) guidelines for Camel's advertising development? (13) A. Um-hmm. (14) Q. It's talking about repositioning Camel among (iS) younger adult smokers? (16) •A. Um-hmm. (17) Q. Do you know what's meant by that? (18) A. As background, Camel's desired positioning is an (19) effective one to reposition Camel among younger adult (20) smokers. I believe I do. (21) Q. What's that mean to you? (22) A. It means that we want to change the image of Camel (23) among younger adult smokers. (24) Q. So you were going to start focusing your efforts (25) on the Younger adulta? Page 295 (1) A. No. What that says b reposition.Camel among (2) younger adult smokers. So you want to change the image of (3) Camel 4 Page 289 to Page 295 (415) 392-0650 Tooker & Antz 05 1_::~ ILA aia~-(~
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BSA Mangini vs R.J. Reynolds Lynn Beasley - S,'.9/97 (17) A. I don't know. I doubt it. (18) Q. Can you turn to page 2. (t9) A. Yep. Yes. (20) Q. Do you see the character type, Joe the Beast? (21) A. Um-hmm. (22) Q. Any idea who Joe the Beast is? (23) A. No. (24) Q. That's not Joe Camel? (25) A. I don't know. I've never seen this before. It Page 343 (1) sounds bizarre. (2) Q. Can you turn to the last page of this document. (3) A. Yes. (4) Q. And I know it's a poorly reproduced copy, but it's (5) the best one we've got. I don't know if Reynolds has a (6) better copy. (7) Do you see the pictures that are on the back of (8) the page? (9) A. Um-hmm. (10) Q. You see what looked to me to be images of Joe (11) Camel. Does that look like the Joe Camel icon? (12) A. It does. We did not - we did not do these (13) things. A camel stuffed animal. A skate board? We didn't (14) do those things. (15) This is a - a proposal from an outside agency, (16) obviously. But we - I had never saw this document before, (17) but I know we did not do a camel stuffed animal or skate (18) board. (19) Q. Who - you weren't - you had moved on by 1989 to (20) the special markets department, right? (21) A. Right. (22) Q. Who would have been the person at the Camel brand (23) that would have discussed new promotions, if that's what (24) this is? (25) A. Cliff Pennell was the brand - senior brand Page 344 (1) manager. (2) Q. This would have been Cliff Pennell? (3) A. I believe so. (4) Q. Okay. Can you turn your attention to the second (S) to the last page? (6) A. Yes. (7) Q. Do you see the three studies that are identified? (8) A. What do you mean, the three studies that are (9) identified. (10) Q. Weli, on the left, it says Study 17S, very young (11) adult. In the middle, it says Study 23S, young adult. (12) A. Yes. (13) Q. Maybe I'll ask this, since I was assuming those (14) were studies. (13) The information that's below or in Page 342 to Page 346 those columns, (16) are those information - is that information that would have (17) come out of a focus group, for example? (18) A. No. (19) MS. BIXENSTINE: Objection. (20) THE WITNESS: They - this is not - we - we only (21) did focus groups among adult smokers. (22) I don't know where they got this information. (23) What they say is these - please note, these are not intend (24) to cover the Camel psychographic. Not intended to cover the (25) Camel psychographic. They serve merely as a stud as we Page 345 (1) probed ideas to relate to the target group. It sounds like (2) it was ideation on their part. (3) MR. JANACEK: Q. What's ideation? (4) A. Sitting around and brainstormingideas. Ideas. (5) Q. Now, would that be a study? (6) A. No. When you sit around and brainstorm ideas, (7) that's not a study. (8) Q. But it's identified as Study 17S? (9) A. That's what - (10) MS. BIXENSTINE: Objection. That's not a (11) question. (12) THE WITNESS: What they say here is they serve (13) merely as a study as we probed ideas to relate to the target (14) group. I don't know what they did. (15) MR. JANACEK: This is probably a good place to (16) take a break, since the court reporter needs to change his (17) tape. (18) MS. BIXENSTINE: I thlnk we should stop for the (19) day. We've been going for nine and a half hours, and it's (20) about 9:30 Eastern Time. It's been a long day for (21) Ms. Beasley, so I think we should conclude for the day. (22) MR. JANACEK: Should we start earlier"tomorrow? (23) Would that help everyone? (24) MS. BALLINGER: Earlier than 9:00? (25) MR. JANACEK: 8:00? I'll leave it up to you. Page 346 (t) MS. JOHANN: How were you doing, Frank? Did you (2) get - (3) MR. JANACEK: Well, I got to where we got (4) yesterday. So we'll have a good gauge at least when we talk (S) to Mr. Morrissey again as to how long his depo will take. (6) T#iE VIDEOGRAPHER: Shall we go ahead and go off (7) the record now? (41S) 392-0650 i81 ~iR. JANACEK: Yes, you can go off the record. (9) THE VIDEOGRAPHER: This marks the end of Videotape (10) No. 4 in the continuing deposition of Lynn Beasley. We're (11) off the record at 6:26 p.m. (12) (Whereupon the taking of the Witness' testimony (13) was concluded for the day at 6:26 p.m.) (14) ---000--- (18) DATE SIGNATURE of the WITNESS 346 Tooker & Antz 51-41q a13a,A 4
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SDJU: che planned launch. The second (S) paragraph. starting with Project LF. (9; A.1'es. (10) Q. And you saw that Project LF was a wider (11) circumference, non-menthol cigarette urgeted at younger (12) adult male smokers. (13) A. Right. (t4) Q. Primarily 13 to 24 year old Marlboro smokers? (t5) A. Right. That's a typo. (16) Q. You think that's a typo. (17) A. I'm sure It is. You can look back on the document (18) here and it says target 18 to 34 male. (19) Q. So the 24 is a typo, too? (20) A. No. I'm sure that this was a case of primary and (21) secondary target, and they were summarizing the total target (22) here. (23) Q. And - (24) A. See, it says - it even says that. See, it says (25) 18 to 34 male non-menthol 80-83 millimeter full f)avor/FFLT Page 338 ( I) smokers with primary emphasis on the 18 to 24 age group. (7) A. You allocate more marketing dollars to that area (8) because you believe you have the opportunity to switch more (9) competitive smokers. (10) Q. What is BDI? (11) A. It's brand development index. (12) Q. What is a brand development index? (13) A. If you take the brand sbare In the total U.S., and (14) then you take the brand share in the Boston region, a 119 (15) Index for Marlboro would say Marlboro shares overdeveloped (16) by 119 In Boston compared to the total U.S. (17) So if your Index Is over 100, It's higher than the (18) total U.S. If your Index is under 100, it's lower than your (19) total U.S. share. (20) Q. So it's a share number? (21) A. It - it doesn't have to be. You could do a BDI (22) based on volume. I think this was probably done on share, (23) but - (24) Q. I mean that's a - that's a number of cigarettes (25) number as opposed to a number of advertisements that you (2) (3) Q. Where are you looking at? A. The third page in, Project LF. Page 340 (I) plan to put in the market number? Back - on the (4) third page. (2) A. The BDI? (5) Q. Got you. (3) Q. Right. (6) A. Or, I'm sorry, It's the fourth (4) A. Oh, that's about brand page of pages, I(7) guess. One, two, three, four. (8) Q. Okay. So did Emily Bitz - Emily Bitzel or Ann (9) Biswell - (10) A. Emily Etzel. (11) Q. Sorry. Emily Etzel or Ann Biswell ever tell you (12) that was a typo? (13) A. No, it's just obvious that it is. (14) Q. You're just surmising from reading the document (1S) that it's a typo? (16) A. Right. It looks - it's very apparent to me it (17) is. (I8) Q. Turn to the next page. (19) A. Which page? (20) Q. Starting with the priority reasons - regions, I'm (21) sorry. (22) A. Um-hmrn. (23) Q. What's a priority region? (:4) A. Normally, that's a region that' you put more (25) marketing support behind because you believe your brand has Page 339 (1) more opportunity to generate competitive switching In that (2) area. (3) Q. So you try to get more advertising in that area? (4) A. More advertising, maybe more in-store promotion. (5) It depends. But you - (6) Q. More - performance, yes, sure. (5) Q. Now, I notice that San Francileo is a priority (6) region. Do you see that? (7) A. Um-hmm. (8) Q. So if I understand you correctly, that means that (9) San Francisco received more - more money was spent in (10) San Francisco on advertising and promoting Camel cigarettes (11) than in other parts of the country? (12) A. Well, again, this is a document about LF. So it (13) may have been - it looks to me like this is where they (14) propose that more money be spent on the LF introduction. (tS) So this doesn't relate to the Camel marketing (16) plan. They're talking about hypothetically when we (17) Introduce Camel Wides, where they think the priority region (18) should be. (19) And I think at the beginning of this document they (20) say: As discussed, the Brand will explore introducing (2 t) Project LF in 13 priority regions rather than a traditional (22) national launch. So I suspect what they're actually talking (23) about is these are the regions we're going to launch it in (24) and these are the regions %%e're not. rather than - I mean f_5. in this case. it's no marketing support or being introduced. Page 341 (1) Now, I don't know as that actually happened that (2) way. I don't think it did. (3) Q. When you were on the Joe Camel account, was (4) San Francisco ever a priority region? (5) A. When I was on the Camel brand - (6) Q. Camel brand. I'm sorry. (7) A. Again, it's our sales regions. It's our RJR (8) defined sales regions. And we have a Northern California (9) region, we have a Southern California region. I don't (10) remember having a San Francisco region. But we may have at (11) one time. I don't know. (12) Q. Do you know if the Northern or Southern California (13) regions were priority regions? (14) A. For Camel? (IS) Q. For Camel? (16) A. When? (17) Q. When you were on the brand? (18) A. Yes. (19) Q. Has it been a priority region from the beginning (20) of the - excuse me, the beginning of the campaign? (21) A. I would say so, yes. (22) Q. Is there any point in time during the campaign (23) that the Northern and Southern California regions were not (24) priority regions? (25) A. I don't think so. I would have to go back and Page 342 (1) literally check every year, but I don't think so. (2) Q. Ms. Beasley, I'll hand you a document which I'm (3) going to have - or excuse me. which the court reporter has (4) previously marked as Plaintifrs Exhibit 16. (5) A. Um-hmm. (6) Q. Have you seen this document before today? (7) A. No. (8) Q. Do you recognize the name Griffis/Jordan? (9) A. I recognize the name. ((0) Q. What is Griffis/Jordan or who is, Griffis/Jordan? ( t t) A. I don't know. It says Advertising and Public (12) Relations, Incorporated, 870 West Fifth Street, (13) Winston-Salem, North Carolina. So I believe they're an ad (14) and public relations agency in Winston-Salem. (13) Q. Do you know if they worked on the Joe Camel (16) campaign in 1989? Page 337 to Page 342 Tooker & Antz (41SZ,392-0650 51714 2132
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BSA Manginl vs R.J. Reynolds Lynn Beasley - S/29/97 V.,.X ,l: Franchise. Then it says: The 14 (24) to 24 age group in 1960 was 21 percent of the population; (25) in 1975 it will be 27 percent. As they mature, will account Page 332 (1) for key share of cigarette volume over the next 25 years. (2) MR. JANACEK: Q. And you saw at the beginning at (3) the top again that that was the primary goal in 1975? (4) MS. BIXENSTINE: Objection. (5) THE WITNESS: The primary goal in 1975. It says: (6) Primary goal in 1975 and ensuing years is to re-establish (7) RJR's share of growth in the domestic cigarette industry. (8) That's what it says. (9) MR. JANACEK: Q. And it says that this will be (10) done by the following, right? (11) A. This will be done by the following. (12) Q. And one of the following that we were just talking (13) about, the increase in the young adult franchise? (14) A. It says Increase our young adult franchise. (15) Q. And it also identifies, again, the percentage of (16) share of 14 to 24 year old smokers for a couple of brands, (17) Winston and Salem. (18) A. Um-hmm. Um-hmm. (19) Q. Ms. Beasley, I'll hand you a document which (20) I'll - has previously been marked as Plaintiff s Exhibit 15. (21) Have you seen that document before? (22) A. Yes. (23) Q. When did you see that document? (24) A. When I was preparing for another deposition. It (25) was shown to me and asked It I recalled It. Page 333 (1) Q. What deposition? (2) A. I believe It was when I was preparing for Moore. (3) Q. The Cooper deposition you were talking about? (4) A. No, no. Not Cooper. Moore. (5) Q. So there was another depo? Have you had your (6) deposition taken in Moore? (7) A. No. It was scheduled twice and they canceled at (8) the last minute. (9) Q. So you've seen it then? You didn't see this more (10) recently, this document? (11) A. That's what I meant. It's been recently. (12) Q. No. But that was the last time you saw it, was (13) the - in preparing for the deposition? (14) A. Right. Right. (is) Q. We talked about Project LF that you thought was (16) Camel Wides. (17) A. Um-hmm. (18) Q. Does this document reinforce or refresh your (19) recollection as to whether it was Camel Wides? (20) A. It looks like It was. Project LF is a wider (21) circumference non-menthol cigarette targeted at younger (22) adult male smokers. (23) Q. Can you tell me who Emily Bitzel is or did I get (24) in a name right? (25) A. Emily Etzel. Page 334 (1) Q. Etzel. E-T-Z-E-L? (2) A. Um-hmm. She's In marketing research. (3) Q. In marketing research? (4) A. Um-hmm. (5) Q. Does she work on Camel brand? (6) MS. BIXENSTINE: Currently? (7) MR. JANACEK: Q. In 1987. (8) THE WITNESS: Gosh, I couldn't tell you in 1987. (9) MR. JANACEK: Q. What was her relationship as it (10) related to you in 1987, early 1988? (11) A. She wasn't the marketing research person assigned (12) to Camel In 1987, so I'm not sure. (13) Q. Did you work with her? (14) A. I've worked with her. I don't know U I did -(13) you know, I worked with her In I belleve 1982 when I joined (16) the company. (17) Q. Did you work with her on Camel when you took over (18) that; when you were assigned the Camel brand? (19) A. She was not the research manager when I joined the (20) Camel brand. (21) Q. So you didn't work with her? (22) A. You know, I - she wasn't the person assigned to (23) Camel. I'm not going to say I didn't work with her, but - (24) Q. You don't remember working with her? (2$) A. I don't remember working with her on specific Page 335 (1) Camel issues in 1987. (2) Q. What about Ann Biswell? (3) A. I don't know. (4) Q. You don't know who she is? (5) A. No. ; (6) Q. Did you work on the Camel Wide promotion? . (7) A. Camel Wide introducilon, you mean? (8) Q. Yes. (9) A. No. It waa - I think It was - It was Introduced (10) when I was not on Camel. (11) Q. When did you get assigned to Camel9 (12) A. In June of 1987. (13) Q. Okay. And this is - I see. It's the Camel Wide (14) was planned for launch in January of 1989. (15) A. Right. (16) Q. Do you know if that plan - that was the time (17) frame that it was launched? (18) A. I'm trying to remember, but I think It was later (19) than that. I think It was more like maybe '92. (20) Q. So you - you would have been involved in Camel (21) when Camel Wides were launched? (22) A. No, I don't believe I hsd responsibility - no, I(23) didn't have responsibility for Camel when Camel Wides was (24) launched. (25) Q. Correct me if I'm wrong. Maybe I'm just Page 336 (1) mishearing you. I thought you said you began working on (2) Camel in 1988. (3) A. In June of 1987. (4) Q. June of 1987. I'm sorry. (5) A. Um-hmm. (6) Q. And you worked on Camel through what period? (7) A. I was senior brand manager of Camel until April of (8) 1988. Then in April of 1988 I moved over to. special (9) markets. Remember, I told you that? (10) Q. Okay. Now I understand. Thanks. (11) Who is J.H. Miller, if you know. (12) A. J.H. Miller. I don't know. It doesn't ring a (13) bell. (14) Q. When you were at special projects - I'm sorry, (15) special marketa? Who did you report to? (16) A. Larry Hall. (17) q. Larry hall? Okay. And who was Larry Hall? What (18) was his position? (19) MS. BIXENSTINE: Objection. Asked and answered (20) this morning. (21) THE WITNESS: He was - at the time'I reported to (22) him he was vice president of strategic marketing. I believe (23) that's what it was called. (24) MR. JANACEK: Q. At the very bottom there's a cc. (2S) to H.T. Parks. Do you see that? Page 337 (1) A. Um-hmm. (2) Q. Who's H.T. Parks? (3) A. Howard Parks. He was in marketing. (4) Q. Do you know what his title was or role? (5) A. In 1987, I don't remember. (6) Q. Did you read the next - we talked about the first (7) paragraph and Tooker & Antz Page 331 to Page 337 (415) 392-0650 'S1~I~ o+t I3I h 4
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BSA Mangini vs R.J. Reynolds Lynn Beasley - 5/29/97 those smokers are (9) Marlboro smokers. So obviously it Includes Marlboro's - (10) adult Marlboro smokers in those age groups. Marlboro has (11) like a third of the market, so It obviously - and we're (12) trying to generate competitive switching. So it obviously (13) includes adult Marlboro smokers. (14) Q. Is the term Marlboro smoker used by Reynolds (15) routinely? (16) A. Of course, yes. (17) Q. I see. Do you see number 3 there? (18) A. Yes. (19) Q. Correct in-market weakness, make a younger adult (20) smoker statement? (21) A. Um-hmm. (22) Q. How did Reynolds accomplish that purpose? (23) MS. BIXENSTINE: Objection. It calls for (24) speculation. And it assumes facts not in evidence. (25) THE WITNESS: Look, like I told you, I can talk to Page 301 (1) you about I joined Camel in 1987, I direct - they turned in (2) the French Camel poster into a Joe Camel campaign was my (3) idea. I directed the development of it, I directed the (4) implementation of it and I can talk to you about what that (5) accomplished. I cannot talk to you about a document that I(6) don't know when it was dated, I don't know who wrote it and (7) I don't know what was done with. (8) Q. So you weren't involved - if I've got you, you (9) weren't involved in the decision-making process on how Camel (10) was repositioned? You just - you accomplished the task (11) once someone had made that decision? (12) MS. BIXENSTINE: Objection. It mischaracterizes (13) her testimony. (14) THE WITNESS: When I got to Camel, the target for (15) Camel was 18 to 24 adult smokers, prime prospect. Secondary (16) prospect, 25 to 34 adult smokers. Camel - current Camel (17) adult smokers. (18) 1 felt that was correct and right. If I didn't, I(19) would have questioned it. But that was the target when I(20) joined the Camel brand. (21) MR. JANACEK: Q. Do you have any information as (22) to why Reynolds went with a variation of the French Camel in (23) the Joe Camel campaign? (24) A. I directed - it was my idea to use the French (25) Camel poster and develop a campaign around It. Page 302 (1) Q. Where did you get that idea from? (2) A. In mid.July of 1987 I was at focus groups on (3) promotion ideas on Camei. And the groups were 18 to 34 (4) adult competitive smokers, as well as Camel franchise (5) smokers, current smokers of Camel. Adult smokers. (6) And a woman who waa conducting the focus groups (7) for us had brought with her a French Camel poster. And she (8) brought it out during the course of the groups. And I saw (9) everybody in the room react incredibly positive. They were (10) entertained, they thought it was clever, they thought it was (11) fun. And this was - we were just working on promotions. (12) And I thought, a light bulb went off in my bead (13) and I thought "This Is something that people find different (14) and fun and I - I wonder if we can turn this poster into a (15) campaign to celebrate Camel's 75th birthday in 1988." (16) And then after those groups, I gave direction to (17) agencies to work on doing that. It was my idea. I directed-(18) the development and the implementation of it. The target (19) and the documents refiect this was adult smokers, clearly. (20) The objective was to maintain brand loyalty and (21) generate competitive switching. And that Is the.direetion (22) that was given to the agencies. We did research among adult (23) smokers only. People outside of this company no longer (24) asaociated with us have confirmed that that is in fact what (25) we were doin . Page 303 (1) Q. And you were completely unaware of the French (2) Camel T-shirt promotion? (3) A. No. As I told you, I knew that had run in (4) December of'85, January of'86, somewhere around there. (5) And I thought that was all the more reason. You (6) know, upon reflecting on it, once it occurred to me that (7) idea, well, we'd done the T-shirt and that seemed to have a (8) lot of interest as well. That wiu even more reason that to (9) believe that maybe we could turn this Into a campaign for (10) Camel. (11) Q. And you did that not knowing that Reynolds had (12) conducted focus groups on the French Camel in 1985? (13) A. No, I did not know that. I had not seen that (14) focus group report. (1s) Q. Do you know who was responsible for the 1985 focus (16) group? (17) MS. BIXENSTINE: Objection. Asked and answered. (18) THE WITNESS: Again, it was Rick Caufield was my (19) boss, and the report went to him. And I believe Alicia (20) Nance Mitchell wrote the report, who was an employee in (21) marketing research. (22) MR. JANACEK: Q. Do you know who was responsible (23) for the French Camel T-shirt promotion? Would that have (24) been Rick Caufield again? (25) A. I believe so. Page 304 (1) Q. And when you decided to go with the Joe Camel (2) campaign, were you aware of the tremendous response with (3) respect to the French Camel T-shirt? (4) A. Yes. (S) Q. Do you know who got the French Camel T-shirts? (6) A. What do you mean, who got them? (7) Q. Who they were sent to, who they.were provided to? . (8) A. It would have been adult smokers. (9) Q. Was there - did you have information with respect (10) to were they sent out on a mailing list so that you've got (11) names and addresses? (12) A. I believe it was - I don't know. I think it was (13) a magazine offer, but you know, I don't remember all the (14) details of it. I would have to go back and look it up. (15) Q. You said it was given to adult smokers. How do (16) you know it was given to adult smokers? (17) A. I - I don't recall the exact procedures they had (18) in place. But that's who our promotions are for, adult (19) smokers. You know, we'd have to go back and look at the (20) exact procedures that were used to ensure it was adult (21) smokers. I'm sure there were some. (22) Q. Were you aware, prior to your creation of Joe (23) Camel, of the discussions surrounding repositioning Camel as (24) a younger brand? (25) A. Yes. Page 305 (1) Q. How were you aware of that? (2) A. I knew that Rick Caufleld, the current brand (3) manager was trying to find a campaign to reposition Camel to (4) appeal to adult smokers 18 to 24. And he was working on (5) that, and the agency was working on that when I joined (6) Camel. They had campaign ideas on the table when I joined (7) Camel to try and accomplish the objective of I Page 300 to Page 305 (415) 392-0650 Tooker & Antz -s1--+ILA aka%Pf
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recall and playback. What's playback? (15) A. That would be remembering the message. They must (16) have had a refreshment message, and it - would be - being (17) able to remember that message and play it back. Say what It (18) was. (19) Q. So is playback or saying it back the same thing as (20) recalling what the ad said? Is that the same concept? (:1) A. I would say that's the same concept. (22) Q. Any other reasons why you would measure recall? (23) A. Any other reasons than what? (24) Q. Than what we were just talking about, to see if (25) the message is being effectively communicated or remembered Page 327 (1) or- (2) A. Noticed and remembered. (3) Q. Noticed and - those are the two (4) A. Um-hmm. (5) Q. - reasons? Can you turn to numbers 997. (6) Actually, I'm sorry, they've changed it on me. It's now (7) vertically on the bottom of the page. or horizontally number (8) 342. (9) A. Yes. (10) Q. Do you see that? ( I 1) A. Um-hmm. (12) Q. Okay. We were talking earlier about Reynolds not (13) having any information about how many cigarettes would be (14) sold or market share in metropolitan areas like Los Angeles (15) or San Francisco. (16) A. (Witness nods head.) Um-hmm. (17) Q. What does this chart appear to be? ( t 8) A. It - it says Percent Industry and RJR 1973 Volume. (19) You know, obviously, this could be what I told (20) you, which is MSA. And all MSA is Is the accounts we. se11(21) to that are located in that geography. It does not mean (22) cigarettes are sold In that geography. Those wholesalers (23) can ship to all - you know, many ship to many, many (24) states. " Product is shipped in from outside the area from (25) other wholesalers. They may have been using it as a )'rOXy. _ Page 328 (1) 1 don't know. But It could be that's what it is, because (2) they're talking about volume. (3) So probably what they did is they used MSA volume (4) and assumed, which Is incorrect, but assumed that that (5) represented what was sold in the metropolitan area. I'm (6) guessing by what they say. They don't say what the source (7) is, but - (8) Q. Reynolds at least - at least in 1973, since this (9) is talking about 1973 volume, had some way of estimating the (10) number of cigarettes - (11) A. No, it doesn't say that. (12) MS. BD{ENSTINE: Objection. Calls for (13) speculation, since Ms. Beasley was in high school at that (14) time. (1S) THE WITNESS: It doesn't say that. It says - you (16) know, it's not a means of estimating. (17) We can tell you how many cigarettes we sold to (18) wholesalers in New York. That has - could bear no (19) relationship to the cigarettes that were sold in New York. (20) That could be what this data is. I don't know. (21) It doesn't say the source. (22) MR. JANACEK: Q. No, it doesn't say the source. (23) Can you turn to, again, the bottom of the page, (24) page 348. (25) A. Yes. Page 329 (1) Q. Do you see item number 2, where it's talking about (2) improving our metro market share? (3) A. Um-hmm. (4) Q.,.How would Reynolds know if it was improving its (5) metro market share? (6) A. I don't know. Again, they might have been using (7) MSA data. (8) Q. Would - (9) A. Who knows. (10) Q. Do you know what the term metro market share (11) means? (12) A. I don't know exactly what they meant here. I(13) could tell you what I thought it meant. (14) Q. That's not a term that you have used in your (IS) employment at R.J. Reynolds Tobacco Company? (16) A. No. (17) Q. In your employment at R.J. Reynolds Tobacco (18) Company have yoli looked at information discussing - any (19) Nielson tracking information or other information discussing (20) the number of cigarettes sold in a particular metropolitan (21) area? (22) A. I don't know. I don't recall. I don't recall (23) doing that. (24) Q. You don't recall that? (25) A. We - we align our share information according to Page 330 (1) our sales regions. (2) Q. You don't remember seeing any information on how (3) the - let me just \%I A.\.:-. give you an example. the Hispanic market (s) is doing in Los Angeles. (5) A. We may have done some special studies on the (6) Hispanic market. That's possible. We don't have an ongoing (7) tracking system that gives us how much - how many (8) cigarettes we sell in Los Angeles. We may have done a study (9) at one time to see what our share was in Los Angeles at one (10) point in tiune. That's possible. (11) Q. So you might do spot research on how the share is (12) in a particular - (13) A. Sure, absolutely. We have done spot research on (14) cities. We might be testing a brand in a city, and you'll (15) want to find out what the share is. (16) Q. And how do you determine what the share is in a (17) particular city? (18) A. If you were going to do that, or what we have done (19) is we go in and It's the same process as our national share (20) where you take a sample. Only now you go in and take a(2)) sample large enough to represent that metropolitan area. So (22) you have to take - you get a bunch more stores than you (23) would otherwise sample in that area so that it can (24) statistically represent that area. (25) Q. Ms. Beasley, I'll hand you a document which has Page 331 (1) previously been marked as Plaintiff s Exhibit No. 14. Take (2) a look and see if you've seen that document before. (3) A. I haven't seen this before. (4) Q. You've not seen that before? (5) A. (Witness shakes head.) (6) Q. Did you notice on the first page the first bullet (7) point? Did you read that part when you were - (8) A. Um-hmm. Yes. (9) Q. And you saw that, again, it said that the 14 (10) age - 14 - the increase in our young adult franchise, and (11) it identifies that-as 14 to 24 age group. (12) MS. BIXENSTINE: Objection. (13) THE WITNESS: Could you say that again? (14) MR. JANACEK: Q. Do you see the first bullet (1S) point. the heading there? (16) A. Um-hmm. (17) Q. Increase Our Young Adult Franchise? (18) A. Um-hmm. (19) Q. All right. And you see that the young adult (20) franchise it identifies is 14 to 24 age group? (21) MS. BIXENSTINE: Objection to the characterization. (22) THE WITNESS: It doesn't say that. It says (23) Increase Our Young Adult Page 326 to Page 331 Tooker & Antz (415,t 392-0650 51714 2131
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Look-See Concordance 17 (7! 177:11. 24; 191:10: =85:1 S 299 (:1 3_6:6. 10 Report 309:19: 2SS: 7, 20; 236: ! 0 1993 (a) 50:16: 51:8. 18: 29th (4) 5:10: 91:7: 188:1=: 17S (3) 191:3; 344:10: 345:8 179:1 271:2 18 (129) 37••17, 18; 40:3. 20, 1994 (11179.•3 2:07 (2) 188:10, 11 UNIQUE WORDS:3,848 23; 33:14, 17, 21; 54:3, 7, 22; 1997 (11] 5:10: 53:11; SS:17•• 2:19 (21 188:11. 12 TOTAL OCCURANCES: 20,079 SS:19; 61:12; 62:18; 104:10• 61:10; 91:7,• 163:16, 22; NOISE WORDS: 38S L WORDS IN FII E T 25: 176:12. 1 S, 17 21: 177•16; 165:13; 166:9; 188:14: 271:2 -3= . : OTA 178:4; 191:11; 196:3; 200:1, S, 59,432 17 19 208:20 7 209:6 -Z- 3[7) 40:17; 44:14• 20: 133:19: , ; , ; ; 188:13; 270: 22: 300:17 210:6; 211:1 3 12 16 19 24; SINGLE FELE CONCORDANCE , . , , , 213:1; 243:22 212 9 15 2(28] 40:11, 14; 44:14; 60:20; 3,000 (2)199:2, 11 . , , , 91:6; 188:9; 221:25; 247:6 7 30 [1] 224:25 25: 244:1 10 6 16 18 20 , , CASE SENSITiVE , , , . , , 24; 243:2 22 8 9 12 13 18 10; 251:17,• 257.•13; 263:16: 34 (20] 175:19; 176:13. 18, 21. , , , , , , , 264:6 • 284:5 9; 288:7 8; 8 25; 178:1 S 16; 179:22: 180:6: 19, 20, 23, 24; 246:1: 247:22; , . , , 24 289 2S 18 292 2S 311 , 181 10 232 23 245 46 10 NOISE WORD LIST(S): 248:8; 252:1 S: 2S3:S: 234:14 ; : , ; : : : : : : : : : 2 :1: Iv'OISE.NOI , . 18 256 3 21 255 13 13 21 322:19: 329:1; 342:18 299:16; 300:7; 301:16: 302:3: , , ; : , , ; : 20 (37) 65:13; 105:3 9 13; 303:8; 337.•18 25 4; S 20 25: 264:2 3 9 18: . , , INCLUDES ALL TEXT , . , , , 7;266:13 22 265:1 2 5 25; 110:18: 176:1 S; 200:1, 4; 342 (1) 327:8 OCCURRENCES , , , , , 203:6; 208:20; 244:11, 18, 22: 348 (1) 328:24 267:2, 3, 4, S, 7,15, 23: 268:5, 245:2 18 23; 246:1: 8 12 35 (3)177.•2; 178:16: 208:21 6, , , . , 4 254:21; 2SS:1S; 256:3 S 35• ltu 123 177 •7 18 INCLUDES PURE NUMBERS 11, 21, 23; 269:19, 24: 274:1, , , , 259 •6 264 18 265 1 5 7 25 p . 36 2 259 1 S 308 11 3; 279:7; 282:23; 285:15; : ; . : : . . ; , •2S 268 266 12 267 11 ( ) : ; : 375 284 1 12 WORD RANGES ® BOTTOM OF PAGE 292:22; 299:1S; 300:6; 301:15; 24; 302:3; 305:4 8; 310:12 ; : : . : : 292: 22; 314: S: 321:19: 323:12 : ( 1 3:15 (21230:14, 16 . , 20-plus (1) 314:5 3:20 (21230:16 18 312:4: 315:11; 318:1; 321:18, 24 2025 1 6 , -~- 19, 22, 24; 337:18, 25; 338:1 ( ) : 21(43)105:4; 175:18; 210:6 -4- 0163 (1) 246:12 19 (12) 83:4; 104:10, 25, . 16 9 12 17 20 23 211:1 3 058 (2) 206:4, 6 191:11; 196:3; 200:7, 17; , ; , , . . . , 24; 212:7 213:1: 8 15 4132) 52:14: 134:10: 133: 2; 059(11221:10 207.•2S; 248:8: 252:18; 267:6; . , , 23: 244:2 10 20; 232:21 136: 2; 137.•2: 138: 2: 139: 2: 321:18 , , , 245 246 254 23 18 1 16 140:2; 141:2: 142:2; 143:2: -1- 1900s (1) 201:22 : : : : ; , ; 4 256 8 2SS 13 19 21 144: 2; 145: 2: 146: 2: 147: 2: 19S0 ('2] 318:24; 320:1 5 , : : : , , ; 148:2; 149:2; 130:2; 151:2: 1(12) 5:3; 40:17; 91:2: 221:17, 1960 (11331:24 257.•3, 8. 10. 11: 285:2, 14, 15, 152:2; 153:2: iS4:2; 1 SS:2: 18. 24, 25. 247.•1 S; 253:14; 1973 (6) 285:6; 286:1; 318:3; 22, 24; 286:3; 320:16;.331:24 156:2; 170:22; 205:19; 221:11; 263:21, 22; 290:23 327.•18: 328:8, 9 2212) 105:4; 179:11 7 • 188 14 222 Sal 91 4 266:1: 271:1; 294:11: 306: S: 10(10)24:19,20: 62:13: 1974 (2) 206:10; 318:13 ; , ( 3 ; : : 346:10 110:19;131:1;168:11;196:17,• 1975 (11) 66:3: 319:12, 1618, 271:2 4 277 237 276 17 19 20 2 40(1)321:19 266:12: 283:18; 323:12 25: 320:6, 19; 33195, 33i. 3, ) ( : . , ; : d 17 • 61 10 3 11 SS 410 (4) 5:17.• 91:10: 188:17,• 10-year (3] 313:22, 23. 24 5 6 , : 23r (3) 5 : ; : 271: S 100 (2) 339:17, 18 . 1976 (7) 314:5, 22; 317:12, 23S (1) 344:11 18 24 102 18 103 8 13 11 415-57i-3603 (1) 5:18 100s (1) 109:2 23 2S: 319:6 15 : ( : : : : : S) 42 (5) 254:20: 256:3, 5. 24: 10:52(2191:3,4 , , 1979 (1) 261:6 104:1, 6; 175:18: 176:12, 17,• 321:19 10th (4) 5:12; 91:8: 188:15; 1981 (1) 66:14 178:1 S, 16; 179:22; 180: 6: 211 1 2 209 6 210 6 181 9 44(1)251:8 271:3 1982 (5) 66:1 S: 207.•1 S: 285: 9; , . : : : ; : : ; 47(1)261:4 11 (1] 289:19 4 34 9, 19. 20; 243:22, 25; 244:1, 2, 49(1)208 21 .11 :14 3 :15 24 13 18 20 6 16 245 9 : 119 (2) 339:14, 16 1984 (161 77 •23: 223:18; ; , , , , , : . 4:16 (2) 270:23. 24 11:10 (2) 91:4, 6 . 224:2 3; 237 •24; 238:4; 19, 20, 24; 246:1; 248:12, 19; 430 (2) 270:24, 25 11 56 2 130 6 8 . , 254:14, 16, 18, 24: 2SS:4 : ( ) : , 12 (2] 309:21; 311:7 246:25: 247.•20; 252:16, 17, 18: 272:15,16; 273:13: 256:8, 20; 257:3; 264:10; 6 21 267:15 268:5 265 2 -S- 12:55 (2] 130:8, 10 24 318 11 13 203 11 193 5 274:11, 12 , , , : ; ; 23; 269:19, 24; 274:1, 3; 5(7] 6:24; 222:25: 264:2. 15; ; : ; : ; : ( ) 1985 (12) 80:18, 22: 82:1, 16; 15 7 14 299 3 292 279 291 • 306: 7 295:12 299:7 337:14; 340:21 175:22; 176:2, 6; 276:21, 23; ; ; ; : ; : : : ; , 131 (1) S: 22 300:6; 301:15; 305:4, 8: 319:7, 50(1)321:19 205:1; 14 (30) 203:11 204:17 293:4: 303:12, 15 10, 19; 320:12, 16, 21; 321:23• 500 (5) 49:9, 12: 130:17. !9; ; ; 1966 (2) 293:4; 295:7 324 4 22 24 322 323 1 131:23 282:23; 310:12, 24; 311:18; 1987 (35) 45:6,11; 51:8, 18; : ; : ; ; : ; 24; 332:16; 20 331:11 54 (1) 209:17 312:9; 315:11; 318:1; 319:7, 52:7, 10; 53:6: 81:6; 84:2. 10: , . 14 19 338 1 337 56 (1) 319:1 10. 19; 320:12, 16, 20; 321:7, 118:14; 168:17: 199:19. 23: , : ; : 21 54 23 25 (22 53 9 59(1)221:10 11. 12: 322: 22, 25. 324: 4; 26I :•6: 263: 3; 2 79: 6; 280.1. 13; : ; : ) : , 18; 245:10: 175:19; 176:13 5:30 (I) 309:22 331:1, 9. 10,11,20,23; 332:16 281:1. 6: 297:14; 299:14, 21: , 246:1; 2SS:4 7. 19. 20; 256:8. 5:32 (2) 310:4. 6 301:1; 302:2: 334:7. 8. 10, 12; • 10; 257:3; 299:16: 300:7 5:35 (2) 310:6 7 15(12)104:20; 191:14,15: 4; 337:5 12: 336:3 335:1 , . 196:2, S, 9; 203:10; 205:1; , , 1988 (14] 79:23; 176:10, 21; 301:16; 305:8; 332:1 6 321: 7. 11, 12: 332:20 23; 213:1 S; 216:3; 199:19 26 (2) 267:17,• 269:1 - - 156 (23) 134:10; 135:2: 136:2: , 281:3; 301:1 S: 309:10; 334:10: 27 (4) 179:3, 11; 320:19: 6(9) SS:11, 16, 18; 60r2S: 139: 2: 140: 2 137 138: 2 2 331:25 323:21 260:23 263:17 ; : ; : 336:2, 8 28 (1) 322: 22 ; ; 141: 2; 142 : 2: 143: 2: 144: 2; 1989 (6) 213:23; 216: 9, 15; 60s 111201:25 145: 2: 146: 2: 147: 2; 148: 2: 335:14; 342:16: 343:19 29 (4) 255:7, 20; 256:10: 63 (4) 5:17,• 91:10: 188:17; 149 150:2 151:2 152:2: 2 258:18 271:5 ; ; : ; ! S3: 2; 1 S4: 2: 1 SS: 2: 1 S6: 2 1991(11178:25 19: 193:17 • 1992 (13] 194 •18 291 (1) 278:5 6:26 (2) 346:11 • 13 16 (B) ! 04:20; 191:10, 14, 1 S; . . , 25: 213: 8 210: 9 21; 212:12 297 (1) 326:8 196:2• 5: 205:1: 342:4 , . . 10: 244: 9: 255:17,• 257: 7,• 298 (1) 326:8 Tooker & Antz (4 Z) 392-0650 From 0463 to 6:26 51714 2133
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es., Mangini vs R.J. Reynolds Lvnn Beasley . r l ) Q. Have you heard of the concept (24) A. Um-hmm. of aging^ (25) Q. Why would Reynolds have (2) A. Yes. information about the 14 (3) Q. What is aging as it relates to Page 323 cigarette marketing? (4) A. Aging Is - It's people who stay loyal to a brand (5) over time as they age. (6) Q. So that if someone is smoking - if Reynolds (7) attracts a 14 or 15 year old person, which this document (8) seems to indicate at least to me, maybe not to you - (9) A. I do not believe it does. I do not believe that (10) in any - any way. (11) Q. Hypothetically, if Reynolds attracts a 14 or 15 (12) year old market, a 14 or 1 S year old smoker, he's most (13) likely going to be a loyal smoker and he'll buy many Camel (14) ~ cigarettes as he ages, correct? (15) MS. BIXENSTINE: Objection. (16) THE WITNESS: That's not true. You know, again, (17) what I've told you is I believe that the average age people (18) become daily smokers is 18 to 19 years old. That in fact, (19) 40 - nearly 50 percent, 42 percent of 18 to 20 year olds (20) switch brands in two years. (21) That is a key opportuniry for us when - when we (22) developed the Camel campaign and we defined the target as 18 (23) to 24 adult smokers, it was because we felt we had a real (24) opportunity to cause switching among the 18 to 24 adult (25) segment. Page 322 (1) MR. JANACEK: Q. Isn't there a second component (2) to aging? (3) A. I don't know what you're talking about. (4) Q. Isn't a second component of aging that younger (5) smokers smoke fewer cigarettes than older smokers on a daily (6) basis? (7) A. I don't know. I wouldn't call that aging. It is (8) true that consumption goes up as you age. (9) Q. Will you turn to the second page of this document. (10) A. I'd just like to take a minute and look over the (11) document. (12) Q. Sure. Feel free. (13) A. Because I have not read it before. And I'd like (14) to see what it says. (15) Q. Feel free. (16) MR. L'ORANGE: Off the record. (17) (Discussions off the record.) (18)• THE WITNESS: All right. (19) MR. JANACEK: Q. Look at page 2. (20) A. Um-hmm. (21) Q. You saw the first paragraph where the document's (22) discussing Philip Morris's share of the 14 to 28 - 14 to 24 (23) year old age category? (1) to 24 year age category - age category of Philip Morris?. (2) A. I don't know. (3) Q. You can't think of any legitifiate reason why you (4) would want to know how many under - (5) A. I can't say that. You asked me why did Reynolds (6) have it. And I don't know. ' . (7) Q. Can you think of any reason why they would have it? (8) A. I.told you before that in - I can't speculate on (9) all the reasons, but one reason that Reynolds might have (10) tracked shares among underage age groups was to predict (i t) smoking In the future and the building of plants that would (12) need to suffice for capacity for the next 10 to 20 years. (13) Q. And that would be true of a competitor's underage (14) market share as well as Reynolds' underage market share? (ls) A. I suppose if you got Reynolds you got the (16) competitors. I don't know. (17) Q. So it just might be a by-product of collecting (18) your own? (19) A. Could be. Could be. I don't really know. (20) Q. Now, did you see further down the page, where on (21) the left-hand side it says chart 6? (22) A. Yes. (23) Q. Do you see where it says that? (24) A. Um-hmm. (25) Q. That paragraph? Page 324 (1) A. Yes. (2) Q. And do you see where Reynolds - whoever was (3) making this presentation, was reporting on the market share (4) of Winston in the 14 to 24 year old category? (5) A. Um-hmm. (6) Q. And Salem? (7) A. Um-hmm. (8) Q. And Kool? (9) A. Um•hmm. (10) Q. And again, other than potentially using that (11) information to determine what a - what size or capacity a (12) manufacturing plant should have, you can't think of any (13) other reason why you'd want to know that information? (14) A. I don't know. (iS) Q. Can you think of why the marketing department (16) would know - want to know that information? (17) A. No. Again, maybe they were S!29/97 X.,.,x s° just characterizing t 18; the market. It looks like they're just describing the (19) market. (20) Q. Is marketing - people involved in marketing (21) aren't involved in design of plants, are they? (22) MS. BIXENSTINE: Objection. (23) THE WITNESS: We're not involved in the design of (24) plants, no. I haven't been. (25) MR. JANACEK: Q. How do you measure - we Page 325 (1) Talked - strike that. (2) We talked a little bit earlier.bout determining (3) if the advertising is effective in its key prospect, I think (4) was your term. Key prospect segment area? Do I have that (S) right? (6) A. Prime prospect. (7) Q. Prime prospect. Is recall . another way that you (8) measure the effectiveness of advertising? (9) A. It's - we measure - we take recall measures. (10) It's not a - it's a measure of whether It was noticed and (11) remembered. (12) Q. And why do you want to know if it was noticed and (13) remembered? (14) A. Well, if people can't recall it, then they (1S) probably don't remember the information you provided, and U(t6) they don't remember the information you provided, then you (17) probably don't have a great chance of getting them to (18) switch. (19) Q. You haven't communicated it so they're not going (20) to - (21) A. Well, you've communicated It, they don't remember (22) It, so it's - (23) Q. You haven't communicated it effectively? (24) A. Something was lacking. I don't know. (25) Q. Can you turn to - Page 326 (1) A. It could be you communicated it and they didn't (2) care and therefore they didn't remember lt. There can be (3) many reasons for low recall. (4) Q. Can you turn to - and this one doesn't have a(S) number on the bottom, but that right-hand side number again, (6) and if you look at the last three numbers, 299. Do you see (7) the numbers I'm take talking about? (8) A. Oh, this 297 and 298? (9) Q. Right. (10) A. 299. (11) Q. It's talking about research, and I understand you (12) weren't there and you don't know what research it's ' talking (13) about. That having been said, it's - this talks about (14) greater Tooker & Antz Page 321 to Page 326 (41S) 392-06S0 5 i~i~ a~3oa 4
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296:18. 19: J00:1 choices (1) 178:6 choose (91 109:12: 120:3. l: 182:1 S; 205:1 S; 209:7; 221: 9; 222:3 chose (1) 183:7 chosen (2) 96:4: 209:10 Chris (1) 6:10 cigarette (43) 48:11, 12, 21; 52:13: 57:14; 65:1; 71:6, 10,• 73:2; 78:12; 91:24; 92:2, 7, 8, 9•13;93:1;94:19:96:6: 103:4; 182:11; 183:11, 18: 184:13; 196:11; 203:8; 209:21; 231:22: 234:2; 252:3; 263:24; 269:13; 276:5; 291:20, 21; 320:1 S, 20. 22; 321:3; 332:1, 7; 333:21; 337:11 cigarettes (90)10:4.• 53.9. 14; S4.•3, 6, 22; 56.•9, 11: S7.•4, 8, 11: 62:14, 21; 63:10. 13, 13, 21,25;64:1,6,8,11,18,• 65:11, 22; 95:12; 99:8: 100:17; 101:20, 21: 103:15; 110:18; 112:1; 122:22, 2S: 123:9, 16; 124: 6. 9; 125:1 S: 126:21; 129:11; 160:23: 175:6; 177:3; 186:19; 196:2. 5. 9, 14, 15. 18; 198:2, 22, 25; 213:17: 219:25; 220:6• 15: 221:3: 222:6; 234:7, 23: 256:17; 257:22; 285:1. 14, 22; 286:8, 9; 289:15; 291:11: 29325; 294:7, 8; 297:3, 10; 299:15; 321:14; 322:5; 327:13. 22: 328:10, 17. 19; 329:20: 330:8; 339:24: 340:10 circulation (1) 131:11 circumference (2) 333:21; 337:11 cited (1) 179:1 cites (I) 193:22 cities (1) 330:14 City (I) 6:S city (2) 330:14, 17 Civi) (1) 6:23 claim (2)127.•19; 243:2 clarify (5) 12:15; 19:8: 56:12, 13; 130:15 classes (2) 68:5: 94:12 classic (1) 214:14 Claude (2) 275:2; 318:4 clear (8) 54:13; 167.•S: 184:19; 285:25; 314:14, 19: 318:7 Clever (3) 217:9; 309:17, 18 clever (7) 216:6: 281:10; 282:18; 297:16; 298:16; 302:10: 309:11 cl)ent (1) 315:21 Cliff (3) 86:18: 343:25: 344:2 closer (3) 169:21, 25; 260:22 co-counsel [2) 7:3; 28:17 coach (1) 29:3 coaching (2) 20:18; 230:21 coasters (1) 159:10 Code (2) 5:18; 6:23 code (5) 47:23; 48:11, 13• 22; 187:15 collect (1) 1S8:S collecting (1) 323:17 Tooker & Antz college [:) 00:4. 0 columns 111344.15 coming (3) 13:23: 99:7.• 157:8 comment (2) 194:21, 22 comments (2) 195:3, 7 common (2) 190:11; 227:3 Communicate (1) 95:14 cotamunicate (4) 93:5, 11; 94:7,• 108:1 S comatunicated (S) 325:19. 21, 23: 326:1, 2s communicates (1) 96:21 cotamunicatin= (2) 9S:1S; 107.•10 companies (S) 48:1; 103:3; 266:13; 316:21; 317:5 Company 174) S:S: 6:9, 11, 15,19;9:22110:7;13:23; 15:7; 18:23;19:12,17. 25, 20:4:21:16,23;22:1,4.7,8, 23, 25. 23:5, 8. 13.19, 22; 2S:S,11; 28:10,1S; 29:9, 14, 19, 24,• 30:12,14.• 37.•11; 40:4, 7• 41:19, 2S; 42:20,• 53:19; 68:17,• 81:1; 82:9; 83:18; 164:20, 25; 165:16; 195:3; 200:20, 24; 203:23; 204:8, 15; 207:4, 6; 225:7, 10; 233:5; 237:25; 279:2; 291:25; 307:18; 310:11, 24;312:21;313:1;317:10, 16: 329:15, 18 company 153) 22:20; 46:17; 50:4; 54:13, 16; 61:22, 24; 83:20; 87.•24; 132:19. 21: 164:12; 167.•2; 201:4; 225:2, 19; 226:3; 241:8; 247.•3; 2S 1:12. 14: 253.4. ;.73:1: 274:2; 282: 21: 284:14. 23: 285:3. 7. 9,13, 21: 286:1; 302:23; 308:13; 310:13, 16. 21; 311:1, 3. 4: 312:14; 314:4. 13. 21. 25: 315:9; 318:5. 6. 8; 334:16 compare (1) 121:14 compared (1) 339:16 compel(3) 17:9, 18; 18:4 competent (I)149:4 competition (4) 71:8; 168:5: 171:7,• 172:23 competitions (1) 168:21 competitive (45) 71:6: 92:18, 23; 93:6, !S; 94:8; 96:1 S: 99:1, 10; 100:25: 101:3; 111:14; 113:3; 116:13, iS; 119:15. 18: 121:9; 122:4, 21; 123:4, 6: 124:4, 16. 18,^125:9, 20: 128:12; 1 S7.•11: 174: 6: 175:16, 18, 20,• 177:21; 178:11; 180:5; 212:18: 213:6; 252:22; 275:25; 300:12; 302:4, 21; 339:1. 9 competitively (2) 231:4, 9 competitor (6) 98:25; 100:20; 114:19: 128:17, 22: 323:13 competitors (11)127:4, 6; 128:1 S; 129:18; 133:2, 10. 12, 14; 162:1; 231:8; 323:16 complaint (8) 38:11, 12. 13; 39:11. 13. 14• 22: 127:14 complaints (1) 39:21 com p lete (:1 11::3: 120:14 completely (s) 58:19: 225:_2;, 303:1: 31 S: 7 comply (s) 7.•13; 194:24; 195:8. 12 component (2) 322:1, 4 Compound (2) 269:15; 273:24,, concentrate (1) 77.•2S concept (10) 42;7; 95:13: 219:20; 250:17, 20,• 237.•20,• 164:14; 321:1; 326:20, 21 concern (2) 71:16; 129:18 concerned (3)129:1; 219:12: 270:15 concert (2)166:13, 14 concerts (1)165:13 concise (1) 21:9 conclude (() 345:21 concluded (3) 247.•21; 283:2: 346:13 concludes 111250.14 conclusion (8)179:8; 195:18, 24; 199:1, 11; 200:2; 248:1; 282:20 conclusions (5)183:3; 224:5; 274:21; 290:5, 20 conducted (1) 303:12 conducting (1) 302:6 confer (1) 26:25 conference (2)134:9; 156:7 confidence (1) 249:21 CONFIDENTIAL (23)134:11; 135:3; 136:3; 137:3; 138:3; 139:3; 140:3; 141:3; 142:3: 143: 3; 144: 3: 145: 3; 146: 3: 147.•3; 148:3; 149:3: 150:3; 151:3; 152:3; 153:3; 154:3; 1 SS:3; 156:3 confidential (I) 134:3 confidentiality (1) 229:23 configuration (1) 276:5 conrtrtt (I) 186:4 confirmed (3)16:13; 17:16: 302:24 Conformance (1) 216:22 conformance (2) 216:20, 25 confused [1) 65:10 conjunction (1) 164:21 consider (7) 95:17. 19. 20. 21: 101:13, 14 Considered (1) 82:8 considered (1) 82:6 Considering (I) 81:21 considering (4) 79:25: 80:7,• 81:20. 22 considers (1) 268:11 , consistent (1) 210:17 consistently (,1) 250:1 constant (1) 170:1 S constantly (1) 74:12 constrained (1) 284:25 Consultant (1) 241:9 consultant (3) 241:8, 9, 10 Consulting (1) 226:2 consulting (9) 225:20; 226:1, 4. 5, 8.10. 233:2. 4, 7 consumer (S) 95:18; 108:21: 109:8; 137:10; 306:10 Consumers (1) 95:23 consumers (8) 71:6; 73:19: (41'5} 392-0650 95:24: 106::3: 11~:?: 218:17: 319::5 consuming (1) 9S:'2 consumption (4( 179:9, lJ: 322:8 contained (3) 70:lS: 273:8, 23 contemplate (1) S8:1S context (2)186:23; 298:20 continue (1)18:2 continued (3) 33:3; 216:9; 259:18 continuing (7) 67.•2S; 68:1, 3: 91:2; 188:9; 270:22; 346:10 Continuity (1)157.•2S continuity (4)158:2, 10: 166:19, 20 contractually (1) 47:24 contribute (1)178:10 contributing (1)177.•8 Control (l)194:18 conversation (1) 230:20 conversations (5) 15:2: 40:21; 194:10; 249:22, 25 convey (3)175:9; 269:13, 17 conv(nced (1) 63:20 Cooper (4) 9:12, 13; 333:3, 4 copy (7) 212:1; 238:5: 266:S: 2 71: 2S; 272.6. 343: 4, 6 copying (1) 318:25 core (5) 217.•1S, 18. 23; 218:8. 11 corner (5) 206:3, 22; 236:16: 266:8 corporate (2) 87:24, 25 correctiy (14) 5:22: 45:20: 98:1 S, 23; 99:3; 125:2: 131:13. 18: 133: 8; 220:1. 11; 236:10; 294:2: 340:8 correlation (1)128:2 cost (9) 44:15: 69:14, 16: 129:16; 133: 20. 21: 162:14: 172:14 costing 121170:6; 172:6 costs 121171:7; 172:23 Counsel (3) 5:24; 20:6; 228:17 counsel (31) 10:21; 11:1; 13:20: 16:5, 8; 17:5, 7. 8. 14. 19, 20, 22; 18:18, 22: 19:10: 25:2; 26:13, 17,• 27:1: 34:23; 40:16, 22; 44:4; 134:5; 228:12: 229:16: 315:17; 316: 7, 11 Counselor (1)188:5 counter 111314:21 countries (1) 179••11 country (5) 49:19; 64:23: 63:1, 8: 340:11 County (3) 5:6, 19; 6:6 couple 110)10:18; 11:22: 39:18. 25; 117:12; 186:1; 188:18; 214:6: 311:14: 332:16 coupon [2) 293:23, 24 coupons (2) 158:5; 293:19 course (8) 42:12; 43:22.~ 124:7, 10: 167:2; 293:22: 300:16; 302:8 Court (3) 5:6. 8: 179:6 court (19) 5:20; 8:20. 25: 9:6: 10:24; 11:10. 23: 12:3. 12: 37:16; 40: l0; 47:11; 133: 3: From choices to court 51714 2135
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S: 172:17. 18: 179:16: 183: 8: 3 29: 8• 11; 8. 25: 72:16. 17•• 8S: 4: 90:1 S: 2 2: 173: S: 191: 9• 12: 193: 23:' 234:17: 97:13; 107:1 S: 122: 3• 6. 12; 195:19: l 96:1. 2, s. 6: 200: 7. 244:14; 1S7•1; 165:19; 176:3; 184:25: 16 2S: 201:1 21 6 IS: 202:8 answered (35)1S:8t 21:17,• ` 185:1; 195: 8; 200:10: 282: 2t , , . ; . 203:16. 25; 248: 8: 258: 9; 23:14; 24:25; 30:17; j9:12; 289:11; 319:24 293:10. 19; 321:17 43:18; 44:11: 48:5, 8, 17, 24; asks (1) 229:7 Aware (2)106:24; 107.•1 SB:S; 59:24; •82:25; 97.•2S; 103: 22; 117.6. 123:10; 124:13, 19; 166:10; 172:18; 173:8: 178:8; 185:3,19; 191:19; 194:13; 235:10: 244.23. 2S7••1; 287.•20; 303:17; 336:19 answers (5) 11:6, 8,10, 11: 47:1 Antz (1) 5:21 anybody (5) 97.•12t 173:24: 268:16; 285:9: 313.9 anymore (1) 246:19 anyway (1) 210:16 anywhere (2) 223:11: 31S:2S apparent (1) 338:16 appeal (9) 189:14; 190:1; 211:3. 11; 266:14, 18; 282:23; 305:4, 16 appealed (1) 189:24 appeals 111274:22 appear (2)196:10,• 327:17 appearance (1) 262:24 appears (1) 202:16 apply (1) 7:10 approach (1) 129:19 approaching (1) 227:17 appropriate (6] 172:3t 184:1 S: 18S:S. 7, 10. 14 approval (1) 44:2 approve (2) 164:17. 18 approved (4) 45:14; 69:16: 75:16: 164:4 approving (1) 45:13 approximate (1) 89:15 approximately (4) 77.•20: 79:19; 224:18; 285:2 April (6] 53:11: 53:17,• 61:10; 86:14: 336:7, 8 arbitrary (1) 192:1 Arch (3) 5:7.• 6:9 Area (1) 5:18 area (11) 230:10; 325.•4; . 327:24; 328:5; 329:21; 330:21, 23. 24; 339:2, 3, 7 areas(4)18:2;63:10,16: 327:14 aren't (11) 105:2: 108:7• 117: 2 0. 21: 132.5. 133:14; 165:13; 168:23; 218:11; 221:1: 324:21 arguing (1) 228:24 argument (2) 127:21: 128:3 Argumentative (3) 24:4; 35:9; 36:23 argumentative (2) 57:20; 61:21 arose (2) 7:8: 8:2 arrangement (1) 233:2 articles (4) 68:5; 182:3, 20; 183:4 articulate (2) 228:18: 229:23 articulated (1) 211:21 Asian (1) 86:1 aspect (1] 109:13 aspects (1) 34:18 assess (1) 230:25 assigaed (13] S1:1S; 32:8: 7S:S. 7; 81:5; 84:1; 169:2, S; 290:18: 334.•11, 18, 22; 335:11 assigas (1) 68:25 assistaat (34) 68:21. 22: 69:20; 70:5, 8. 9; 75:23; 74:6, 7. 8. 24; 75:9,11; 76:j, S; 78:25; 79:1, 2. S, 9, 18, 20,• 83:7: 169:11; 272.16, 273:11, 13, 18: 275:1 S assistants (3) 42:21: 43:1; 169:8 associate (1) 66:11 auociated (81 78:11; 90:5. 6; 109:21; 190:2; 267:14; 278:14; 302:24 Associates (4) 5:17.• 91:10,• 188:16; 271:4 Association (1) 67:10 assume (6) 23:10; 35:4; 86:5; 97•17; 122:9: 177.•10 assumed (2)128:4 assumes (2) 35:22: 300:24 assuming (3) 232:21:279:10; 344:13 assumptions (2) 313:13, 17 assurance 121276.6. 287.•3 attempt (2)174:1. 4. attend (3) 66:8: 67.•18; 70:20 attended 19134.8. 15, 16: 68:8, 14; 160:22; 27.1:7, 17; 274:15 attending (2) 66:17• 160:16 attention (6) 85:11; 126:9: 221:10: 267:17,• 282:19; j44:4 attorney (1) 239:6 attorneys (2) S:13, 14 attract (2) 208:25; 252:7 attracting (1) 251:9 attractive (1) 93:8 attracts (2) 321:7, 11 attribute (1) 72:2 Attributes (1] 116:5 attributes (20) 71:20: 72:18; 73:7,8,13,14•17,20,21; 108:19; 116:8, 9, 22; 117:18, 20; 118:4, 16,wt 19:2: 120:23 AugostSeptember (1) 163:24 Authentic (1) 217:5 authentic (4) 21 S:S; 220:13; 280:15: 281:11 authenticity (7) 214:8, 9, 14, 17, 23, 24; 220:20 author (2) 262:2: 280:5 authored (1) 33:9 authorization (1) 8:9 authorized (1) 20:15 available (5) 108:19; 109:7•• 110:22;312:7,8 average (34)104:8• 9. 17. 19, aware (50) 26:2; 30:IS, 24; 31:1,4,S,7,12,18;36:19; 80:23; 82:5, 12, 13, 15, 83:1. S: 86:2; 100:22, 24; 102:2t Tooker & Antz =05:17: ::8:=: :30: 9: :31:1:. 241:11: 243:18:259:14:260:31; 265:25: 270:22: 271:2 • 6: 272:11; 276:9; 283:16: 289:17; 309:20; 310:9; 311:5; 318:9; 328:13; 330:25; 332:19; 342:2; 345:21; 346:10 Beast (2) 342:20, 22 Beck (6) 80:2, 4; 281:13, 17. 19; 282:10 106:23, 24; 108:6. 7. 9; 191:12; 193:10, 12. 22; 194:1, becomes (1)103:11 becoming (1) 79.6 17: 195:17. 18; 199:1, 19; 200:24; 274:21: 275:1. 3: 277.•22; 279:19; beef(1)101:7 beer (1) 220:7 beforehand (1) 210:22 280:8; 282:20; 304:2. 22; 305:1; 306:17 begins 111195.19 begun (3) S6:2S: S7.•1: 163:20 awareness (S) 82:23; 107.•3, 6,7,17 Behalf (1) 5:4 behalf (13) 5:14; 6:1, 3, 6, 9, awkward (1) 288:21 10,13,15,18:7:4.6,12: 62:16 -B- behavior (3)194:18: 195:18: 2S0:1S B-E-S-A•L1ErY (1) 9:2 behind (3) 95:13; 213:20; bachelor (1) 66:13 338:25 backed (1) 160:2 be(ieve (123)17.•14: 25:20; background (3) 6S:2S; 70:14: 30:2: 32:2; 33:2j: 38:17 • 294:18 • 42:17 23;S4:1S;SS:4 6 8 backing (1) 160:5 , , • • 10; 61:25; 62:22: 66:1 S: 69:8; Bacon (1) 239:10 74:6; 76:20; 78:5 16 18: 79:3; badge (5) 219:21; 220:4, 9. , , 83:25; 84:4 • 8S:2S; 86:8; 14; 260:7 . . 87.•20; 88:7 18; 89:11: 90:9: 9 171:21 badger 12159.20 , . . b d i 60 2 172 S 91:11: 100:13, 24; 102: 2S; ger a : : : ng (2) 104:19 BALLINGER (2) 6:12; 345:24 . 20; 106:9 12: 110:13: 11 Ballinger (3) 6:12: 134:8; , . 114:4: 116:20; 126:6; 161:7: 156:6 ll k 13 2 164:24; 165:7; 176:21: 177:7: ba par (1) : 183:6: 191:14: 194:3: 196:1; bans 121179:7 12 , B 21 5 198:24 ; 199:16: 200:2 • 13, 15 : anta (1) : b 159 6 10 22 8 201:6; 202:12; 213:23; 216:25; ar (5) : , , ; . 24 165 224:4; 225:5; 236:14: 240:5• 7, : 17 • 91 b 5 9 11. 13:241:7, 8.23; 244:5: agelata (4) • Bar : : : 247:2 10; 248:7; 188:16: 271:4 , 240 17 d 15 B 249:7, 17; 251:25; 260:10: aroo y (2) : , 2 264:4; 265:2; 267:4: 271:11: Barta (1) 5: 1 272:11; 274:13; 275:12; 276:6; base (1) 123:17 283:22;284:25;289:14; based (17) 52:3; 162:12; 292:20. 24; 294:20; 296:5; 189:3, S: 190:3; 226:21: 25: 304:12; 306:14: 303:9 19 231 23; 232:10: 2SS:16 20 , , , . . 282 21 5 62 23 307:3: 310:13. 16, 21: 311:2, : 22; 261:2 ; 2 : : ; 4: 313:4 11; 314:24: 318:2: 291:18; 292:1; 339:22 , 17: 333:2: 334:15; 321:9 basic (2) 227:10; 269:17 . 335:22; basically (4) 10:10: 174:1: 336:22; 338:25: 339:8; 342:13: 213:15; 242:4 344:3 bas is (16)13: S: 64: 8: 6S: S: bell (3) 191:6; 194:19; 336:13 128:7,• 160:10: 172:17; 181:12, , bells 111239:10 14; 189: 8: 199:14; 221: 9: belonging (5) 269:22: 270:1 S: 243:3; 317:24; 322:6 297:19; 298:2. 10 bce(11240:20 7 • 3 21 0 Belongs (1) 80:4 , BDI (4)19 ; : 39:10, Besides (6] 15:6; 52:25: 340:2 73.15.17, • 110:1: 11 S:9 bear (1) 328:18 besides (6] 66:23: 104:11; Beasley (59) 5:3; 7:20• 22: 116:20: 120:25: 190:1; 217: 23 3: 13:10; 16:4; 8:24: 9:1 , Bethea (1) 241:4 17.•19; 18:4, 6; 19:14; 21:13; billboard (16) 44:18: 46:3. 10. 37:1 S: 38: 6: 40: 6; 52:11; 19: 47:8: 48:1. 4. 9: 52:4; SS:16• 20: 63:1; 65:24: 91:2, 7• ~ 130:16: 131:13, 15: 132:19, 11;133:17• 172:11;183:11: 20: 133:20 186:1: 188: 9, 14, 18: 192 :11: Billboards (I1156:20 (4 iI) 392-0650 From answered to Billboards 51714 2134
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BasK Svsums Ao0aiion 240:9; :83:17; 289:18; 308:24; 342:3; 345:16 COVER (23] 134:11; 135:3; 136:3; 137:3; 138:3; 139:3; 140:3; 141:3; 142:3; 143:3; 144:3; 145:3; 146:3; 147:3; 148:3; 149:3; 150:3; 151:3; 152:3; 153:3; 154:3; 155:3; 156:3 cover (2] 344:24 coverage (1) 132:23 covered [3] 55:18; 231:2; 242:22 covers [3) 61:11; 62:17; 64:23 Coyne (1) 42:16 create [10] 41:2; 108:13; 163:13t 218:1; 221:5; 297.•19, 21; 298:1; 305:21, 23 created (7) 42:2; 88:7, 13; 161:8;164:19,21;281:10 creating i2) 70:4, 6 creation [4) 32:24; 43:5; 44:5; 304:22 Creative (1) 42:17 Creighton (1) 169:7 Crest (1) 96:16 criteria (2) 93:23; 160:12 criticism [2) 210:12, 14 cross-not(ce (1) 8:6 cross-not(ced [2] 7••1, 9 cross-noticing (1) 8:10 crystal i3) 314:14, 19 cultural (3] 212:17; 213:6; 216:1 culture (1) 214:7 Cup (4) 158:20, 24; 159:5, 22 Current (3] 99:25; 100:3; 233:2 current (36) 67:13; 68:4; 71:7,• 80:6; 88:21; 90:19; 92:21; 96:24; 97:14; 98:5, 7, 8, 2S; 103:7,• 119:16; 121:12;128:13; 168:19, 23; 174.•S; 175:15, 21; 176:14, 18; 184:21, 23; 215:2; 227.•20,• 228:7; 232:24,• 233:7; 299:17; 301:16; 302:5; 305:2 Currently [1) 334:6 currently (11] 46:13; 50:21; 96:14; 103:8; 113:4; 118:8; 168:19; 169:5; 209:9; 226:8; 232:2 Curry (2) 240:21, 22 customer [1] 103:18 customers (1) 64:5 Cut[1]60:3 cut (3) 20:9; 225:22; 318:23 CV (S1 77:25; 78:23; 84:5; 271:25; 273:12 Cynthia (1) 42:24 -D- Daily [2] 197:7, 10 daily (40) 57:25; 102:13, 14; 103:16; 104:8, 9, 12, 24; 105:3, 10, 14; 184:18; 185:11; 191:11, 22; 196:3, 11. 14, 15, 16; 197:1, 4, 14, 15, 22; 198:6, 20; 200:7, 16, 17, 18; 201:9; 208:14,• 248:8; 256:16; 257:21; 321:18; 322:5 1lfangini vs R.J. Re~•nolds I damage [ 1] 128:1 - Dan (21240.•15, 16 Dana (1) 6:12 Daniels (t) 261:15 dash [1) 296:11 data [14] 249:11; 290:2; 292:2; 306:23; 307.•1, 2, 18, 17, 21; 308: 7, 8; 328:20; 329:7 database (1] 65:17 date (1415:10; 32:15; 66:11; 7'7.•21; 81:4; 205;25; 206r1, 9; 260:25; 261:1; 276:12,14; 291:18; 315:10 dated (S) 53:10; 55:17; 61:10; 295:6; 301:6 dates (3) 74:11; 77.•25; 79:4 Dave 12143:6, 7 David (2)17.•4; 88:11 Day (1) 6:17 day (171196:19, 20, 21;197.•9, 11; 198:3, 12, 15, 16, 25; 199:2, 12; 314:19; 345:19, 20, 21; 346:13 day-to-day (3) 46:25; 165:3; 202:3 days (1] 20:9 decades (2) 250:16; 251:1 December (1] 303:4 decide (8157••7, 10; 67.•18; 117.•23t 164:17, 198:9; 228:19; 229:12 Decided (1] 57.•1 decided (19] 41:13, 16, 21; 56:24; 57.•3, 14; 99:18; 101:6, 19, 21; 103:19; 104:3; 178:13; 183:19; 184:1; 202:24; 209:7; 299:3; 304:1 decides 111204.15 decision [32] 41:2,10,18: 95:24; 97.•20; 99.15, 20; 100.18; 102:4, 21; 106:5, 6; 179:6, 15; 197•22, 24; 198:1, 3,17r203:11;210:19,25; 211:8; 212:11; 213.9. 233:24, 25; 234:1; 254:23; 299:13t 301:11 decision-making (2) 299:18; 301:9 declarations i4] 38:14; 39:1, 2,21 decline (1) 123:13 declines (1) 265:4 declining (4) 234:8, 24; 264:18; 266:19 decrease (2] 171:11,13 DEEMED (231134:11; 135:3; 136:3; 137.•3; 138:3; 139.3; 140:3; 141:3; 142:3; 143r3; 144:3; 145:3; 146:3: 147.•3; 148:3; 149:3;150:3; 151:3; 152:3; 153:3; 154:3; 155:3: 156:3 Defendants [1) 6:15 defendants (4] 6:18, 21; 7.•4; 8:11 Define 111103:13 define (9) 85:21; 120:14t 173:16; 175:14; 184:4; 196:13; 217.•25; 269:18; 306:3 1 defined (5) 71:25; 299:20, 23; 321:22; 341:8 Lvnn Beaslev - =.'29-9? detining (1) :00:8 definite (1)117.•20 definition (15) 22:14, 15; 101: 4; 105:14120:13; 184: 8; 197:6; 198:11, 20; 201:7,• 211:22; 244:6; 264:12; 267.•25 Degree (1] 67.•7 degree (4) 66:` 1, 13, 15; 194:23 degrees (3) 66:22; 67:6, 7 delivered (1)157.•10 demographic (1] 44:16 demographics (2] 129:18; 172:15 :orccrmict ^. _,w..5ee.63~ designate;l) 133:25 i designated i1'140••6, 16: 41:1; 44:13: 52:11: 53: 7• 55:11 • 15; 60:12, 17, 23; 61:19; 62:2, 13, 22: 172:10, 11 designating (1) 134:3 designation (i] 267:13 designations (t) 54:18 designed [4] 181.•6; 305••15, 18,21 desired (2) 294.•18; 295:15 desk (S)12:24, 25; 13:3, 4 deta(ls (4] 32:5;169:17; 227••23; 304:14 demonstrated (2) 75:1; determLtate (2) 251:4, 6 298:11 Demonstrating (1) 296:16 determinates (1] 222:8 determination (4)13:5; demonstrating (1) 296:8 department (69) 45r9; 46:16; 28:251181:13; 283:1 determine (24] 19:23; 23.•3, 4; 50:7,8,12,24,25;51:8,13, 111:12, 13, 18, 20; 112:5, 11; 23, 88:6; 164:11;190:19, 20, 113:14;114:3;115:17;116:23; 22; 194:23; 223:3t 233:12; 117.•19; 120:8, 24; 122:18; 236.2, 4. 6. 8, 9, 13; 237:11, 127.-20, 22; 232:1; 250:15, 21; J2,14,15,17,18,20,22; 324:11; 330:16 238:11; 240:6, 8, 12, 14, 17, 18;241:1,10,12,13,19; 243:5, 12; 247:21; 262:2, 13, 15. 265:14, 16; 271:21, 22, 24; 272:2; 286:12, 21, 24; 287:1; 3(2:23, 24; 317:8; 324:15; 343:20 depend (3] 49:20, 24; 308.8 depending (3] 63:2; 67.•22; 124:7 depends (2S) 49:17; 64:5; 68:24; 69:3: 73:16; 75:4, 6; 107.•2; 118:21;119:22;120:13; 130:24;131:2;168:3,10; 171:5,6,78;172:22;184:8; 201:7; 280:5; 339:5 depo (S] 11:4; 133:4; 156:4; 333:5; 346:3 deposed [1] 62:23 deposing (1) 172:1 Deposition (1) 40:3 deposition (8415:3,11,13; 6:22, 23: 7.•1, 6, 8, 23: 8:3, 4, 11;9:3,8,11;10:17,22;11:2, 3; 13:17; 14:6,14, 20, 22, 24; 15r3,7,16,23;16:1,6,81 171,6,11,12,15,21;18:1,2, 7,9,11,19;25:14;26:13; 29:4, 6; 31:14; 33:5; 38:7, 22; 39:1, 3, S, 7; 53:12; 70:15; 91:2, 7; 97:8; 115:23, 24; 128:20, 23; 129:9; 133:18; 134:2, 7; 186:3; 188:9, 14; 228:24; 229:7; 231:3; 242:23; 270:22; 271:2; 332:24; 333:1, 3, 6, 13; 346: 10 describe (6] 43:16; 77.-6; 214:21; 218.3, 281:19; 296:6 described (2] 192:11; 217.•21 describes i2] 218:5; 269:8 describing (4] 34:22; 235:22; 257.•18; 324:18 description ($] 232:7r 233:14; 279:9,10,16 design (4)178:5; 203:20; 324:21, 23 Determined (1) 200:4 detertnLted (4) 17:5, 15, 16; 199:25 determines (11118.13 detertnining (3) 114:8; 124:1; 325:2 Develop 111275:22 develop (9) 205:7; 212.4, 243:17; 258:22; 275:23; 276:4, 7; 282:22; 301:25 developed (s) 211:18; 278:21; 279.•6; 281:7; 321:22 Developing (1) 76:13 developing (9) l63:15; 211:19; 212:8,19,• 286:8, 13, 15, 21; 305:24 development ist) 69:9,• 70:22, 25; 71:2, 3, 4; 72:4; 106.•20; 190:8, 22: 205:3; 211:18; 212:5, 6, 13; 236:6, 8, 13; 237:21; 238:11; 240.•6, 8, 12, 14; 241:10, 11, 18; 242:8; 243:5, 9, 11, 15; 245:11; 265:14,16; 275:13, 14, 17, 19, 20; 285:12; 286:21; 287:1, 9; 294:12; 301:3; 302:18; 312:17; 339:11, 12 developmental (3) 212:13; 227••20; 228:7 Diane (1S] 224:4; 225:1, 6; 246:19; 262:10, 151266: 24; 267.•4: 271:6, 13; 274:5; 291:8, 9; 292:3, 5 diatribes (1] 21:10 Dick (2) 246:16, 17 d(ffer (2] 89:3; 177.15 diRerence (9) 12:20; 13:7; 32:20; 74:23; 84:18; 110:20; 215:14; 269: 7; 309:19 differences (1) 241:16 D[Rerentiat(on (11267.19 differently (1) 219:1 d(fficuk (6) 11:16, 23; 198:18; 254:24; 256:23; 258:4 dimensions (2) 71:18; 73:10 direct (13) 63:24; 64:7t 87.13; COVER to dimensions (415) 392-0630 FS m Tooker & Antz
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BSA (14) Q. So- A'Iangini vs R.J. Reynolds Lynn Beasley (15) MR. HOPPER: Excuse me. Speak up, please. (16) THE WITNESS: I don't believe the company said (17) that. (18) MR. JANACEK: Q. So that would surprise you if (19f that - (20) A. No, I didn't say it would surprise me. I said I(21) don't believe the company said that. (22) Q. Okay, well, my question was would you it surprise (23) you to find out that there was a statement by R.J. Reynolds (24) Tobacco Company that it needed to get the 14 to 18 year old (25) market? Page 311 (1) MS. BIXENSTINE: $y the company? (2) THE WITNESS: I told you, I - I don't believe the (3) company would say that. And yes, that would surprise me if (4) the company said it. And I don't believe the company did. (5) MR. JANACEK: Q. Ms. Beasley, I'm going ts hand (6) you adocument- which I'll - has been previously marked as (7) Plaintiffs Exhibit 12. Did I already hand that to you? (8) A. Yes. This (Indicating)? (9) Q. Yes. Take a look at that and see if you've seen (10) that before. (11) A. I've either seen this one or one similar. The FTC (12) thing. (13) Q. Prior to the FTC thing that we've discussed a (14) couple times now? (15) A. (Witness shakes head.) (16) Q. You'd never seen that before? (17) A. No. (18) Q. Turn to page 14. If you want to look at item 2, (19) that's where I'm at. (20) A. Yeah, I don't know it this is the one the FTC (21) might have had or not. (22) Q. The FTC might have had a different document? (23) A. Yeah, I think - it was a - R&D. I don't know. (24) Q. Did you read item number 2? (25) A. No. Let me do that. Page 312 (1) I've read it. (2) Q. Does that last sentence surprise you, that (3) evidence - the last two sentences surprise you? (4) A. I'm not sure exactly what this person is trying to (5) say. (6) Q. Well - (7) A. Evidence is now available. You know, they could (8) have been saying that, look - is now available to indicate (9) that the 14 to 18 year old group is an increasing segment of (10) the smoking population. We must soon establish a successful (11) new brand in this market. (12) They could have meant when those people become (13) adult smokers. They could have meant that. But again, this (14) is not the company. I'm certain that a person wrote this, (15) and it was a person's opinion. And I would wonder if this (16) were the final document. (17) This was research and development. It was - it (18) was not marketing. And to my knowledge, we have always had (19) a policy of adult smokers. (20) Q. This is a Reynolds - R.J. Reynolds Tobacco (21) Company document, though, isn't it? (22) A. It's a document prepared by the research (23) department. (24) Q. Do you think the research • department would have (25) had different directions than you did about the market for Page 313 (1) R.J. Reynolds Tobacco Company? (2) A. It's obvious they could have. f3}-- Q.-So-theym ight fiot-hSv"een told that the focus of - (4) A. Oh, yes, I believe they were told. (5) Q. They would have ignored those directives? (6) A. I think there could have been an Individual who (7) wrote this and It was his opinion and who knows. I don't (8) know if this is a final document. It doesn't say who It (9) went to. It doesn't say where it went to. If anybody even (10) saw this. I don't know. You know, thousands of thousands (11) of employees, could an individual employee beAeve this to (12) be true? Could have. I don't know. (13) Q. How many employees work on planning assumptions (14) and forecasts at Reynolds? Thousands? (15) MS. BIXENSTINE: Objection. (16) THE WITNESS: In - (17) MS. BIXENSTINB: What planning assumptions and (18) forecasts? (19) THE WITNESS: You know, obvioualy, all of us in (20) marketing are involved with planning. That's what we do. (21) We plan the - we make the plans for the brands. So - (22) MR. JANACEK:.Q. You write the 10-year plans? (23) A. No. We do not write the 10-year plans. We don't (24) do 10-year plans. (25) Q. How many people - you said that there could be Page 314 (1) lots of employees that would have that opinion. How (2) many people - (3) A. No, I did not say there were 5/29/97 lots of employees (4) that could have that opinion. I would say in a company - (5) this was written in 1976, over 20 years ago. Over a 20-plus (6) period, year period, with thousands and thousands and (7) thousands of employees, could an employee write a document (8) that doesn't say who It was sent to or how it was used or (9) where it was sent? Yes, that's possible. (10) And this could have been never - never been used (11) by someone. It was a document put together and changed (12) later. I don't know. (13) I know that since I have been with, the company, (14)1982 forward, our policy has been crystal clear to me. I(1S) never saw this document. It was never suggested to me by (16) anyone in management, by anyone I work with, that we market (17) to underage smokers or non-smokers for that matter. (18) We market to adult smokers. That policy has-been (19) crystal clear. It's been crystal clear since the day I was (20) hired. And I have never received direction from anyone (21) counter to that. Not anyone in the company. And I(22) certainly did not see - this document was written In 1976. (23) I certainly did not see this document. I don't know who It (24) was written to or who saw it. But I do not believe it (25) reflects company policy. Or Reynolds' intent. It certainly Page 315 (1) does not. (2) MR. JANACEK: Q. You weren't employed by (3) Reynolds - (4) MS. BIXENSTINB: Wait. Can I - before you - I(S) wanted to make sure the witness is done. I'm going to make (6) the same objection today that I made yesterday, Frank, which (7) is that I think that it's completely disingenuous and (8) misleading of you to use this document and suggest that it (9) was company policy when we have produced an identical (10) document that has a later date on it except that it does not (11) have any reference to the 14 to 18 year olds. That was (12) clearly omitted from the final version of the document, and (13) you know that or should know it from our document (14) production. (1S) MR. HOPPER: Ms. Bixenstine, I'm going to be on (16) the record. That's not an objection. That's not a legal (17) objection. That's counsel testifying as follow-up to the (18) witness' testimony. And that's taking up time. (19) And you're the one that wants to i Page 310 to Page 315 (415) 392-0650 ` Tooker & Antz 5i-44 ataGA
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:JO.Y. (7V.1V, :21:10: 242:15, 17; 277:8, 9; 301:1 directed (8) 173:10: 181:9; 214:7,• 285:12: 301:j, 24: 302:J7 directing (1) 221:22 direction (7) 51:14; 70:25; 132:5, 8: 302:16. 21; 314:20 directions (1) 312:25 directive (1) 244:9 directives (1) 313:5 director (t0) 43:9; 84:24; 85:2, 3; 86:5, 13; 87••14, 15: 88:8; 239:1 dis (1) 200:13 disagree (9) 8:1; 248:1, 17.• 150:3, 4, 8; 268:2; 283:1, 3 disagreed (3) 250:1. 7• 28S:S disagreement (1) 8:12 disagrees Il) 285:4 disbanded (2150.12. 2S disbelieve (1) 289:14 discounts (1)157:10 discovery (1)128:7 discuss (2) 15:16: 129:22 discussed (8) 29:23; 30:13: 121:1; 273:7,• 299:6; 311:13; 340:20; 343:23 discusses (1) 257••1S discussing (18) 29:18: 33:14, !S; 34:8, 15, 17, 20; 36:18; 38:4: 209:12: 21 S:1 S: 245:22; 261:6; 273:21; 287••23; 322:22; 329:18, 19 Discussion (1) 310:6 discussion (5) 16:10, 19; 17:3; 136:15: 28S:S Discussions (1) 322:17 discussions (3) 288:4: 304:23; 319:25 Disease (1) 194:18 disease (4) 192:24; 193:1, 9 disingenuous (1) 315:7 displacing (1) 299:25 display (1) 159:10 dispute (2) 9:17,• 160:13 distinction (3) 81:14; 219:4, 16 distribution (4)110:7, 12, 23, 25 District (2) S:8 divided (2) 65:14; 169:9 division (3) 88:6: 236:2, 11 D11 (2) 190:9, 11 document (158)19:16, 23, 24; 22:22, 24, 25; 23:6, 9; 25:10, 14: 27:8; 32:2, 6. 9; 33:9, 18. 22: 36:4, 18; 37:1, 2. 4, 16. 20; 39:22, 24, 25; 40:2: 80:17; 190:1 S; 201:10, 11; 205:17,• 206:19, 22: 208:2, 10; 209:11; 222:24; 223:1. 7, 16, 19. 24; 235:16; 243:18; 246:14; 247:6, 24; 248:15, 18; 250:14. 18, 24: 253:25; 260:21. 22, 24; 261:13, 16, 25; 262:1, 9, 11. 16, 24; 263:16: 265:8; 273:23; 276:9, 11: 277:1; 278:1; :83:16, 22; 284:4, 21; 285:11. 20; 286:1, 6; 287:8, 13, 16, 19; Tooker & Antz .~OO.J. -07.1I, 20; 290:4. 21; 291:8. 9. 10: 292:5. 7; 299:10: 301:5; 309:21; 311:6, 22; 312:16. 21, 22: 313:8: 314:7, 11, 15. 22, 23; 315:8, 10, 12, 13: 316:3, 4, 6,22,25:317:1,3,5; 318:3,4, 9, 11, 16; 319:1, 4, 6, 9, 21, 22, 23; 320:5; 321:7; 322:9, 11, 21; 330:25; 331:2; 332:19, 21, 23; 333:10, 18; 337:17; 338:14; 340:12. 19; 342;2, 6; 343:2, 16 documents (11S)1S:2S; 16:3, 5,7,17.•17•1,S,10,20,•18:6, 9,14,17,18,21,22,23.25: 19:9. 10; 20:2; 21:14. 15. 22: 22:3, 6, 16, 19; 23:11. 12,13, 21. 24: 24:11,14, 23, 24; 25:4, 6,18,19,21,23;26:1,6,12, 16.19. 23, 24; 27.5, 6, 16; 28:5. 17, 20, 24; 29:Z, 5, 8. 12; 30:13; 31:3, 13, 18, 20, 23,24,25;33:14;34:1,5,7, 11, 14, 17, 20; 35:16. 20, 25: 36:8, 9. 14. 17; 37:6. 25; 38:2, $, 21; 39:20: 56:17; 186:2, 22: 201:2. 18. 19, 23; 202:5, 11; 216:18; 261:17; 263:1; 275:6; 282:21; 283:5; 286:18; 288:5, 16; 292:8, 9; 302:19; 316:21 Doesn't (4) 72:10; 160:1; 191:6; 193:4 doesn't (47) 20:22; 57•6, 9: 59:1; 60:1; 63:20,• 64:1,14: 83:19: 91: 20: 97,•13; J 06:10; 131:4: 168:19; 188:V; 191:5: 192: 21. 22, 25; 194:19: 200:19; 223:10; 228: 2. 10. 21; 229: 20, 22: 237:•13: 248: 8: 254:4; 273:6; 279:16; 286:23: 297:2: 313:8, 9; 314:8; 319:4; 326:4; 328:11, 15, 21, 22; 331:22: 336:12; 339:21;340:15 dog (1) 43:13 dollar (1) 161:18 dollars (4) 122:22; 170:21, 22; 339:7 domestic (5) 81:20; 82:7, 8; 83:20; 332:7 Doral (3) 78:5, 6; 83:24 doubt (2) 200:17,• 342:17 doubtful (2) 224:15, 16 draft (6) 316:3, 5, 22, 25, 317.•19.22 - dratied (2)162:20; 164:14 drafting (2)164:7, 8 drafts (1) 164:3 dramatically (1) 170:17 draw (3) 81:14: 126:8: 183:3 Drawing (I) 270:8 draws [1] 219:16 drink (4) 99:14, 16, 17,18 driving (2) 132:9: 260:16 drugs (1) 13:10 druthers (1) 101:19 DTS 11)186:12 duplicated (1) 131:11 duration (1) 133:6 Y{l[1C5. t:11 OY:LJ: /V:/ /; 74:19. 21; 75:10: 76: 4. 7. 22: 77••3, 6. 8: 78: 8. 11: 84:12. 1 S; 85:6; 88:24. 25; 89:3; 90:4; 202:3 dying 12)127••8, 10 dynamics (2) 234:3, S -E- E-T 7-E-L (1) 334:1 earliest (2) 82:5, 13 Early (1) 272:5 early (6) 79:21; 193:14; 195:19: 292: 9; 309: 9; 334:10 easier (2)12:3; 268:22 easily (1J 132:12 Eastern (1) 345:20 eat(1)101:6 eating 121101:2, 3 education (6) 6S:2S: 66:25; 67.•4, 25; 68:1, 3 effect (20)11:18: 52:12, 18; 98:4: 101:17,• 177••8, 19, 20, 24; 178:2; 179:7. 12: 180:1 S; 211:11. 17; 212:12, I S: 287:9; 299:4 effective (17)100:23; 101:10. 16: 114.9. 18; 118: I 3: 119,• 9; 120:25; 121:25; 122:7. 10, 18, 19: 124:2; 205:7,• 294:19: 325:3 effectively (2) 323:23: 326:25 effectiveoess (5)113:22: 115:17,• 125:22: 179:18; 325:8 effects (8) 71:24; 72:5, 11, 19: 73:1; 180:23; 181:5; 288:20 efficient 14) 161:2, 4,• 171:20; 172:5 efTiciently (2) 160:11: 161:1 efforts (2) 257,•8; 294:24 Ehratan (1) 6:12 eight (1)171:24 elementary (3) 49:10, 14: J30:18 Elicit (1) 306:8 elicit (2) 305:15: 306:12 eliminate (1) 211:10 Elizabeth (1) 6:5 Ellen 111240:7 Emily (6) 333:23, 2S; 338:8. 10.11 emotional (6J 305:16, 22: 306:3, 4. 8, 9 emphasis (2) 87:5: 338:1 employed (4) 28:9: 225:9; 315:2; 317:15 employee (8) 225:2. 7,• 271:7, 10: 303: 20: 307:18; 313:11: 314:7 employees (13) 15:14; 42:8; 86: 6, 9; 201: 4, 5: 202:11, 15. 313:11,13:314:1,3,7 employment (2) 329:15. 17 encourage (5) 180:2: 183:12, 19, 22; 185:1 S end (5) 91:1: 188:8; 270:21: 278:6: 346:9 ended (1) 167:19 endlessly (1) 251:9 engender (1) 72:10 (413Z.392-0650 enjoy (=) 7J:6: =88:.3 enjoyment (:) ?14::5: 217.9 enjoys (1) 280:16 ensued [1) 230:20 ensuing (1) 332:6 ensure (2)116:10; 304:20 enter (2)100:19; 263:24 entered (4) 7:14. 15, 16: 102:4 entering (2)102:10,• 267••2 entertained (1) 302:10 entertaining (5) 216:6. 8; 281:11; 282:19; 297.•16 entitled 12)12:20,• 259:15 entity (1)132:20 entry (1) 68:24 equals (1) 267.•2S era [2) 216:16: 260:22 Ernie (1) 240:5 escaping (1) 306:20 Escher (3) 7••3; 14:8; 53:11 essence (1) 7'7,•9 establish (2) 310:11; 312:10 established (1) 26:12 estimate (12) 12:20, 21; 13:1, 8: 69:12, 14, 15; 172:16: 201: 20; 225:12, 13: 268:17 estimates (6) 69:7. 10, 11: 162:14; 171:9: 172:24 estimating (2) 328:9, 16 Esty 131207.3. 6 et (6) S:S, 7,• 49:13; 68:5: 164:23 Etzel (4) 333:25: 334:1; 338:10, 11 eval [1) 160:19 evaluate (1) 160:10 evaluated (1) 160:25 evaluating (1) 160:20 Event [I)157.•2S event (17)158:10, 12, 18: 159:12, 16: 160:13; 165:13: 166:8: 168:25; 169:2. S, 12. 16, 18, 22; 170:2; 171:10 Events (2) 29:JS; 30:8 events (36) 29:9, 10. 13; 30:2. 6. 8, 15, 19: 35:6. 21. 23: 36:18; 158:15, 21, 22. 2S; 159:1,18:160:1,7,10,12,21, 25; 161:4, 5; 165:8, 9; 166:8; 168: 9, 12. 15. 18. 23; 170: S eventually (1) 213:25 Everybody (1) 268:22 everybody (1) 302:9 Everyday (1) 214:3 everyday (I) 214:1 Evidence (1) 312:7 evidence (3) 179:8; 300:24; 312:3 evolution (1) 33:4 evolve (4) 213:7,• 215:19, 21, 23 evolved 12) 212:20; 213:25 evolves (2) 213:4; 214:19 exact (13143:9; 66:10; 72:2; 79:3: 115:18; 206: 9; 223: 6, 8: 235:16; 290:4. 21; 304:17, 20 Exactly (1) 229:18 exactly (23) 66:20; 81:3; 163: 23: 169:14; 205:2: 207:17: 213:24: 216:18; 217:9; 223:10, From directed to exactly 51714 2136
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function (s) 50:9: 87:2: 241:13. 19 FunctionaUy (I) 241:14 functlonalJv (1) 7S.•.9 functions (t) 286:25 ' fundamental (1] 234:9 fundamentally (11122.23 funny (1) 309:16 future (3) 234:7• 250:21; 323:11 -G G.G. (1) 241:4 G.H. (2) 236:18; 237.•23 gain (1] 2SS:6 gained (1) 252:6 gaining (t)116:14 gains (3) 251:21; 253:6; 254:17 Gallop (2) I78:2S gathering (1] 195:2 gauge (1) 346.•4 gave (7) 22:14: 44:3: 165:7,• 170.•2S; 190:6; 218:9; 302:16 geared (2) 100:18; 102:9 gears (1) 20:14 Gee (I) 241:5 Gemma (1) 240:13 Generalfze (1) 226:16 g e-ne r a lia e-{,-) -226:1 S generate (15) 92:18, 23; 93:1 S; 94: 8: 96:1 S. 24; 123:4, 6; 124:4, 11; 125:9. 20; 300:12; 302:21; 339:1 generated (5) 19:24; 261:3; 262:8; 272:18; 306:14 generates (2) 93:6; 124:15 generating (1) 111:14 genetic (1) S7•18 Genuine (t) 217:5 genuine (3) 214.•13; 280:15: 281:11 geographic (I) 65:12 geography (3) 130:25; 327: 21 • 22 George (2) 240:15, 17 Gerry (3) 236:19: 237.•23: 238:21 Gesturing (1) 239:7 gets (1) 228:21 give (321 12:13: 13:1, 6; 20:22: 32:5; 48:3. 12, 13, 23; 49: 4. 6; 65:16: 9S: 9: 112: 2: 117: 2S; 118: 23: 119: 2S; 127:21. 22; 130:22; 131:4; 158:19; 164:1 S; 171:3; 172:16; 173:2: 201:20: 225:12; •253:9; 259:24; 268:17,• 330:3 given (18) 48:9: 67:10; 132:1, 2; 133: 2: 170: 2 2; 171:16: 176: 21: 189:10; 217:10: 274: S, 8. 14; 294:3; 302:22; 304:15, 16 gives (5) 7S:S; 120:6; 128:7• 198:21; 330:7 giving (2) 114:13: I1S:19 goal (25) 92:7, 9. 17,• 93:4: 98:23; 99:1: 107:4, 5, 6, 8, 18; 108:13; 122:7. 9; 125:6, 8, 14. 19; 126: 8: 298:1. 13, I S: 332:3. S. 6 goals (13) 77:16: 92:6, 12. 16. 2S; 94.•4, 23; 95:2: 101:18; 106.•12; 125:1: 126:16 God (t] 270:10 goes (3) 251:3; 256:13; 276:23; 320:18: 322:8 Goodness (1) 262:25 Gosh (12)191:4; 225:11. 14; 238:4; 262:20; 263:10: 270:10; 277.•1; 290r8; 307.•2.f; 317:11; 334:8 gosh (8) 4S:S: 189:4• 197.•20: 214:12; 242:19; 246:23; 272:4; 305:12 govern (1) 7:16 governed (1)133:14 govetitment (e)196:18; 201:5: 202:12, 16, 209:15; 249:1, 14; 292:1 graduated (1) 66:3 graduation (1) 66:10 granted (1)18:4 Great (11272:10 great (2) 240:4; 325:17 greater (1) 326:14 greatest (1) 256:13 greatly j3] 172:21: 173.9 Greg j2) 240r1S, 17 Griffis (3) 342:8, 10 gross (1) 131:10 ground (2)11:21; 17.•17 grounds (6) 8:9; 16.•6; 20:13, 22; 27.•2S; 231:10 Group (2) 42:17,• 217.•14 group (64143:9; 82:16; 87:ZS.• 88:6; 110:3; 112:21: 113:11; 173:19; 174:9, 10, 2 f, 24,• 176:JS; 183:21, 23t 189a1; 190:6; 193:8; 217.•14: 2$3:16; 235:22, 25: 236:2. 3, 11; 244:10; 245:14; 246:3; 252:1; 273: 20. 21: 274: 2, 8, 9. 16; 275:13, 14. 17. 18. 20; 278:14; 285:2; 287:4; 289:5; 290:16; 303:14, 16; 309:16; 312:9; 319:7; 320:12, 16, 21, 23, 24; 331:11, 20. 24; 338:1; 344:17; 345:1, 14 grouped (21 189:8; 190:5 groups (35) 70:20• 80:18. 21; 81:7, 11; 82:2; 83:6, 9; 112:22; 113:1,2,12,19;174:1,4,19; 189:10: 217.•17,• 227.•11, 24: 243:16: 245:17, 18, 19. 25 - 289:9: 300:10: d02:2. 3. 6, 8, 16: 303:12; .f23:10; $44:21 grow (10)123:7, 12. 13; 124:4, 21, 23; 125: 23; 177.•7.• 251:9; 282:22 growing (3) 234:8. 24; 320:14 Growth 1112S9:1S growth (5) 254:9, 13, 1S; 266:1 S: 332: 7 GRP (7) 131:8, 9, 14, 19, 20, 23: 132:18 guess (29) 12:21: 13:6, 8; 33:17,• 50:12; 57:17,• 59:17,• 60:6. 25: 101:10; 104:16; 125:2: 133.•2S: 187:4; 190:16; /93: 3. 6; 206:11: 215:13: 228:11: 244: 4: :48: 23: 261: 24: 271 •2S: 277:24; 297:8: 307.•16; 3j8:7 guessing (3) 279r1S. 16; 328:6 guidance (11131:4 guideline (I)130:16 guidelines (14] 48:2, 3. 4. 9, 20, 23; 49.•6: 130:1 S, 22: 132:1, 2. 4, 18; 294:12 Guy (1) 317.•8 guy (5] 240:23; 284:19. 20,• 285:4; 287:6 guys (4)122:17,• 172:10; 309:25 -H- H-A-Y-M-F.S (1) 47.•13 H.J. [1) 238:1 H.T. (2) 336:25; 337.•2 habits (l I 291:1 S hadn't (12] 30:20; 38:4; 58:23: 75:18; 76:9; 85:7,• 101:21; 102:4; 210:1; 253:23; 283:13; 288:,14 ha lf (10) 23: 2S: 24:12: 34:12; 3S:S, 16: 74:14; 2S2:S; 254:21; 292:22; 345:19 Hall 15) 89.12; -238:7; -8,- - - 336:16, 17 hall (3] 228:18; 229:12; 336:17 hammock (t) 214:2 hand (13) 37:15; 205:17• 260:21; 276:9; 283:16: 289:17,• 309:20; 311:S, 7; 318:9; 330:25; 332:19: 342:2 handle (I) 75:1 handwritten (1) 266:9 happening (3) 68:2: 172:21; 234:11 happenings (2) 30:8: 36:19 happens (3)18:5; 162:13; 300:8 harassment (I ) 172:8 hard (1173:25 Harden (1) 241:5 Hardy (1) 239:10 Harry (1) 238:2 harshness (1) 73:12 hasn't (8) 56:9, 25; 57:13, 14: 97:12; 98:24; 100:19; 104:1 haven [1] 181:21 haven't (41] 15:21; 57:10: 58:24; 96:13: 98:13; 99:6. 19; 101: 9. 2 4; 102 :10; 10S : 6. 8, 15. 20; 116:1; 126:14; 180:8: 181:2, 19; 183:8, 19: 184:2. 12; 194:8: 195:22; 202:4; 206:17, 18; 248:24, 23: 252:11, 13, 19: 260:11; 268:12; 270:4; 318:14; 324:24; 325:19. 23; 331:3 Haymes (8).47:6. 11, 13, 14; 50:3, 10. 17.• 164:12 He'll (1) 11:1 he'll (1) 321:13 head (27) 9:20; 12:9: 37:10; 41: 22: 102: 23: 161:16; 195: 23; ~ .36:_s::37a. 10: ~ 238:10: =39:1S. 19: 240:16: 243:1 J: 233.•13: : 58:13: 268: 9: 2 72:17. 289: 4; 302:12: 311:1 S: 318:15; 327.•16; J31:S heading (4) 221:13; 247.•14; 293:2: 331:15 headings (2) 263:8, 11 Health (2)199:19. 21 hear (2)11:23: 99:2 heard (323 31:14; 37.•3; SS:20, 23; 56:2. 4. 6, 14, 16; 192:13, 14, 20; 195:22; 199:3; 248:14; 253:22, 23, 24; 268:16; 275:8; 279:19; 283:4, 13; 284:18; 285:9; 287.•8; 290:5, 6: 319:13, 17.24. 321:1 hearing (5) 98:15, 23: 103:6; 125:2: 261:1 S held (1) 74:13 HcUer 1116:12 help (8) 52:3; 65:4; 206:17; 215:11: 220:2; 264:14; 276:13: 343:23 helped (11194:23 helpful (1) 308:9 heroic (4) 213:18. 21: 216:10, 16 Hi(t)8:24 high (9) 49:10. 14; 6S:2S: 66:16: 130:17,• 284:22: 328:13 higher (6) 77.•16; 254:18: 260:19; 293:10. 19; 339:17 highest (1) 280:16 highly (11128:12 highs (1149:14 highway (11 132:9 hire 11146:24 hired (1) 314:20 Hispanic (6) 85:9. 12, 24: 271:18: 330:3. 6 history (1) 111:7 hmm ( I ) 28: 22 holding (21117:2• 3 home 11) 186:11 honestly (2199:23; 241:22 hope 96:22; 98:4, 11: 124:20 HOPPER (18) 6:8; 130:2; 228:17, 23; 229:3. 6. 10. 18. 22; 230:11: 231:11; 310:1 S: j1S:1S. 21. 24; 316:10, 13, 16 Hopper (1) 6:8 horizontally (1) 327:7 hours (3] 13:1l; 68:5: 345:19 household (1) 97:18 Howard (416:14; 7:4; 272:9; 337:3 huge (9)120:6; 171:23: 2SS:S. 6. 9. 10: 256:12: 257:4: 259:13 humor (1) 204:14 Humorous (1) 309:13 hutnorous (2) 309:6. 14 hundreds (1) 24:16 Husband (1] 14:11 husband (6) 14:12; 15:3, 6: 59:17,• 60:7, 10 hypothetical (3) 102:17.• 170:20; 179:21 Hypothetically (2) 178:13; 321:11 From function to Hypothetically Tooker & Antu (a 1?Z.392-0650 51714 2137
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euK s~tg= Ao,i",pM Aiangini v s R.J. Reynol ds Lynn Beasley - S 39i97 17: '24: 34: 225:11: 241:22; experimenting (12) 56:8, 11; find (161 46:4, S, 7; 48:1; 246: 24: 256:13: 265: 4; 273:12; 104:13: 105:21; 180:11; 63:15: 119:17,• 181:16; 205:14: 299:10: 305:14; 307:10; 312:4 191:13, 17, 21; 192: 231 196: 4, 227:2, 7, 23; 275:25; 302:13; 329:12 9: 201:9 305:3; 310:23; 330:1 S examine (1) 7:20 example [27) 8:14; 12:23; 22:22; 34:8; 45:17; 46:2, 11; 51:17,• 63:21; 65:16; 67:25; 85:14,- 89:2; 96:7; 97,•16; 99:10; 100:25; 156:16; 170:20; 198.•23; 209:18; 233:20,- 261:3, 15, 286:1 S; 330:3; 344:17 examples (3) 85:1 S; 114:14; 158:19 except (6) 16:9, 17; 17:1, 23; 126:2; 315:10 excitement (4] 269:23; 270:17; 308:1 S, 21 exciting [1) 309:6 Excltuively (1) 243:7 exclusively [1) 265:19 Excuse [6] 8:1R• 26:23; 131:15; 188:5; 228:17; 310:15 excuse (7) 21:14; 25:2; 51:3; 283:17; 319:6; 341:20; 342:3 executed [1) 293:3 execution (3) 215:18, 20; 299:3 executions (9) 80:20; 81:10, 12; 213:12; 215:20, 22, 23; 298:7, 21 executive [2) 273:2; 291:11 exercise (1) 21:11 exercising [1] 21:6 Exhibit (23] 37.•17, 18; 40:3, 11, 20, 23; 60:20; 205:18; 221:11; 222:25; 260:23; 263:16,• 264:2; 276:10; 283:18; 289:19t 309:21; 311 r7; 318:10; 331:1; 332:20; 342:4 existed (3) 85:7; 86:7; 211:10 existence [1) 241:21 existing (11185:9 exists (2)184:1, 5 expand (1) 95:1 expect [1] 309:23 expensive (1) 260:19 experience (9) S7.•22; 58:3, 20, 22; 74:25; 181:4; 2SS:16, 22 experienced (1) 94:17 experiences (2) 270:8; 289:6 Experiencing (2) 217••8 Experiential 111217.6 experiential (4) 21S:S; 217••7t 220:13; 298:18 experiment (8] 104:14, 17, 20,- 180:18; 191:10; 248:10; 249:13; 291:20 experimental [4] 104:22; 105: 22; 179: 23; 181:10 exper(mentation [2)196:1 experimenter (4) 58:16; 105:25; 106:2; 179:23 Experimenters (3)104:1 S; 105:24; 181:23 experimenters (t1] 105:22; 106:8, 16; 179:20; 180:7, 9, 18, 21; 181:2; 183:6; 185:12 Experimenting (3) 191:16; 204:19, 20 Explain (1) 109:18 explain (3)12:22; 229:24; 257:17 explained (1) 223:19 explains (t) 250:2 explore [1) 340:20 exploring (1) 80:19 expose (1) 205:5 exposed (S] 56:23; 193:19; 223:20, 23; 288:15 extent (15] 11:7; 16:9,17; 17.•1, 10, 23; 18.4, 19:13, 19; 53:13; SS:18; 61:11; 62:17; 92:2; 226:12 extra (1) 246:9 ey"atching [1] 281:10 -F- face (21132:5, 8 Fackelman (1) 240:5 fact [10)12:19; 20:21t 64:21; 259.•3; 302:24,• 316:3, 10; 317:4, 25, 321:18 facts (2) 26:1; 300:24 fa(r (2) 90:9; 125:18 fairly (1)190:11 fake (11305:13 falls [1] 228.19 fam(Itar (12158:1; 191:5; 219: 20; 241.5. 247••231250:17 20; 254:1; 278:16; 287•14; 290:21; 307:20 familiarize (1) 223:4 faxed (1) 272:7 FDA [11)192r11;193:22; 194:20; 195:4, 18; 274:21, 23, 24; 282:20t 283:2 features 111219:14 Federal (1) S:8 feedback (1)113r6 Feel (2) 322:12,15 feel ('1)17••17; 72:20; 112:17; 113:14; 205:24; 216:19; 279:17 feeling (2) 72:13, 15 feet (5149.10.12, 130:17,19; 131:23 felt (8)10:4; 160:7; 210. 13, 279:11; 281:23; 282:2; j01:18; 321:23 fewer (1) 322:5 FF (1) 188:19 FFLT [2] 188:21 t 337-•2S field (3] 68:2,; 187.•19, 21 Fifth (11342:12 figure (7] 10:1; 59:22; 80:14; 121.24, 198. 11; 229:3; 297••9 file (1u 273a filed (2)10:6; 38:12 files (3) 22:1, 4; 23:18 filled (2) 224:21, 22 final (9] 77.•18; 164:4; 171:7; 312:16; 313:8; 315:12; 316:4, 23,317.5 finalized (1) 161:10 finance (1) 66:13 fine (7] 17:18; 20:19; 28:2; 128:4; 219:3; 230:2, 13 examine to fun 18 foreign (2158:19; 307:20 forever [1] 243:23 forget (1) 43:8 form (20) 11:2: 93:9, 21; 95:3; 107:13; 112:23; 121:19; 163:3; f[n[sh (1)17.•7 finished (1)134:6 Firnt (1) 6:18 175:1, 11; 179:24: 182:12; 196:23; 204:10; 21 S: 9; 234:1 S; 245:4; 263:3; 293:13; 308:4 firm (3) 5:20; 7:4; 239:6 formal (2] 66:25; 67.•3 First (4] 81:221208:3; 256:1 S; format (7] 33:21; 261:23, 25, 267••11 262:14, 17; 263:2, 8 first (66)11:22; 20:1; 36.•l; formatted (2] 261:17, 19 53:3; 68:16; 70:9; 81:19; 97••2; forau (1) 108:16 101:7; 103:10; 106:3; 181:19, forth (11282:16 21; 182:22, 23; 183:2, 7, 201 forward (4) 211:23; 212:7; 193:12, 14, 15, 200:21; 204:9; I 282:17; 314:14 206:18;208:6,9,10,12,13, found (2) 80:16; 179:12 16, 23; 209:1, 2, 3, 12; 221:14; four 151117.15. 225:14; 249:12; 253:3; 256:13; 278:6; 305:13; 338:7 2S7:1S, 18, 20, 24, 25; 258:9, fou'rth [3] 2SS:4, S; 338:6 13; 267:9, 16; 268:5; 287: (4, frame (14) 45:2, 3, 10; 118:8; 22; 288:25; 289:14; 290:25; 201:20; 213:21; 214:10; 256:6, 291:19; 316:24; 318:20; 320:2; 8, 10; 264:20; 297••12; 335:17 322:21; 331:6, 14; 337:6 Fran (3) 156:10; 162:21; 169:7 firsthand (2) 317••21, 24 • fished 111101r24 fit (6)163:2, S; 165:22; 193:6, 7.270.9 fits (1) 222.13 Five (1190:24 five (12] 73:10; 131:2; 224:24; 230:20; 248:12, 18; 251:8; 264:9; 269:8; 291:2; 292:13; 305:13 flve-tninute (1)129:23 flavor (7J 109:1; 187••6, 9; 188:20, 21, 22; 337.•2.f Floor [3) 5:12; 188:15; 271:3 tloor (1) 91:8 fluctuation (2r 17i:17;173:7 fluctuations (1)171:4 fly (1] 172:3 Focus (1) 113:2 focus (34] ,70:20; 80:18, 20; 81:7,11; 82:2,16; 83.•6, 9; 112:21,22;113:1,11,12,19; 174:15, 20;'212:1; 227••11, 24, 243:16; 243:23; 246:3; 289:3, 8; 302:2, 6; 303:12,14,15; 309:15; 313:3; 344.17, 21 focused (1) 2S7••8 focusing (11294.24 follow (4117••25;130:20; 255:18; 297:8 follow-up (1) 315:17 FOLLOWING (23) 134:10; 133:2; 136:2; 137••2;138:2; 139:2; 140:2; 141:2;142:2; 143:2; 144:2; 145:2; 146:2; 147••2t 148:2; 149:2; 150:2; 131:2;152:2;153:2; 154.2, 155:2; 156:2 following (6) 96:19; 102:17, 22t 332:10, Il, 12 force (4) 8:11; 11:18; 64:23; 65:13 forecast (S] 186:1 J,17,19, 20; 242:1 foreca:ting (2) 241:24, 25 forecasts (3) 242:2; 313:14, Franchise (2) 331:17, 23 franchise (7)176:14; 302:4; 320:9; 331:10, 20; 332:13, 14 Francisco (17] 5:6, 12, 23; 6:6; 7:23; 15:4; 91:8; 131:6; 172:4; 188:15; 271:3; 327••1S; 340:5, 9,10; 341:4, 10 Frank (17] 6:1; 20:11; 21:2; 27••20; 53:11; 59:19; 70:13; 84:6; 115:22; 130:11; 157.•1; 171:18; 242: 23; 270:13; 309:22; 315.6, 346:1 free (7] 158:6; 205:24,• 293:22, 23, 25, 322:12, 1 S French (22) 80:20; 81:8, 10, 14, 20, 24; 82:3, 6, 16, 175:23; 293:6; 295:4, 8; 301:2, 22, 24; 302:7; 303:1, 12, 23; 304:3, 5 Friday (1) 8:S Friends (1)14:11 frienda (2) 298:11, 14 fr(endsbip (2] 298:6, 7 front (6) 66:9; 74:11; 78:23; 89:14, 16; 308:7 FSMN [2] 188:23, 24 FTC (43) S6:1S, 16, 20,• 80:16, 24; 193:15, 17; 201:3, 25, 202:6; 223:7, 12, 14, 15, 16, 19; 235:1 S; 247••24,• 275:4, 7, 12; 283:5, 11, 13, 23; 284:1; 287••17, 18, 24; 288:4, 6, 18; 311:11,13,20,22;316:12,13, 20;317.•2;318:16,17 F[JBYAS (9) SS:13; 267.•9, 12, 20, 25, 268:11, 14, 20; 269.7 FuU (3) 188:20, 21, 22 full (9) 8:2St 109:1; 120:31 133:15; 187:4, 6. 8,13; 337:25 full-blown (2) 81:23; 127:21 full-time (1) 259:11 fully 111259.5 Fun (1) 217•6 fun [16] 213:16; 216••6, 8; 220:16; 281:10; 282:18; 297••16; 298:16; 302:11,14; 308:13, 21, 22; 309:6, 11 (415) 392-0630 Tooker & Antz 5r+H 0"A k 3 LnA
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assK s~~fr, AVPI"WM Mangini vs R.J. Re}•nolds marked (131j7.•18; 205.•18: 222:25; 260:23; 276:10; 283:18; 289:18; 309:21; 311:6; 318:10; 331:1; 332:20; 342:4 market (129] 10:4; 27:10; 53:8;54:3,13,21,22;61:2:; 62:6; 63:6, 9, 13; 64:15, 19, 22; 65:2, 21; 77•10; 85:12, 13, 17,19,21,25;86:1;98:11,12; 99:18, 20, 24; 100:5, 14, 18; 101: S, 12; 102:4, 9, 10, 19; 103:5, 7,• 10S:2S;106:5, 18; 114:18; 11S:10; 123:14, 18; 124:1, 4, 8, 10, 21, 23; 125:23, 25; 131:15, 19; 132:23; 161:3; 173:11, 15: 185:6, 7; 186:25; 197:24; 202:23; 204:8; 205:1, 13; 210:6, 10; 211:1, 12; 234:3, 9, 11; 233:1; 237:15; 242:7; 243:5; 251:22, 24; 252:3; 254:23; 256:21; 263:24; 265:13, 14, 15, 16; 271:23; 284:16; 285:1, 21; 286:2; 287;1; 300:11; 310:12, 25; 312:11, 25; 314:16, 18; 318:1, 7; 319:7, 10, 19; 320:12, 15, 16; 321:12; 323:14; 324:3, 18. 19; 327:14; 329:2, S, 10; 330:3, 6; 340:1 marketer (4) 71:17; 96:20; 109:11; 269:14 Marketing (4) 74:24; 241:10; 243:13; 319:16 marketing (140) 9:20,• 10:11, 12; 26:24; 27.•4; 53:14; 54:6; 66:14; 67:1; 68:8, 14, 21, 22; 69:19; 70:3, 7, 9; 73:23; 74:6, 78;75:9,11;76:3,5;79:1; 87:19, 22; 88:3, 5, 10, 13; 89:19; 94:13; 99:24,• 129. 10, 157:3, 20; 158:16, 18; 181:9; 190:10, 19, 22; 204:5, 24; 205:6, 7; 210:12, 17; 224:7; 225:4; 233:12; 236:3, 5, 8, 9, 12, 24; 237:8, 9, 10, 12, 14, 15. 18, 20, 21; 238:4, 11, 16, 19, 23; 239:1, 15, 18, 19, 20, 24, 25; 240:5, 7, 12, 13, 18, 22; 241:2, 11, 13, 18, 24; 243:9, 11, 12; 269:8; 271:12, 21, 24; 272:16, 25; 273:11, 13, 18; 274:3; 284:20; 285:14; 287:7; 290:16, 17, 18; 291:10; 297:3, 10; 303:21; 308:2. 3 ; 312:18; 313 :20; 319:12, 13, 18; 320:3, 6; 321:3; 324:15, 20; 334:2, 3, 11; 336:22; 337:3; 338:25; 339:7;340:15,23 marketplace [8)115:11; 123:13; 126:12; 162:1, 131 171:6; 172:22; 271:19 markets (19] 84:24; 85:2, 3, 10, 15, 22; 86:2, 10, 15, 23; 87:14, 1 S; 88:9, 14, 17; 99:25; 336:9, 15; 343:20 marks (8) 5:2; 91:1, 6; 188:8, 13; 270:21; 271:1; 346.9 Marlboro (23) 53:9, 14; 62:7; 99:5; 103:2; 122:1 S; 177.•2, 11, 24; 189:13, 13; 252:6; 299:25; 3004, 9, 10, 13, 14; 337:14; 339:1 S Marlin (2] 65:3; 277.•22 Mart(n (1) 242:23 Marty (1) 236:22 Marvin (1) 242:23 masculine [6)189:14, 22; 190:2; 216:19; 217.•6; 280:16 Master (11166:18 master (1) 66:15 match (2)167.•23, 24 matches (2)167:20; 168:21 Mateo (s) 5:18,19; 91:10; 188:17; 271:5 material (1) 214:25 materialism [2) 214.6, 8 matter (7)196:15; 223:20, 24; 249:19; 274:1; 291:14; 314:17 matters (4) 5:4; 30:11, 13; 133:18 mature (11331.25 matures (2] 320:21, 24 MBA (4) 66:14, 23; 68:16; 94:15 McCann-Erickson (8) 32:3; 33:10; 34:21; 36:5, 18; 37.•4, 13; 42:16 McKenna (2l 238:20, 21 M1)D 141190:17, 18; 236:7; 243:5 mean (143)12:11; 18:8, 11; 19:2; 21:24; 22r1312S:17; 27.•4; 30:7; 31:2; 34:23; 35:14; 38:10,15;42:4,8;47.•2,5,6; 51:10, 11; 55.24, S7.•9; 64:1, S; 67.•2; 71:3, 11, 21; 72:9, 12, 16,• 77.•15, 18; 78:13; 79:7,• 80:10; 82:11, 18; 85:1; 87.•17; 89:23; 91:14; 92:11; 93:17; 95:6, 19; 97:12; 98:14; 99:4, 18; 100:9, 10, 12; 101:8, 18; 103:2; 105:17; 106:24; 107:20; 117:1; 121:21; 125:1; 127:6; 132:8; 157:9; 158:22; 160:9; 163:5; 164:8; 166:23, 24; 167:12; 169:20, 23, 25; 173:13, 14; 175:3, 13: 176:24; 177:1;182:3; 183:1; 186:5; 193:3; 199:7, 9; 203:1St 208:9; 215:12; 217:7; 218:6, 13; 219:5; 223:14, 22; 225:18; 226:19, 24; 230:3; 233:18; 234:5. 18, 19; 241:25; 245:19; 255:9, 1S; 257:8; 261:19; 262:17; 263:5, 10,14, 18; 271:17;273:19;273:23; 277:21; 282:14; 286:23; 287:21; 288:4; 290:10; 293:15; 294:21; 296:1 S; 297:9, 22; 304:6; 306:4; 308:7; 327:21; 335:7; 339:24; 340:24; 344:8 meaning (4)197:17, 19; 269:6; 296:13 meaningful (3) 93:12, 18; 306:1 meanings (l1186.4 means (24) 21:25; $7.-2; 65:7; 71:5;192:18;199:13; 208:13, 16; 212:8; 220:3, 9; 222:16; 226:20; 251:25; 253:4; 257.•2.5; Lynn Beasley - S/29/97 169:13; 291:19, 20, 25; :94:22; j28:16: 329:11; 340:8 meant (29) 92:19; 96:18; 191:16; 192:2, 6, 8, 9; 195:13; 200: 9; 209:21; 219:2; 256:14, 1S; 260:9; 266:22; 268.•21, 23; 284:9; 292:3; 294:17,• 296:25; 297.1, 7,• 312:12, 13; 329:12, 13; 333:11 measure (16) 73:19; 112:11; 116:22; 117.•21; 119:8, 11; 120:2:122:3, 6, 19; 123:22; 324:25; 32Sr8, 9,10; 326:22 measured (1)117.•2S measures [13)112:7;114:15, 21;115:9,12,13;116:11,12, 25, 123:20, 21, 22; 325.9 measuring (2)119:3; 120:24 meat (2)101:2, 6 Media (1)157.•1S media [48145:9, 12, 13, 14; 46:16; 47:3, 7, 15148:4t 50.4. 7,8,12,20,24;51:7,12,23, ?S; 69:2; 75:20; 156:12, 22, :4;162:25;163:2,6,13,15, 16,18,20,24;164:1,7,8,9, 10,13,14,16,19;199:3; 237.17.240.16, 275:5, 9 meet (1148.2 meeting (5) 224:3,12, 21; 319:18, 25 Meetings 11134.16 meetings (s) 31:9; 34:8,15, 70.•21; 224:16 member (2)187•19, 21 memo [3) 33;19, 21; 206:14 memorize (1] 170:16 memorized (1) 74:12 memory (7) 31:22, 24; 36:8, 9, 20, 25, 38.2 men (4] 33:16; 189.25, 209:17 mental (s)17.•22; 26:14, 17; 28:21 mentioned (2)179:5;196:11 Mercedes (2) 260:13, 16 message (8)17Sr9; 282:12, 14, 15; 326:15, 16, 17, 25 methodologies (1) 62:7 methodology (1)194:9 metro (3) 329r2, 5, 10 metropolitan (6) 63:10,16; 327.•14• 328:5; 329:20; 330.•21 Mezzina (2) 6:16, 19 Mid (1) 261:10 mid (9) 206:11; 207.9,10, 25, 210:9; 237.•1, 4; 276:15, 22 mldJuly (1) 302:2 middle (4)12:2; 209:18; 280:19; 344:11 midst 111210:19 M(ke (2) 240:21 mWtary (2) 85:21, 25 Miller (2) 336:11, 12 mi)limeter (1) 337.•25 mi; : ,)n (3)170r21; 251:8; 26;: .:2 mind (4) 32:20; 81:17; 270:18; 280:24 mindset (S) $8:25; 59:1, S; 278:10; 307.9 Miae (1) 318.23 I :orcot7irct w lAok.Sec.-4~ mine [:1:66: S; 318: ZS minimum [1] 49:9 minor (2] 183:16; 185.•1S Minors (1) 193:5 minors (1) 274:22 m(nute (6) 253.•9; 259:24; 270:10; 310:2; 322:10; 333:8 minutes (2) 90:24; 230:20 miscellaneous (1)157.•18 mischaracterized (1) 36:1 Mischaracterizes (3) 73:3; 297.•4; 319:20 mischaracterizes (2) 285:17; 301:12 mishearing [1) 336:1 misleading 121125:17; 313:8 Miss (1)132:2.f missed (1) 78:19 miuing 111126.3 misstate (1) 255:23 misstated (1) 255:24 Misstates [5) 30:21; 107.•23; 108:2t 114:11; 250:23 m(sstates (2)17:15;165:25 Mitchell (1) 303:20 mix 111131:20 model 11180.3 modify (1) 211:2 moment (1) 31:8 Monahan (1) 240:7 money 1191123r9; 124:5; 126:20; 127.•16, 23; 128:8; 156:12, 1 S; 157.•2, 7, 8, 14; 160:20; 162:4; 167.•1, 2,172.6. 340:9, 14 Monster (1)167.•9 monster (4) 167.-10, 11, 15, 16 month (8) 70:3;161:24; 162.1, 5,12, 15; 170:23; 186:20 monthly (s)170:8, 15, 18, 19; 172:17 months (3) 74:13; 73:23; 308:11 Moore (S) 39:9; 240:11; 333:2, 4, 6 morning (1) 336:20 Morris (4) 6:13;134:5; 322:22; 323:1 . Morrissey (7) 7.•9; 8:4; 16:20; 186:3; 244:8, 13; 346:5 Mostly [1] 68:23 motion (1] 18:4 motivate (l) 205:14 motivatea (1) 306:10 Moto-cross (1)166:5 moto-cross (4)1 S9:2S; 160:16; 161:3; 166:7 moto-crosses (1)160:22 motorcycle (8)159:13, 14, 15, 16, 22, 25, 166:4; 214:2 move [4] 17.•18; 97.•17; 226:2; 228:10 moved (10) 74:18, 19; 75:10; 86:13; 164:11; 213:18; 214:24; 225:19; 336:8; 343:19 moving (4)17.•9; 120.1, 234:6, 23 Ms (69) 7.•3, 12, 17, 19, 20. 22; 8:24; 9:3; 13:10; 16:4; 17:19; 18:6; 19:14; 21:13; 27.•21; marked to Ms (415) 392-0650 Tooker & Antz )P14 a~3~ ~
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Errata S'heet Witnesss Lynn Beasley, Volume I Case: Mangini vs R.J. Reynolds 'la .hac•cu ('umRany Arch vs The American Tabaccu C'umpany Date: May 29, 1997 Note: If you are adding or deleting from your testimony, Plez:se print the extict words you wish to add or delete. Specify each change with ":,dd" or "cJelete" and sign this sheet. Page Line 301 2 "campaign was" should read "campaign. It was" ~... ~., , .., 308 9 "for" should read "or" 333 4 "Cooper" should read "Kueper" Witness's Signature: AL Date: ~ 9 :
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9uK Svsurtu Aopiipiwro 293:23, 24: 339:25 opposite (l] 12:12 orange [4] 99:12, 15, 16, 17 order (16) 710, 14, 15, 16; 8:13, 14; 40:24; 95:17,• 127:1, 3; 128:13; 133:14; 134:4; 229:24; 282:22 orders [1] 231:12 - original (1) 222:12 Originally (1] 205:22 originally (2) 164:19; 254:15 Orlowsky [3) 236:20, 22 OU[1]186:8 • ought [1] 318:6 outcome [1) 124:20 outdated (1] 249:14 outlets (3] 190:12, 13 outline (2] 10:22; 208:18 outlined (1) 72:18 outset (1) 284:24 outs(de (13] 46:17; 61:3, 7, 1S; 164:11, 19; 17S:S,• 196.•6; 302:23; 307:13; 308:13t 327.•24; 343:15 Outsourced (2] 50:13, 14 outsourced [1] 46:17 overall (9) 71:14, 1 S; 73:12; 76:24; 126:1; 169:1; 234:2; 263:7 Overbroad (1) 22:17 overbroad (2) 95:4; 112:24 overdeveloped (1) 339:15 oversee (2) 89:19 overseeing [2] 7'7:12; 308:3 oversees (1) 46:18 overtime (11214.5 -P- p.m.(111130:10,•188:10, 13; 230:15, 18; 270:23; 271:1; 310:5, 8; 346:11, 13 pack (6) 57:8; 109:1; 110:17; 220:6; 234:25; 294:7 Package (1] 109:5 Packaging (2] 109:17; 110:17 packaging (4] 110.•13; 234:25; 260:20 packs [1) 110:19 PAGE (23] 134:10; 135:2; 136:2; 137.•2; 138:2; 139:2; 140:2; 141:2; 142:2; 143:2; 144:2; 145:2; 146:2; 147.•2; 148:2; 149:2; 150:2;151:2; 152:2; 153:2; 154:2; iSS:2t 156:2 Page (11284:5 page [67] 44:14; 60:14; 62:3, 14; 206:2; 209:12; 221:10; 246:6, 8, 9; 247:6, 7, 10; 252:21; 253:14; 259:14; 261:4, 20,• 262:18; 263:6, 13, 14, 15, 17; 266:1; 267.•17, 22; 269:1; 277:2; 278:4; 284:3, 7, 8, 9; 287.•11; 288:7, 8; 289:25; 290:23; 292:25; 294:11; 295:12; 299:7; 306:6, 7, 19; 311:18; 322:9, 19; 323:20; 327:7; 328:23, 24; 331:6; 338:3, 4, 6, 18. 19; 342:18; 343:2, 8; 344:5 Mangini vs R.J. Reynolds pages (5] 133:5; 223:9; 278:6: 306:7r 338:6 pair (11220:6 Pam [2] 6:14; 14:7 paper (3] 290:7, 10, 14 paragraph [16] 54:19; 250:11; 253:4; 284:6; 295:16, 19; 318:19, 22; 320:2, 9, 13; 322:21; 323:25; 337.•7, 8 parallel [1) 164:5 parameters (1] 233:20 paramount (2) 320.•3, S Parks (3) 336:25; 337.•2, 3 parks (1] 131:24 Part (1) 217:14 part (32)19:14; 33:4; 36:1; 56:20; 70:18; 84:9; 107.•8; 108:8, 14, 17, 22: 111:3; 120:191130: 2S; 134: 7; 169:1; 193:1; 222:6; 225:3, 4; 231.21; 236:12; 237••17; 240:16,18; 245:13; 248.•12; 286:16; 296:7 11; 331:7; 345:2 part-time (S),120:4, 6; 2J9:S, 6,12 participate [1] 294:5 participated [1] 214:1 partic[pation (4] 106:19; 172:25; 293:10, 19 parties (2) 65:3; 1.13:13 partnersh[p (1) 166:17 parts (3) 49:18,• 252:6; 340.•11 party (4) 46:18; 165:1; 213:16; 2T1.•20 pass (3) 266:13; 267:2, 6 passed (2)12:24; 273:4 Patty (7] 46:22, 23; 51:4, 5, 16; 16S;S, 6 pay (1) 166:25 pays (1)167.•2 Pearson (2] 240:1 S, 16 ped (1) 192:23 pediatr[c (S) 192:12, 24; 193:3,7,8 peer (1) 297.•19 peers (S) 296:9, 17, 19; 297.•24; 298:25 pending (1) 316:9 Pennell (3) 86:18; 343:25; 344:2 Pennsylvania 1115.9 People (16] 7.•2, 5, 7, 10, 11, 15, 17, 21, 23; 104:8; 126:18; 160:22; 181:21; 182.•6,• 280.•14; 302:23 people (172] 13:17; 41:24; 42:5; 45:13,16; 48:4, 9; 51:14; 53:9;54:3,6, 12;57.•7;58:1,4; 61:6, 24; 67,•22; 72:151 75:6; 93:19; 96:4, 10, 14; 97••16; 98:8, 13; 99:19; 101:2; 102.2. 10,13,15;103:8;104:6,9,13, 17,19; 105.2, 13, 106:4; 107:11; 108:5, 11; 113:20; 120:3, S, 7, 25; 121:14; 126:16; 128:18, 23; 160:13; 161:1; 17S:S: 176:22; 178:23; 179:19; 180:2: 181:19; 182:4, S, 9, 10, 21, 23, 24; 183:2, 3, 19, 21; 184:1, 19, 20; 188:2, 3; 191:9, 10; 192:23; 193:18; Lynn Beasley - $i.9/97 196:8• 14; 197:23. 24; 198:12. 14. 18• 21. 24; 199:2. 8. 9. 11; 200:10,21;201:1,6,8,9, 15; 202:8, 18, 24; 203:10, 13, 25; 204:8, 16, 23; 205:4, 13; 208:25; 209:7; 218:2, 4; 219:21; 220:18; 221:2, 7; 222:2; 224:7, 18; 234:6, 25; 237:15, 16; 239:25; 246:2, 3, 4; 248:9; 249:13; 252:1; 255:2; 256:13; 258:9, 14, 15', 18, 20; 267:5; 272:25; 273:22; 278:18; 279:11, 15, 17, 23; 281:2, 23; 282:1, 2, 8; 289:6; 291:16;302:13;303:25; 306:17; 312:12; 313:25; 314:2; 319:19; 321:4, 17; 324:20; 325:14 pep (1] 72:20 perceived (2] 260:13,18 Percent (11327.18 percent (29] 199:25; 200.•4, 18; 209:17; 248:12,19; 251:8; 254:20; 255.4, 7,19, 20, 256:3, 5, 8, 10, 25, 2S7•3; 258:24; 259:6; 264:9; 291:2; 292:13; 320:16, 19; 321:19; 331:24, 2S percentage (3) 255:14, 21; 332.15 perceptions (6)116:7, 9, 22; 117.•9; 120:23; 281:10 perform (3) 71.8. 10, 11 performance (1] 340:4 perfume (1) 220:7 period (12] 15:4,11; 51:18, 20; 53:3, S; 167.•18; 168:11; . 241:20; 314:6; 336.•6 periodic (1] 308:10 permit (1) 181:5 permitted [2)16:21; 133:18 Person (3] 44:1Sr S2:1S; 129:15 person (S0)19:11; 41:]; 43:15; 46:25; 47.•4; 32:12t 53:7;54:11,16,17;SS:12; 60:13; 61:20; 62:5; 63:4; 70:23t 71:25; 73:2; 75:14; 87.•13; 97.•19; 99:14; 103:5, 9, 18, 20, 23;105:10;113:23; 129:5,11;169:16; 171:2St 172:5,11; 184:15; 192.3, 257:21; 278:18; 280:15; 286:23; 292:20; 312:4, 14, 15; 319:18; 321:7; 334:11, 22; 343:22 personal (2] 9:17; 270:12 personality (7)109:19; 218:24, 25, 219.•6; 232:15, 16; 280:1 personally 11187.10 Persons (2] 40:4; 54:21 persons (6) 40:6; 53:14; 34:22; 61:1; 285:14, 22 perspective (4) 32:3, 7, 23; 33.20 perspectives (1] 33:12 pertaining (2130.11. 14 PhWp (4) 6:13r 134:5; 322:22; 323:1 philosoph[zing (1) 222:22 ''orcaarce ov :,,xxiee,"6i Physical (1) 72:7 physical (4171:24: 72:4. S: 288:20 Physically [1] 223:22 physiological (2] 72:11; 222:14 pick [6)191:24; 220:6, 18, 19, 21 p[cked [6J 78.•4; 83:23; 84:3; 90:11,1S;27S:4 picking [1] 222:9 picks (1) 292:20 pickup [1) 291:7 picture (1)123:25 pictures [1) 343:7 piece (4) 33:17; 115:6; 290:11; 308:11 pieces (1) 128:6 place (13] 10:17; 30:3; 31:9; 48:10; 49:7, 12, 15, 22; 130:23; 131:St 132:16, 21; 229:16; 304:18• 345.15 PLACED (23] 134:11; 135:3; 136:3; 137.•3; 138:3; 139:3; 140:3; 141:3; 142:3; 143:3; 144:3; 145:3; 146:3; 147.•3; 148:3; 149:3;150:3; 151:3; 152:3; 1S3:3t 154:3; 1SS:3; 156:3 placed (9] 45:18; 47.•22; 51:17; 86:25; 128:8, 10; 130:17, 19; 132:1 S Placement (1)129:17 placement (12) 44:16, 23; 46:14, 19; 47.•3; 48:4, 25, 50:4, 20; 156:19; 164:11; 172:14 places (2] 47.•4; 165:14 placing (1) 45:6 PlaintitF (16) 6:2; 37.•17; 40:3, 11; 205:18; 222:25; 260:23; 263:16; 276:10; 283:18; 289:19; 311:7,• 318:10,• 331:1; 332:20; 342:4 Plaintit[s [1] 6:8 plaintiffs (4) 5:13, 15, 7.•6; 8:11 plan (44) 45:13, 14; 47.•1 S; 52.4. 60:11; 87.•23; 115:22; 156:9, 11, 14, 18, 2S; 161:8, 21; 162.•6, 7, 20, 23, 25, 163:2, 6,7,12,13,15,16,18,20,24; 164:1,2,4,7,8,9,14,16; 165:12; 166:9; 313:21; 319:13: 335:16; 340:1, 16 planned (3) 70:1; 335:14; 337.•7 planner (1) S1:2S planning (19] 47.•7, 16,18; 87•20, 22, 2S; 88:3, 6; 89:22, 23, 24; 164:10; 203:5, 6; 313:13,17,20;316:21;317.•3 plans (8] 164:19; 313:21, 22, 23, 24; 319:12, 25 plant (1) 324:12 plants (6) 203:3, 20, 21; 323:11; 324:21, 24 play (2] 123:25; 326:17 playback (3) 326:14, 19 playground (2) 49:11; 130:18 playgrounds (1) 49:13 Pleadings (1) 38:7 opposite to Pleadings (415) 392-0650 • Tooker & Antz a~3a~ (L4
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J /:lJ: J O:o: rV.9: JL./t; 55:16. 20: 63:1: 65:24; 91:11: 133:17: 134: 8: 1 S6: 6; 172:1 !: 183:11: ! 86:1; 188:18: 192:11; 205;17,•, 22J;16,• 227••16,• 228:2: 230:9;231:14,15;233:10; 241:11: 243:18; 247:20; 248:2. 18; 249:2. 23: 254:2; 259:14; 260:21; 265:25; 271:6; 272:2. 11: 273:8; 276:9; 283:16; 289:17: 309:20; 310:9; 311:5; 315:15:318:9;328:13;330:25; 332:19; 342:2; 345:21 MSA (9) 242:8, 13, 18; 277.•S. 22: 327••20: 328:3; 329:7 -N- name (29) 5:20; 8:25; 40:14; 4S:S: 59:2, 15. 18: 60:1. 7. 21: 80:3: 103:2; 107••9; 108:18; 165:7,• 187,•1 S: 189:10; 190:6: 19 7.•3: 235: 2S; 236: 21: 239: J 0: 241:1 S, 23; 306:22t 333:24: 342:8. 9 named (l1275:2 names (1) 304:11 Nance (1) 303:20 napkins (1) 159:10 NASCAR (5) 158:20, 13: . 159:5, 22: 165:24 National (3) 67••11; 199:19, 21 national (3) 49:19; 330:19: 340:22 nature (2] 10:1; 269:7 needing [1) 252:7 needs (8) 14:17,• 87••9: 222:14: 269:8, 17: 284:]5; 310:11; 345:16 negative (2] 12:9, 12 negotiation (1) 77:17 Neher (1) 241:2 net (1) 253:5 news (1) 55:24 newspapers (3) 156:20; 163:10 \'FO (3) 277:1 S, 17, 21 nice (1) 179:16 Nielsen (1) 64:25 Nielson (1) 329:19 nine (1) 345:19 nobody (2) 126:15: 168:16 nods (9) 37••10; 102:23: 161:16; 223:25; 243:14; 253:13; 268:9: 289:4; 327,•16 non-contidential (1) 8:15 non-existent (1) 179:1 non-roenthol (3) 333:21; 337:11, 2S non-party (1) 6:11 non-smoktr (1) 294:4 non-smokers (8) 178:15, 16: 179:19; 182:8; 183:12, 14. 16; 314:17 Non-users (11 100:7 non-users (1) 100:5 nonresponsive (1) 316:14 noon (1) 130:3 Nordine (3) 246:1 S, 16, 17 Normally (1) 338:24 normally (3) 59:4; 74:13; Tooker & Antz OJ:lt North (11342:13 Yorthern (3) 341:8. 12, 23 Notary (1) 5:19 note (7) 41:24,• 53:10: SS:1 S; 61:9; 70:14; 284:23; 344:23 notes (1) 266:9 Notice (1] 40:3 notice (1316:22, 23: 53:12: 70:1 S; 97••9; 115:23, 24: 129:9: 133:19; 229:13, 20: 231:3; 286:3: 331:6; 340:5 Noticed (2) 327,•2, 3 noticed (3) 3:13; 325:10,12 Novak (2) 240:15, 17 Number (4152:14,• 221:18. 24; 306:7 number (50) S: 9: 8:8: 9:1 St 17,•13: 40:14, 17.• 44:14t 60:13, 24; 61:11. 20,• 62:3,13: 63:7, 21: 68:5; J31:14; 169:8: 170:161198:22; 199:3, S, 16; IY):1.):ZYi:4: JW:LJ: 1.I leo:_ • 187:1» 19: 301:12:303:17;305:17:308:4: 188:7:199:25 206:8:226:15: 313:15: 319:8. 15. 20: 321:15: 227:10; .30:19: 232:7. a: 324:22:328:12;331:12,21; 240:1. 9, 21: 242:21; 244:3: 332:4: 336:19; 344:19; 345:10 247:8,11;250:14;251:20: objection (17J 16:20, 22; 252:4; 254:7; 258:7; 259:23; 20: 6; 21:18: 197••17,• 229:1 S: 262 .3: 263:15, 21; 264:6; 231:8, 10: 315:6, 16, 17, 20, 265:22; 23, 24, 2S; 316:16 266:22; 267:13, 19, 22; 275:1; objectionable (2) 20:12; 21:3 276:25; 277:2; 278:4; 288:3. 7. objectiotu (4) 8:8: 20:10; 11; 295:12; 297:2, 8; 310:22; 21:1, 9 327:12;335:13;336:10,17; objective (13) 108:6,1S; 338:8; 344:4 111:15,16:123:2,17;126:5: okay (4) 78:18, 22; 260:25; 221:4, S; 302:20: 305:7,• 320:3, 296:12 6 old ($6156:17; 102:18.• objectives (9) 49:18. 20,• 52:3: 103:19; 104:1, 6; 105:13: ' 101 •9; 122:24: 130:24131:3: 176:16: 177••2,11, 24,• 178:15.' 164:15. 22 16; 179:22; J80:7,• 181:10: objects (1) 7•14 obtain (3) 65:4; 254:24; 289:8 obvious (5) 46: 8: 121:18; 221:17.• 247.7.15, •2SS:3. 10,• 126:2; 313:2; 938:13 257,•13: 263:21: 264:6, 1 S; Obviously (7) 59:4: 61:3: 266:25: 267.•S.• 291:22; 294:8; 98:6; 124:3; 132:4: 157:6: 300:17; 208:14 306:5; 311:24; 326:5; 327:7; obviously (38) 42:5; 44:1, 3; 328:10; 329:1. 20; 339:20, 24. 47••8: S4:1S; 68:1; 77••16: 25; 340:1 78:19; 79:23; 82:11; 87••23: numbers (14) 38:8: 40:21; 90: 7,• 96:12; 99:6: 102:1 S; 128:12: 133:23: 170:21: 114:14; 126:1: 132.6. 164.3. 171:19; 172:4: 206:7; 255.9. 171:1: 197••22: 198:14; 212:19: 276:16, 18: 326:6, 7,• 317:5 215:3; 217••16: 223:J3; 256:16, numeral (1) 40:23 21: 260:11; 268: 4: 288: S; 300:9, 11. -0- 12;305:25;313:19; 327:19; 343:16 object (17J 6:21; 7••21; 8:8: Occasional (2) 120:2: 186:9 16:4: 19:13: 20:11,/13; 21:2, 5: occasional (8)120:2 9 11 14; • 211:4 97 •7 26 9 27 14 , , , , • , . . . . 21: 243: j: 259:4 17 20 226:12; 230:23; 316:14 . . objected [S) 53:12; SS:17,• occurred (2) 35:6; 303:6 occurrences (1) 30:9 61:11; 62:16: 133:1 October (6) 161:9 10 17 21 Objection (145)10:13: 14:15: , , , . 23; 162:5 15:8: 20:1: 21:17 • 22:17; 23:7 , . odd (1) 198:16 14: 24:4 21; 25; 23:16: 26:7 , . offer (Sl 7:17 • 254:9: 293: 9; 11; 29:20: 30:17 21; 28:6 , , , 294:10; 304:13 34:4; 35:9, 22; 36:6, 23; 39:12: offered (1) 7:15 21; 44:11; 45:22: 47••2: 43:18 , offers (21 108:21; 166:20 48:5: 51:9: S7••20; 58:5, 11; Oh (37) 24:17: 30:10 13: 19; 60:8: 61:21; 72:8; 59:9 , . 42:12; 4S: S; 48:1 S: 51:19; 23; 16 73:3: 82:25; 91:13 , , 67:5: 122:13; 161:22; 165:19; 21;94:5;95:3; 92:1;93:3 9 , . 187: 8: 193: 6; 2 06: 8: 242 :19: 97 :25; 101:23; 103:22; 105:16; 246:23; 249:3 24; 2S2:2S: 23;108:2;112:23; 107:13 , , 260: 2S; 262: 2S; 265:1: 270:14; 114:11; 117:6; 118:7; 121:19; 272:3; 276:18 23; 281:21: 20 19; 125:4 10: 124:13 123:1 , , , , , r 284: 8: 293:1; 295:18: 296:12; 0:18; 163:3; 16; 126:23; 16 305:12: 24; 165:25;166:10;169:19 , 313:4;318:13;326:8;340:4 170:24; 171:15; 172:18; oh(1)78:18 24; • 11 12; 175:1 173:6 , . . Okay (97) l0:10; 14:5: 18:25; 177:13: 178:8; 179:24; 180:24; 7 9; 24:14; 25:21; 27:24: 19:4 18; 183:24; 184:14; 12 182:7 , , , , 31:23; 37:6; 40:13, 20, 25. 185:3. 19: 191:19;194:13: 41:9 23; 48:12; 50:16; 74:3; 196:23; 199:7; 201:11; 204:10; , 78:2 20; 79:8; 90:10; 92:8; 212:2; 215:9; 222:20: 227:18; , 93:14: 93:7; 100:12, 16; 234:15; 235:8; 241:20; 244:12 , 24; 104:24: 110:1 102:18 21 23: 245:4; 248:3; 249:8; 250:5. , , , 20: 114:21: 118:16; 121:6: 23;255:23;257:1; 126:8; 263:3. 9; 269:15; 273:24: 130:5;132:24;133:24;157:13 279:3; 285:16: 286:11; 287:20: , 22; 163:16; 167:5; 169:5; (41~) 392-0650 51714 2139 200:1, 4; 201:2. 18. 19: 202:5: 204:17; 210:16; 211: 9: 244:18: 245:8, 9. 10, 12, 13: 249:14; 232:5: 256:4: 264:18; 263:6: 267••3, 3, 25; 268:11; 269:24; 275:6; 279:4; 292:14; 310:12, 24; 312:9;318:1;319:1;321:7, 12. 18; 322:23; 324:4; 332:16; 337:14 older (6153:17,• 176:25; 246:4: 254:19: 255:2: 322: S Oldest (1) 201:11 oldest [1] 201:10 olds (29) 205:1; 211:1, 2, 3, 12; 244:10, 11; 245:2, 23; 2S3:S; 254:21, 24; 255:4, 7, 13. 19, 20, 21; 2S6:S, 9, 11. 25: 257:4: 282: 24: 292:22; 3J3:11: 321:19 omitted(1) 315:12 ' one-third (2) 247.•22: 264:8 ones [27136: 7.• 38: 2: 42:17.• 63:4: 67••20; 73:19, 22; 110:10: 117:24: 118.•6: 119:4: 157:19: 162:21; 166:11, 25: 168:20: 209:10; 217:23; 218: 6, 9. 15: 222:10. 11: 235: 23: 280:19, 20; 281:20 ongoing (2) 210:23; 330.6 onset (1) 179:4 OOH (1) 186:10 operater (1) 5:16 operating (16)156:9• 11, 14. 18, 25; 161:8. 21; 162: 6, 7, 20, 23: 163:12: /64: 2, 4; 165:12: 166:9 operator (3) 91:9; 188:16: 271:4 opine (1) 181:5 opinion (14) 29:1, 6; 197:21: 198:10, 11: 216:17, 18: 222:18; 248:22: 2S1:S; 312:15; 313:7,• 314:1, 4 opinions [1] 262:7 Opportunities (1) 243:19 opportunity (161 7:19; 87:8: 254:10, 13, 16; 235:10; 256: 24; 258:1: 259: 4, 11. 12: 321:21, 24: 339:1. 8 opposed (8) 7S:1S: 123:13: 261:22: 279:14; 290:16: From MSA to opposed M
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- VV...r. - / IL.y E'rraw Shee1 Witness: Lynn Beasley, Volume I Case: Mangini vs R.J. Reynolds Tahacru ('umpany Arch vs The American Tabaccu C'umRany Date: May 29, 1997 Note: If you are adding or deleting from your testimony, please print the exact words you wish to add or delete. Specify each change with "add" or "delete" and sign this sheet. Page Line 112 10 174 14 180 9 184 17 184 23 191 2 198 9 243 14 253 13 254 6 258 13 259 3 285 8 289 4 301 1 301 1 "Um-hmm" should be "Yes" .. _... ~ ...... ~.. ~, _ "Um-hmm" should be "Yes" "it" should be "them" delete "not" _._..._.. , add "chance" after "better" "Lights" should be "Wides" "decided today" should be "decided to" "(Witness nods head.)" should be "Yes" "(Witness nods head.)" should be "Yes" "Unh-uh" should be "No" "(Witness shakes head.)" should be "No" "do the" should be "do you" "joint"-should be "joined" "(Witness nods head.)" should be "Yes" Ln add "when" after "about" "I direct -- they turned in" should read "I directed the development of turning" Witness's Si~nature: ~Date: 7 ~ ~ ~ :
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346 MS. JOHANN: How were you doing, Frank? Did you 10 11 12 13 14 15 16 17 .18 19 20 21 22 23 24 25 get MR. JANACEK: Well, I got to where we got yesterday. So we'll have a good gauge at least when we talk to Mr. Morrissey again as to how long his depo will take. THE VIDEOGRAPHER: Shall we go ahead and go off the record now? MR. JANACEK: Yes, you can go off the record. THE.VIDEOGRAPHER: This marks the end of Videotape No. 4 in the continuinq deposition of Lynn Beasley. We're off the record at 6:26 p.m. (Whereupon the taking of the Witness' testimony was concluded for the day at 6:26 p.m.) ---000--- ~ 7/dlq-~ 9 ESS TOOKER & ANTZ - (415) 392-0650 . ~ 346
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Buic Snums Aopi cuioro -~- 7 (3) 253:14; 306:19; 319:5 70 (1) 290:2 70s (5) 206:11; 207:9, 10. 25; 292:9 75 (1) 290:2 7Sth (S] 32:16, 21, 24; 33:7; 302:15 -8- 8(10] 60:13, 24, 25, 61:1, 2, 11, 20,• 252:6 80 (1) 290:2 80-85 (1) 337.•2S 80s [S] 237:1, 4; 261:10; 268:19; 276:22 82 (1) 207:19 83(1) 264:21 84 (S) 79:21; 237.•3; 238:25; 239:18, 20 8S [4] 79:21; 290:2, 3; 303:4 8Ss (1) 109:2 86(1]303:4 87 (4] 32:10; 50:1; 126:22; 264:21 870 (1) 342:12 88 (2) 86:1 89 (1) 247: 4; 247.•3 4 8:00 [1] 345:25 -9- 9 [2] 62:3; 276:10 90 (1) 214:16 90s [7] 193:14; 247:3, 4, 5; 268:19; 272:5; 276:15 92 (4] 199:25; 200:4, 17; 335:19 93 (3] 50:1 S; S2: 7, 10 93-94 (21214:12, 16 939359 (1) 5:7 94402 [1] 5:18 96-CV-S903 [11S:9 97 (1) 163:21 997 (11327.5 9:00 (1] 345:24 9:06 [1] 5:11 9:30 [11345.•20 -A- a.m. (4] 5:11; 91:3, 6,130.7 AA (1) 66:17 ability (8) 13:11; 19:23; 23:1, 2; 59:8; 60:1; 178:19, 20 able [9] 22:21; 46:4; 59:2; 64:20; 181:6; 243:10; 276:13; 318:6; 326:17 absolute (1] 160:25 Absolutely (1) 251:16 absolutely (S] 34:2; 181:12; 227:14; 287:9; 330:13 abstract (2] 246:7, 10 acceptabWty (3] 217.•14; 297.•19; 298:1 acceptable (1] 133:16 accomplish (12] 91:21; 92:14; 94:24; 95:10; 96:23; 98:21: 125:21; 297:11, 15;.300:22; 305:7 Mangini vs R.J. Reynolds accomplished (2] 301:5, 10 accomplishes [1) 91:18 according [1] 329:25 account (S] 64:7,- 272:14; 320:21; 331: 25; 341:3 accountabWties (1) 75:8 accountable [2] 70:19; 276:8 accounts (5) 63:24; 242:16, 17; 277:9; 327.•20 accurate (13) 7.25, 11:6,12; 16:14; 65:18; 171:20; 194:4, 7; 200:12; 221:20; 264:23, 24, 25 accurately (2] 13:12, 15 achieve (S] 122:9; 124:18; 132:23; 253:3; 257.•9 achieved (3) 66:13; 122:23; 123:2 achiev(ng (1) 122:7 acronym (t] 267:14 action (4] 9:10, 16; 10.4, 128:21 actiotu (3) 6:11; 128:23; 172:23 actual (S) 115:9; 158:18; 172:23; 218:20; 291:16 ad (6) 69:13, 15, 126:12; 215:20; 326:20; 342:13 add 12] 7•2S; 231:11 added (2) 216:15; 218:14 addition (1) 6:25 Additlonal (1) 89:1 add(tional (6] 11:7; 76:7; 88:25; 128:16; 133:17; 218:10 addresses (1) 304:11' ' adtnia(strat(ve (1] 2874 adm(ration (3] 296:8, 17; 298:25 adopt (1) 297.•22 adopting (1] 316:7 ads (13] 44:23; 48:10; 76:13; 126:17,18; 132:1 S, 16; 165:14; 212:1, 6, 8; 215:21 Adult (8) 53:21; 183:14: 243:19; 259:16; 28s:24; 302.5, 331:17, 23 adult (197] 53:17, 19, 21; 54:13, 14,18, 23; SS:3, 5, 7, 13; 57.23; 61:23; 62:6; 71:5, 7;85:9.10,24;86:1;92:18, 22, 23; 93:16; 94:9; 96:4; 102:14, 18; 106:18, 20, 21; 108:11; 113:2; 119:13; 139:8; 160:11, 2St 173:20; 174:5; 175:20, 21; 176:12, 13, 14, 17, 19; 177:18, 22; 178:11; 180:13, 14, 17; 181:3, 16; 182:3, 15; 184:18; 185:9, 11; 190:13, 14; 191:7, 8; 202:23; 205:2; 208;8, 11, 22, 24; 209:6; 210:2, 13, 16; 211:19, 20; 212:7; 214:8; 218:17; 222:1, 2, 6; 226:18, 19, 20, 25; 231:16, 18, 23; 232:2. 9, 18; 23S:S, 6. 11, 12; 243:21, 22, 25; 244:3, 5, 6, 11, 15, 16, 25; 250:15, 21; 251:8; 252:1, 3; 253:19; 254:9, 12, 14; 256:4; 263:24; 264:3; 265:2; 266:8, 25; 26y:S, 11, 15, 16; 268:5, 6, 21, 22; 269:19; 274:2, 3; 279:7; 285:7, Lynn Beaslev - 5/29/97 corcOrU;Ce „ _,w,.x„0,, ~ 23; 286:2: 292:17; 294:6. 15, 19. 23: 295:2. 3: 298:24; 299:16, 17; 300:1. 6, 7, 10, 13, 19; 301:15, 16, 17; 302:4, 19, 22; 304:8, 15, 16, 18, 20; 305:4, 8, 9; 307:21; 309:2; 312:13, 19; 314:18; 318:8; 319:7, 9; 320:9, 12, 14, 15, 25; 321:23, 24; 331:10, 19; 332:13, 14;333:22; 337:12; 344:11, 21 adults (12] 106:3; 108:12; 160:15; 197.•2St 208:19; 209:12; 235:6; 270:2; 279:23; 294:25; 299:1 S; 308:22 Adventurous (2] 217.6; 298.18 adventurous (6] 216:7, 8, 24; 220:16; 280:21; 281:21 advertlae (9) 49:18; 52:2; 97.-3;124:11,12,14,16; 173:14; 174:2 advertisemeat: (1] 339:25 advertiser (1] 95:7 Advertisers 11167.11 advertisers (1] 68:13 Advertising (8) 42:16r 91:25; 92:19; 94:12; 178:20,• 179:3; 180:4; 342:11 advert(sing (192127.•9,13; 28:5, 9, 15, 32.4, 8, 22; 33:3; 41:3, 14,17; 42:14,1S; 44:17, 19; 47:23; 48:11, 13, 22; 49:7; J2:18; 67.•11,14; 69:3, 8, 70:11, 18, 19, 76:10; 79:22, 25186:23, 25, 91:12, 22, 24; 92:3, 6, 7, 8. 9,13, 23; 93:1, 4, 18, 25; 94:4, 7, 13, 17, 20, 23, 24; 95:10, 13, 23; 96:6, 9, (8,21;97:1,4,22,24;98:2, 16, 24; 99:2, 9, 13, 14, 20; 100:17; 101:1, S, 15; 102:8, 9; 103:6, 7; 106:22;107:3, 6, 18; 108:13, 15; 111:11, 12,15; 112:6, 19; 113:3, 22; 114:9, 18; 116:10, 12, 23; 118:13; 119:9; 121:18, 22, 25; 122:2, 7, 10, (1, 14, 1S, 16, 18, 19; 125:3, 6, 8, 14, 19, 22; 126:6, 8, 9, 21; 127;16; 128:6, 8; 133:20, 2 1; 156:19; 159:9; 163:17; 170:21; 173:10, 17; 174:12, 18, 20, 24; 175:9; 176:11, 20, 22; 178:1S, 23; 179:1, 7, 9, 10, 12, 15, 18; 1802, 7, 15; 207:7, 8, 9, 11; 210:20; 211:19; 212:11, 16, 19; 213:7; 214:15; 215:16, 18; 219:24; 221:4, 5; 226:3; 237:6; 243:17; 245:3; 274:22; 279:1; 294:12; 295:25; 309:5; 325:3, 8; 339:3, 4; 340:10 advke (1) 44:4 advise (1) 47.•21 affect (7] 174:24; 175.3, 178.6;180:4,7,10,12 affected (2)176r22;17'7.~1 affects (1) 181:17 atfiUated (2] 225:17, 18 affirmatlve (1) 12:9 affirmatively (:] 13::15, :1 African ('_) 85:10, 24 aftertaste (2] 71:18: 73:10 age [57] 53:22; 54:23: SS.•19; 61:12; 62:18: 104:8, 9, 10, 17, 19, 24; 176:20; 191:10, 12; 193.•8; 196:1, 2, 4; 200:1, 7, 16; 201:6, 15, 203:16, 25; 209:14; 211:23; 232:20; 245:10; 247:22; 248:8, 12, 19; 254:17; 258:9; 264:9, 10; 267.•13: 291:3; 292:14; 300:10; 319:7; 320:12, 16, 21; 321:3, 17; 322:8, 23; 323:1, 10; 331:10, 11, 20, 24; 338:1 agencies (11) 28:5, 9, 14, 15, 42:14, 15, 49:7; 207:16; 302:17, 22 Agency (1) 222:22 agency (12] 27.•9, 13; 69:13; 70:21; 76:11; 207.-7, 8, 9, 11; 30S:S; 342:14; 343:15 ages (81200:21; 201:1; 202:8; 246:2; 254:19; 2SS:2S; 256:1; 321:14 aggressive (1) 280:22 Aging (t) 321:4 nging (S) 321:1. 3; 322:2, 4, 7 agree (19] 47:24; 192:14, 17; 195:24; 199:5; 222:4, 15, 248:1,17; 250:3, 4; 252:10; 253:8, 12; 254:12; 268:2; 288:19t 292:19 agreed 13] 7.•12; 133:9; 250:1 agreeing (1) 199:14 agreement [3] 7.•3; 8:2, 7 Aim(1]96:16 a(131S:S,7,8 alcohol (1] 13:10 Alicia (1) 303:19 aUgn [1] 329:25 allocate [1] 339:7 allocated 11177.12 aUocat(on (1) 119:24 allow [1] 229:6 alone (2) 298:12, 22 alternat(ve (1) 80:19 Alvarado (118.5 amb(t [3] 228:20; 229:13, 20 American (3) 6:9; 85:10, 24 amongst 11157.24 amount (131127.•16, 23; 129:13r 131:8, 10, 19; 156:11; 160:20; 161:18; 163:14; 210:13; 256:12; 257.•3 Analysis (2) 278:1, 3 analysis (2) 118:12; 189:5 Angeles (10] 63:22; 64:1, 2, 4, 11,19;327.-14;330:4,8,9 Anglo (2] 85:17, 18 an(mal (2] 343:13, 17 Ana (3) 335:2; 338:8,11 ann(versary (2] 32:21; 33:7 annual (2] 251:21; 308:10 answer (4S] 12:1, 3, 8; 13:6; 14:15116:17, 21, 2S; 17.•12, 20. 25;19:3, 20; 24:5; 26:8, 10, 18; 27.•2; 28:7, 12, 14; 30:4, S; 34:4; 35:10; 48r6; S3:1S; 56:13; 60:4; 92:4• 9S:S; Tooker & Antz 7 to answer (415)392-0650 '51-4 Iq 0~133~1
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Buic Svsumt AppiWauom billboards (26J 44:17, 23; 45:17: 46:14, 1 S: 474, 9, 10, 19, 22: 48:1; 49: 8, 9, 13, 16, 19, 22, 23; 51:17,• 132: S, 22: 156:16; 163:9 billion (1) 170:22 birthday (6) 32:17, 24; 213:15, 17; 216:4;,302:15 Biswell (3] 335:2; 338:9, 11 b(t (6] 112:22; 169:17; 179:21; 230:3; 240:9; 325:2 Bitz (11338:8 Bitzel (2) 333:23; 338:8 B(xenstine 14) 6:17; l4:7t 132:25; 31 S:1 S b(zarre 111343:1 blank (2] 133:5 blends (1) 276:4 Blynn 121317••8, 9 board [4] l31:11; 132:10; 343:13, 18 Bob (6) 80:2, 3; 281:13, 16, 19; 282:10 bonding (1) 33:16 booklet (1) 11:2 born [1] S7••18 boss (12] 43:3, 19; 44:2, 4; 68:23, 24; 69:3; 7S:S; 88:9; 224:l0; 246:19; 303:l9 bosses 11115:14 Boston (2) 339:14, 16 bottle (1) 220:7 bought (1) S7••10 bound i1] 7:12 Bovet (4] 5:17,• 91:10; 188:17,• 271:5 box (3] 108:25; 110:18t 234:25 boxing [1] 167:23 Boy [1] 240:21 brainstorm (1) 345.•6 brainstorming (1) 345:4 Brand (S] 190:8,• 208••3; 232:14; 266:13; 340:20 brands (79) 43:10, 12; 49:18, 19, 20; 69:18; 71:12; 76:15; 78:7 12; 83:25; 84:3; 87••2, 4, 6, 7, 11, 12; 88:1; 89:18, 19, 20, 22; 96:25; 98:9; 106: S; l12:3, !St lS7:11; l71:24; 189:5,6,7,8,10,11,13,14, l6,17,18,24;190:4,6; 202:18• 204:9; 208:13; 227:4, 5, 8; 231:24; 232:2; 234:8, 23. 24; 237:13, 15, 19; 238:19; 242:9; 251:10; 254:21; 256:4, 9, 11, 22; 257:18; 258:25; 260:4; 274:3; 282:22; 292:22; 313:21; 321:20; 332:16 Break [I] 130:4 break (14] 12:17, 18; 66:16, 19; 84:6; 90:21; 129:21, 24; 130:2; 156:11; 226:21; 227.•l; 253:6; 343:16 breaking (2] 162:18; 232:10 Brief (4) 91:4; 188:11; 230:16; 270:24 brief [1] 167:17 briefly (3] 77:6; 8S:2S; 86:1 briefs (2) 38:12; 39:21 Mangini vs R.J. Reynolds bringing (1) 7:22 broken (1164:22 Brown (2) 6:16, 19 brown [1] l08:25 BU (2] 187••19, 20 budget (30] 69:1, 7, 23, 25, 70:1, 2, 3, 4, 6; 75:1 S; 77:! 1, 12; 157••20,• 1 S8: 23; 162: 3, 7, 8, 9, 17; 163:14; 166:12; 170:8, 9, 13, 15, 17; 171:4, 10, 14; 172:17 budgeted [7)157.•S; 1S8:2S; 161:6; l6S:10; 166:9; 168:1; 170:10 budgets 111171.23 build (1) 2S1:1S building (1) 323:11 bulb (1] 302:12 bullet [9] 248:11; 2J9:19; 260:2; 290:25; 292:16; 295:14, 20;331:6,14 bunch [3] 81:12; l39:16; 330:22 Burrows (23] 225:1, 6, 16; 227••16; 231 rlS; 233:10; 247:20; 248:2, !8; 249:2, 23; 254:2; 262:10, 1 S; 271:6, 13; 272:2; 273:8; 274:5:291:8, 9; 292:3, S bttsiness q15] 9:17; 64:7; 123:7, 8; 187.•20, 21, 23, 25, 188:2, 3, 4; 233:19; 258:1; 239:12; 320:20 butchering (1) 236:21 buy (5) 47.•8; S7••8; 293:25; 294:7; 321:13 buyer (3) 186:5, 7, 8 buying (3)164:121256:16; 257.•22 buys (1) 280:16 by-product (1) 323:17 -C- C•A-R-R (1) 47••13 California (25] 5:6,12, !8, 19, 23, 7••2; 8:10; 20:14; 21:19; 27••1; 62:15, 21; 63:10; 65.16, 22; 91:8, 10; 188r1 S, 17; 271:3,5;341:8,9,12,23 call 124] 46:7; 56:1, 8, 24; 58:4,10,13,16;59:3;72:1; 104:14;115:2,3;116:5,6,7t 157,•11; 186:20; 196:25; 197••1, 2; 236:12; 322:7 Calling [t)192:23 Calls (6) 58:11; 59:9; 92:1; l80:24; 299:8; 328:12 calls (3) 19:13; 300r231319:9 Cahn (1) 72:22 calm [1] 72:20 Cataaraderie (1) 298:7 camaraderie (2) 298:6, 9 camel Cn 81:17; 213:18, 22; 216:10,16;343:13,17 Camels [3] 180:19; 185:17; 209:6 camels (3) 217•17; 298:8, 21 campaign (133] 7••7,:21; 32:13, 22, 23; 33:4, 6, 13; 34:18,21;41:3,10,14,17,21; Lynn Beaslev - 5129/97 42:2, 6. 10; 43:5; 44:6, 9, 10: 52:18: 79:22, 2S; 80.•2, 3, 4, 6, 10, 11, 15; 81:9, 23; 116:2; 126:22; 127:11; 156:12, 19, 23, 24; 157:3; 163:17,• ! 76:11; ! 77,•8, 20, 21, 23; 178:5; 181:5, 9; 193:15; 210:20, 22; 211:2, 10; 212:5, 11, 20; 213:4, 9, 11, 25; 214:7; 215:6, 7, 8, 14, 19, 23; 217:19; 219:11, 13, 14,17, 24; 228:20; 229:2; 237:6; 244:19; 245:3, 11; 254:15; 274:22; 278:21, 25; 279:6; 281:9, 13, 17, 19; 282:10, 15; 285:12; 287:10; 291:6; 295:5, 25; 296:6; 297:14, 25; 298:1, 4, 5, 13, 15; 301:2, 23, 25; 302:15; 303:9; 304:2; 305:3, 6, 10, 1S, 18; 306:12, 14; 308:19, 21; 309:4, 9, 10; 321:22; 341:20, 22; 342:16 campaigns (4) 80:7, 8, 9, 19 Cattadian (1) 179:6 canceied i1] 333:7 capacities (1) 156:12 capacity (9) 9.19, 68:20; 70:12; 203:6; 271:13; 273:9; 307••17; 323:12; 324:11 capture (i) 62:6 capturing (2) 2S2:S, 6 car (S)158:20; 159.5, 213:20; 220:7; 260:14 care (1] 326:2 career (1) 243:24 careful 111227.22 Carlton (4) 71.10, 13, 14 Carolina [1] 342:13 Carr18]47.•7,11,13,14;50:3, 10,18; 164:12 carton (11110:18 Case (1] S:7 case (38) 5:9; 7.•2, 5, 9, 11, 14, 17,21,23;8:16;9:12,13,17; 21:4; 26:14, 15, 27.•21; 29. 1; 35:18;38:7,15,16,18;39:7, 9, 11, 15, 21; 107.•9; 127.•14, 19;173:19;218:17;231:3; 234:13, 20; 337.•20; 340:25 cases (1] 288:17 Cash (21158:3, 5 categories (18) l09:10; 110:1,2,8,21;111:9;156:18, 24, 25, 1S7••4,13,15; 158:14; 161:18; l62:4; 169:10; 191:21; 220:8 categorized 111291.22 category (26] s2:16; SS:11; 60:13, 23; 92:13; 100:7, 10, 11, 19, 21; 102:2; 104:21; 124:8; 126:1; 157.•17,• 171:11, 161187•4, 13; 220:5,10; 268:11; 322:23; 323:1; 324:4 Caufleld [5] 83:16, 17; 303:18, 24; 305.2 caused (2) 177,•21; 213:5 caution (2) 11:9,12 cc (1) 336:24 celebrate (1) 302:15 celebration (3) 213:15,17; 216:4 :orcaaut-e n ..ao.5ee•toCensus (1) : 77::5 census (1) 277:23 Center (3) 66:1, 7,• 194:17 center (1) 308:22 Century (11] 76:21, 23; 77:20; 78:3, 4, 6, 9, 15; 79:6; 83:21, 23 CEO (2) 41:19; 64:18 cetera (3) 49:13; 68:5; 164:23 challenge (1] 266:8 chance (4] 11:4; 174:21; 184:11; 325:17 change [24] 11:8, 9; 19:5; 84:12; 87••16; 162:12; 170:17 19, 21; 179:20; 188:6; 211:16, l7;214:23;215:1,16,17,18, 19; 2SS:17; 294:22; 295:2; 345:16 changed (20] 11:11; 77••3; 118.•10,12;120:lS;212:1,11, 16; 213:11; 215:6, 22; 216:13; 241:14, 23; 244:2, 21; 306:7; 314:11; 316:4: 327.6 changes (26] 11:10,• 84:1 S; 118:1 S; 161:24; 162:3, 4; 164.•18; 170-•8, 15; 212:17, 18,• 213:4, S, 6, 7, 9, 13; 214:18, 21,23;213:8,15,24;-216:1,2 changing (1] 213:1 character (4) 80:14; 109:23; 305:12; 342:20 characteristic (3) 217••18, 19; 297:20, Characteristica (1) 309:10 characteristics (59] 72:5; 109:4,5,6,14,17,20,23; 110:2,11,13,lS,17;190:1; 212:10, 24; 2•16:9, 12, 15, 217:1, 4, 11, 15, 23, 24; 218:2, 8, 10, 11, 12, 19, 24; 220:12, 19, 20; 221:7; 222:4, 8; 226:221227.•2; 231:20, 24; 232:11,13, 15; 278:13, 16; 280:12; 281:5; 296:1, 4, 6; 297:17; 298:17, 19, 20; 305:24; 309:8 characterization [6) 90r9; 192:15,17; 244:12; 248:4; 331:21 characterize 12] 251:14; 29S:2S characterized 111306.15 characterizing (1) 324:17 charge (15] 45:6: 70:24; 75:14; 87.•10, 11, 13; l18:21; l68:1S, 25; 169:12,15,16; 170:3;192:5; 202:17 charges (1) 1S7••18 chart (3) 320:18; 323:21; 327.•17 check (4) 22••11; 23:20; 265:23; 342:1 checked (4) 133:3; 252:11, 13,20 child (1] 59:18 children (5] 49:11; 59:16; 60:6,11;130:18 chip (1) 119:23 chips (11119.24 choice (9) 96:2t l03:1, 4; 119:25; 121:11; 180:10; Tooker & Antz billboards to choice (415) 392-0650 6 \-4 ILI a
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Mangini v. R.J. Reynolds Tobacco Lynn Beasley, Vol. II- 5/30/97 ; PAGE 347 TO PAGE 688 CONDENSED TRANSCRIPT AND CONCORDANCE PREPARED BY: TOOKER & ANI'Z Certi,fied Shorthand Reporters 131 Steuart Street, #201 San Francisco, CA 94105 Phone: (415) 392-0650 FAX: (415) 512-9543 Ln ~ I ~ OD . ~`
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euic sKUM, .,,PI[C„mm _ Mangini vs R.J. Reynolds qualitative [6) 112:19, 21; 113:18: 114:1, 23, 24 qualitatively (2) 112:8, 12 qualities [1] 101:1 quality i3] 276:6; 280:16; 287.•3 quantitative [18] 112:7, 9; 113:13,16,17,23;114:1,23; 115:4, 6, 7,• 116:23; 117:5, 9; 118:11; 119:13; 121:7,• 227:12 quantitatively [4] 114:3, 8; 11S:1S; 119:8 quarterly [1] 67:16 question (78] 11:25; 12:2, 7, 14; 14:16; 18:1 S; 20:2, 4, 20, 21, 22; 32:18, 19; 35:10, 12, 14, 18, 19; 48:24; 49:3, S; 60:5, 9; 70:16; 82:22; 92:3; 93:10, 22; 95:4; 97.•11, 22; 99:24; 101:25; 107.•14; 112:24; 113:21; 114:6; 119:1 S; 121:20; 122:12, 16; 125:13; 127:12; 128:22; 129:7; 163:4; 175:2, 12, 25; 179:16, 17, 25; 182:13; 185:4; 196:24; 201:13; 204:11; 208:15; 211:5, 15; 215:10; 227:10; 229:5; 234:16; 245:5, 6; 249:15, 16; 293:14; 306:11; 308:5; 310:22; 316:9, 13, 24; 345:11 " questioned (2) 299:22; 301:19 questioning [1] 97:8 questionnaires [1] 72:25 questions (31] 10:3; 11.4, 17:12; 20:12, 16; 21:3; 47.•1; 59:20, 24; 112:13, 16; 115:19, 21; 116:5, 6; 117:12, 14, 16, 23; 118:19, 22, 23, 24; 119:5, 17; 122:1, 11, 13; 206:15; 230:21; 289:5 quick (1) 127:22 Quit (11229:25 quit 1112 79:5 -R- R.A. [1] 240:25 R.C. 111246:15 R.J. [80) S:S, 7,• 6:15, 19; 7.•S; 9:21; 10:7,• 13:23; 13:7;18:23; 19:11, 16, 2S; 20:3; 21:16, 23, 25; 22:4, 7, 8, 16, 23, 25; 23:5, 8, 10, 11, 13, 19, 22; 24:23; 25:5,11;28:10;29:9,13,19, 23; 30:11, 14; 37.•11; 40:4, 7; 41:19, 25;42:19,• 44:22; 53:19; 65:5; 68:17; 81:1, 19; 82.:9; 83:18; 132:25; 164:20, 25; 165:16; 195:3; 200:20, 24; 203:23; 204:7, 15; 225:7, 9; 233:5; 237:25; 241:5; 279:1; 291:25; 307:18; 310:10, 23; 312:20; 313:1; 317:10, 15; 329:15, 17 race (1) 159:14 racing (6) 1 S9:2S; 167:9, 10, 11,16 radical (1) 319:18 raWes (2) 159:13, 23 rally [1) 159:15 ran (3) 213:24; 214:14, 15 random (2) 192:4, 7 randomly (1] 22:22 Randy (1] 6:8 range [5] 171:2, 3; 173:2; 176:20; 232:20 ranges [2] 171:1; 196:6 rank [1] 273:4 rate (4] 71:13, 14; 121:12, 16 rates [ 1 ] 203: 9 rating (1] 131:J0 rational (1) 306:9 rationale [1) 290:13 re-establish 111332.6 reach (4] 160:11, 25, 161:1, 2 react [2] 162:2; $02.9 reaction (4) 205:6; 212:18; 306:1, 9 Read 111263:18 read (49] 38:13; 52:1 St 61:3, 7, 1 S; 181:18,• 183:4; 205:20, 23, 223:3; 247.•17 18,• 250:11; 251:17, 20; 2S2:2S; 253:1, 17; 259:20, 21, 25, 261:12t 263:19, 20; 266:3, 4, S, 11, J7, 19; 267.•22; 268:24; 269.4. 275:12; 27•8:7t 283:19; 287:13; 288:8, 9; 289:22; 306:5; 311:24; 312:1; 318:22; 322:13; 331:7; 337:6 reading [1] 338.•14 real (2) 201:8; 321:23 Rea[i.stically [1] 284:7 reason (25] 13:14; 28:11; 61:25;172:7; 178:13; 179:1; 189:23; 194:6; 198:5; 199:16; 200:13, 1S; 202:25; 203:4,19; 208:5; 209.25, 228:5, 8; 303:5, 8;323:3,7,9;324:13 reasonable (1] 69:16 reasons (12] 203:3, 22; 210:18; 213:5; 220:25; 221:131 323:9; 326:3, 22, 23, 327:5; 338:20 reasonss 111203.2 rebeWous [3] 216:7, 9; 298:18 recall (77] 9:14, 18; 10:8, 9, 14,16,20;23:23;25:1,9,12; 26:3, 4, 6; 27:11, 13; it8:4; 29:17, 22; 30:3; 32:16; 34:10, 14,17;39:23;66:10;70:6; 72:22; 73:22; 74:4; 77.21; 86:3; 89:8, 14, 16; 111:10; 159:24; 166:11, 14; 167.•17, 23, 24; 168:16; 183:1; 189:18; 200:10; 217:12, 16; 218:15; 224:23; 225:11; 233:6, 10; 236:25; 245:22; 249:1; 261:15, 16; 271:16; 272:20, 21: 274:18; 289:12; 304:17; 305:10; 307:7, 10; 325:7, 9, 14; 326:3, 14, 22; 329:22, 24 recalled (2) 36:11; 332:25 recalling (1] 326:20 recalls (1] 26:16 receive (1) 272:22 received (2) 314:20; 340:9 Lynn Beasle~ - 3i29i97 ~ receiving (1) 210.•12 recent (2) 248.25: 283:11 Recenting (1) 226:6 recently (9) 80:16, 24; 82:1: 169:13; 214:5; 275:3; 284:21; 333:10, 11 receptionist (1) 12:24 recess [5] 91.-¢; 130:8; 188:11; 230:16; 270: 24 recogn(ze (3) 266:20; 342:8, 9 recollectittg (1) 240:19 recoliection (12] 16:9,18; 17.•2, 24; 34:5; 3Sr6, 21; 36:15; 1:i7.•2S; 171:22; 297.•1S; 333:19 recollections (1) 31:19 recommend (1) 52:2 recommended [3] 41:15, 16; 44:3 record [34] S:2S; 6:20; 7.•1, 19;17.•13; 27.18, 21, 23; 61:9; 91.3. St 130:1, 6, 9; 168:17; 188:10,12;230:2,8,14,17, 19, 270:23, 25, 310.2, 4, 6, 7; 315:16; 322:16, 17; 346:7, 8, il red (1)101:2 redemption (2) 293:9, 18 reduce [1] 210:13 referee (1] 8:7 reference (2] 293:6; 315:11 references (1] 261.2 referred 111317.4 reflect 17] 26:1, 13; 28:21; 29r6, 8, 13; 302:19 reflected (3] 30:2; 31:3; 285:21 reflecting [1] 303:6 reflects (1] 314:25 refresh (6) 3Sr20; 36.9, 14; 38:2; 333:18 refreshed (10] 16:9, 17; 17.•!, 24; 31:22, 24; 34:5; 35:6, 20; 36: 7 refreshment (1) 326:16 refused [1] 7.•17 regard (3] S3:J6; 91:17; 119:16 regarding (9) 41:2; 44:1 S; 53:8; 54:21; SS:12; 62:5; 129:1 S; 196r6; 233:19 Regardless (1) 268.8 regardless [2] 18:5; 294:3 region (10] 338:23, 24; 339:14;340:6,17;341:4,9, 10.19 regional (1) 65:4 regions (t8] 64:22; 6S:S, 12, 13, 19; 131:2; 330:1; 338:20; 340:21,23,24;341:7,8,13, 23.24 registered [1] 315:23 regular (S] 56:9;197:6, 8, 12; 200:18 regularly (2] 198:13, 17 reinforce (2] 210:2; 333:18 Reinforcing (2] 214:15, 16 relate (5) 230.7, 306:1; 340:1 S; 345:1, 13 related [4)110r9; 12S:2S; ~JIrOfSillCt \ ..OOC)tt~S231:21: 334:10 relates [:) 109:21; .121:.1 relating (4) 7.•7, 20; 201:12: 230:22 Relations (1) 342:12 relations (l) 342:14 relationship (3) 228.•6; 328:19; 334:9 Relative (1) 121:15 relative (1) 121:12 relevance (1) 269:7 relevant (19] 26:14; 28:25; 93:12, 19; 108:21; 109:8; 127:9, 13, 15, 18; 204:5, 6, 7, 24; 208:5; 230:.St 306:2, 16; 316:3 remain (1) 114:20 remaining (1] 70:2 Remember (5] 24:6; 227.-3; 236:7; 243:1; 336:9 remember (84] 9:25; 24:2, 7, 9, 22; 23:10,• 33:13; 34:2, 19; 3J:2, 3, 4, 15, 25, 36:4, 16; 37:3, 5, 19, 22; 42:25; 66:20; 69:6; 72:2; 74:1; 76:18; 78:19; 89:15; 117.•13; 119:1; 132:20,• 165:23; 167.•7,18; 168:4; 171:13t 176:8, 9; 187.•161 201:10,• 207:17; 213:24; 215:1; 217:4; 218:6; 224:8, 11, 13, 18; 225:15;232:22;236:25; 239:19; 241:6; 242:20; 245:20; 246:24; 262:20; 265:7: 274:17, 19, 20; 277:1; 279:5; 290:4, 6, 21; 292:14; 294:9; 304:13; 305:14; 307:25; 325:15, 16, 21; 326:2, 17; 330:2; 334:24, 25; 335:18; 337:5; 341:10 remembered (5) 38:1; 325:11, 13; 326:25; 327.•2 remembering (1] 326:15 remembers (1] 201:12 renew (1) 316:16 repeat (2) 317:20, 21 repeating [1] 262:11 replacement (4) 253:20, 22; 254:3; 264:14 Report (1) 235:14 report (11] 33:19; 43:4; 83:11; 179:3; 246:25; 247.•1; 273:9; 303:14, 19, 20; 336:15 reported (6] 31:20; 43r6, 12, 19;44:1;336:21 Reporter (1) 316:19 reporter (te] 5:20; 8:20, 25; 9:6; 10:24; 11:23; 12:3,12; 37•16; 40:10; 47.•12; 133:3; 240:10; 283:17; 289:18; 308:24; 342:3; 343:16 reporting (6) 75:1 S; 169:8; 202:12; 209:15,17; 324:3 reports (9) 31:9; SS:2S; 235:13, 19, 21; 261:3, 22; 272:12, 18 reposit(on (5] 294:19r 295:1; 299:4, 13; 305:3 repositioned (1] 301:10 repositioning (6] 294:14; 298:24; 299:5, 6; 304:23; 305:7 qualitative to repositioning (415) 392-0650 , Tooker & Antz
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repossessioning (1) 299:4 represent (S) 5:25: 320:19. 20; 330:21. 24 representation (1) 8:1 represented (2) 320:16; 328:5 reproduced (11343:4 request (1) 49:9 requesting (1) 21:8 required (2) 6:23; 194:24 requirement (8) 68••6; 111:24; 114:22; 115:13; 117.•3: 119:12: 121:4: 122:20 requirements (2) 47,•24: 115:4 Research (2) 235:14; 275:20 research (116) 27••10; 54:14, 22; S7••24; S9:S.• 61:4, 7, 15, 23: 106:20,• 114:23, 24; 115:4, 6. 7; 116:23; 119:22; 177.•16; 178:22; 180:9, 14, 20, 23; 181:2. 15. 182:14, 17; 185:1: 190:19; 193:18; 196:17; 200:9; 205:3, 4; 211:18; 212:1. S. 6. 13; 222:2: 225:4; 227:12; 233:12, 16; 235:11, 18, 21; 236:1, 4, 9, 11; 237:22; 241:13, 24; 242:5. 6, 7, 9. 10, 11, 25; 243:12, 13, 13: 245:9; 247:21; 261:22; 262:13, 1S; 265:13. 16: 270:4: 271:14. 13, 16, 17, 21; 272:2, 12, 2S; 273:9, 19. 21; 274:8, 9, 16: 275:13. 14, 15, 17; 286:20; 287:1; 289:5: 290:17, 18; 302:22; 303:21; 308:13; 312:17, 22, 24; 317:3; 326:11, 12; 330:11, 13; 334:2, 3, 11, 19 researcher (1) 249:4 resolved (1) 8:12 respect (SS) 12:10: 16:20: 17.•4, 20; 18:3, 21, 25; 19: 9: 29:3: 31:7, 17, 23; 43:13; 44:9; 46:19; 49:7,• 51:18: 69:23: 78: 8: 89:17; 95:12: 9 7: 22; 118: 3; 119:6; 128:14, 21; 130:23; 131:5; 132:21, 25, 156:1 S; 157:2; 165:18. 19: 177:11: 191:23: 231:8; 238:5; 242:5; 245:3: 264:2; 267:9; 280:8; 283:10, 12; 296:8. 16, 19; 297:10; 298:25; 299:19; 304:3, 9; 307:23;318:17 respond (3) 7.•24; ?94:24; 259:22 responding (1) 316:13 response (12) 12:6, 13; 223:12; 275:12; 304: 2; 305: 22; 306:3, 8, 9. 14; 316:22; 317••S responses (1) 12:6 respotuibilities (9) 43:23, 25: 75: S; 78:14; 79:8; 86:16; 89:17,• 169:9: 286:19 responsibility (15) 44:1; 51:20: S2:S: 69:4; 75:13; 78:5: 84:14, 19: 90: 7, 8. 11, 15, 286:17; 335:22. 23 responsible (24) 43:11, 12, 1 S: 45:10, 12; 46:14: 76:24; 17:9• 12, 15: 86:21; 89:21: 156: 8, ! 0: 162: 21: 164: 6, 12; Tooker & Antz 165: 3: 286: 8, 13, 14. 21: 303:1 S. 22 rest 111266:19 restricted (1) 318:5 restrictions (1) 48:18 result (9) 86:22: 181:9: 201:3, 25. 202:6; 212:11; 213:1; 249:25; 293:21 resulu (1) 250:1 resume (4) 66:9; 73:25; 74:10,• 272:7 retail (4) 64:16; 65:8, 9. 12 retailers (1] 60:12 rethinking (1) 306:10 Return (1) 293:16 return (3)156.•6; 293:12. 17 reveal (1)16: 7 reveals (2)17.•21: 28:25 rev(ew (S)11:4; 44:7; 69:15; 193:16: 194:10 rev(ewed (3] 75:16; 192:18; 194:15 rev(sit (1)186:22 Reynolds (232) S:S, 7,• 6:15, 19: 7.•S; 9:21; 10:711; 13:23; 14:9;13:7:18:23:19:11,16, 25120:j: 21:16, 23, 2S; 22:4, 7, 8. 16, 23, 2S; 23:S, 8. 10, 11, 13, 19. 22; 24:23; 25:3, 11; 28:10, 14; 29:9, 13. 19. 23: 30:11, 14: 32: 2S; 37.•11; 40:4,7;41:19,25;42:19: 44:22; 45:6, 23, 24; 46:3, 9, 10, 14; 47:21; 50:23; 51:1; 52:21, 23; 53:8,12, 19; S4:S, 10, 11; 55:2; 56:4, 16, 20: 61:16; 62:17, 19;.63:19, 20; 64:14; 65:3; 68:10,47:79:24; 81:1, 19; 82:9; 83:78; 85:9: 92:12; 94;10, 11; 95:12; 103:18. 19; 105:24; 106:7. 10, 16; 114:17; 117:18, 24; 118:10, 12; 126:20: 127:4, S, 23; 128:14; 131:4; 132:25; 134:3; 157:14; 164:20, 25: 165:9. 11, 14, 15, 16; 166:17. 21, 23, 24; 167:20; 170:6. 20; 172:6, 10; 175:16: 178:13; 179:22; 180:6; 195:3, 10; 197:18. 19; 200:20, 24; 202:7. 10, 13, 14; 203:23; 204:7,15; 207:9, 12. 15. 22, 24; 208:12, 25: 209:4; 210:3, 5, 10, 25; 211:2, 7, 9, 25: 218:4; 219:12, 16, 23, 24; 224:4; 225:7, 9, 17, 18. 20, 22; Z26:3; 232-1; 233:5, 11; 236:24; 237:25; 239:4. 5: 241:3. 12; 244:17; 245:1, 7; 246:18, 22; 254:11, 23: 261:18; 262:4 ; 268:10; 277:20; 278:21; 279:1; 291:25; 299:3: 300:14, 22; 301:22; 303:11; 307:14, 18; 310:10, 23; 312:20; 313:1, 14; 314:25; 315:3; 317:10, 15, 23; 319:19; 321:6, 11: 322:25; 323:5, 9, 14. 15; 324:2; 327:12: 328:8; 329:4, 15. 17; 343:5 Rice (3) 6:14; 7:4; 272:9 Richland (2) 66:1, 7 i Rick•(6) 63:3: 65::0; 83:16:, 303:18, 24: 305:2 riders (1) 159:17 ridiculous (4) 60:9: 170:25: 231:7,• 284:19 riding (1) 214:2 Right (8111S:S: 18:12; 39:13; 40:5; 44:20; 46:6: 49:1: 52:17,• S3: 23; 76: 6, 16: 79:19: 83: 24; 99:17,• 100:4: 102:8; 10Q:4; 108:11; 111: 2; 114: 24: 11 S: 20,• 116:15; 117••4, 7,• 120:10, 22; 121:10; 122.9. 124:11: 128:18,• 132:13; 156:4: 159:4: 161:12, 23, 24; 162:9: 165:12; 169:11: 176:9; 190:17; 193:21; 195:10; 197:2; 198:8, 10; 206:12; 207:20: 2133; 214:4. 20; 215:4; 221:18; 237:21: 240:20; 247:10; 256:7; 238:6; 261:8; 262:19; 264:22; 265:9; 284:11; 287:16, 25: 291:9; 293:20: 295:9, 11: 298:11; 299:1; 326:9; 333:14; 335:15: 337:13, 13: 338:16; 340:3; 343:21 right (S6] 15:22; 18:1; 20:11; 21:5; 37••1S: 40:24; 43:24: 50:2; 53:22: 54:19; 66:9: 74:3: 94:21; 103:17,• 105:8: 111:10,• 114:24; 115:1; 118:3: 124:22: 128:16; 129:6; 131:17,• 162:1 S: 166:18, 25, 167:4; 169:1 S: 184:9, 12: 187.•10; 192:21, 22; 204 :4 : 210:23: 215:20; 216:11, 14; 228:16; 240:20; 249:19; 252:12, 13. 19; 276:24; 281:14; 291:22; 294:1: 301:18; 319:11; 322:18; 325:5; 331:19; 332:10; 333:24; 343:20 right-hand (3) 206:3, 21; 326: S rights (2) 21:6, 11 ring (4) 191:6: 194:19; 239:10; 336:12 risk (2) 194:18; 195:17 risks (1) 280:22 RJM (3) 206:2, 3, 5 RJMOS3 (1) 206:5 RJR (11) 65:13. 19; 68:18; 74:16; 264:17.• 266:19: 282:22: 320:5; 327:18: 332:7,• 341:7 Road (4) 5:17,• 91:10; 188:17,• 271:3 rock (1) 165:13 role (15) 10:11; 43:7, 16: 47:14: 51:22: 8S: S: 96: 9; 124:1; 202:17; 238:9. 17• 24; 239:16; 337:4 roles (3146:23; 70:11: 8S: S Roman (1) 295:17 room (10)10:25; 127:6; 129:20; 133:11: 134: 6, 9; 1 S6: 7,• 224:21. 23; 302: 9 rotated (1) 169:13 rough (11164:3 roughly (1) 77:22 routine (1) 273:1 S routinely (1) 300:15 RU (I) 187:14 Rucker (1) 241:1 rugged (2) 280:22: 281:21 Cacmova+ s. Lsc.ye.1, rule-making ;:] 194:=: • :: ruled (.) 8:S• 7 rules (9)11:21; 21:5, 7. 12: 194:24; 193:1, 12, 15; 316:1 rumors (1) 319:24 run (6) iS6:22; 163:7,• 213:12, 23; 215:21: 303:3 running (3) 32:24; 80:1, 5 Runs [1) 237:10 -$- sake (1) 228:18 sale (7) 62:14, 20: 63:1 S: 65:21; 92:16; 110:22: 12S:1S Salem(18)74:8,9,18,20; 75:10, 14,17,19, 21; 76:5, 9; 79:1; 87.•3; 90:11, 12, 17,• 324:6: 332:17 sales (26] 64:22: 65:1, S, 13, 19: 96:19; 97••24: 123:23, 25: 124:1, 11. 18. 22. 23; 125:3, 7. 10. 24; 131:1, 2; 277:7, 8: 330:1; 341:7, 8 salesperson (1)187••24 Sally (1) 238:14 sampie (6) 64:17,• 65:8; 200:11; 330:20, 21. 23 sampling (4) 64:16: 65:7, 11, 18 San(2215:6,12,17,19,23: 6:6; 7,•23: 15:4; 91:8. 10; 131:6: 172:4; 188:1 S, 17; 271:3, S: 327••1S; 340:5, 9, 10; 341:4, 10 sanctionable (1) 27••2S sanctions (2) 27:19; 28:3 Sanders (3) 62:2.1: 6j:3: 65:20 saying (11) 35:3; 38:11: 120:17,• 127••11: 195:9: 227:14; 276:20; 285:3; 312: 8; 319: 23; 326:19 schedule (1) 198:6 scheduled (2) 15:13; 333:7 school (9) 49:10, 11: 6S:2S; 66:11, 16: 130:18: 284:2 2; 328:13 schools (5) 49:13, 14; 67:3; 131:24 scientific (1) 179:8 scope (1) 97:8 screen (S)196:17,• 197:4; 198:6, 18, 21 seal (3)129:3: 133:11: 134:1, 4: 1S6:S second (18) 52:16; 119:25: 121:11: 165:8; 247:17 248:11: 254:7,• 284:3, 7; 292:16: 295:19: 296:11; 320:13; 322:1. 4, 9: 337:7,• 344:4 secondarily (3) 299:16; 300:7,• 305:8 Secondary (S)176:13, 18: 218:11, 12; 301:15 secondary (S) 173:21; 174:7, 11; 173:20: 337:21 secret (14)126:23; 133:1, 10; 134: 4: 226:13, 14; 2 2 7:18: 228: 8, 11, 13, 15; 229: 9, 15. 20 (41S) 392-0650 I+rom repossessioning to secret 51714 2141
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auxSKMM .,,oiMallon Mangini vs R.J. Reynolds secretary (2] 13:22: 15:10 secrets (t 1 133:6 section (14] 209:14; 221:16; 247:17,• 251:17; 253:14; 2S7••13; 259:15, 19, 21; 268:24; 269:12; 306:5, 19; 308:15 Sectors (1) 259:15 seek (2] 94:24; 128:16 seeking (2) 27.•19; 28:3 seeks (2) 95:10; 219:23 segment (23] 188:25; 189:2, 12, 24; 190:2; 210:2, 3; 227.•6; 232:8; 245:1; 278:2, 3, 12, 13, 20;279:1,4,7,9;312:9; 321:25; 325:4 segmentation (12) 189:3, S; 190:3; 226:18, 19, 20; 227.•3, 6; 230:24; 231:16,• 232:9; 279:5 segmented [1) 245:15 Segmenting (1] 231:19 segmenting (2) 231:18, 23 segments (11227.9 Select [1] 208:3 select (25] 93:1; 96:2; 97.•2, 5; 101:7; 103:9, 20; 105:10, 11; 106:2, 8, 16; 108:10; 178:16; 180:3; 182:4, 5, 10, 21, 23; 185:17,• 197.•1 S; 208:6; 209:1; 258:9 selected (14) 98:13; 105:6, 8, 15, 20,• 181:19, 21; 183:20; 184:7, 12; 185:8; 222:15; 258:1 S, •18 select(ng [4) 75:20; 183:1; 204:8; 221:13 selection (10) 28:24; 45:121 98:25; 102:11; 180:4, 15, 16; 181:19,• 192:4; 208:19 selections (11177.18 sell (11] 32:24; 63:24; 64:1, 3; 123:9, 15, 124:6; 242:2, 16; 327:20, 330:8 selling (4] 64:6; 96:16; 122:25; 124:9 sells (11307.•12 seminar (2] 67:19; 68:8 seminars (6) 67:3, 5, 8, 9; 68:5, 14 send (3) 67:22; 69:14 senior [22] 81:5; 84:1, 2, 3, 10,12,16,19,23;89:3,7,11, 18;90••1,5,10,14;171:23; 272:3, 13; 336:7; 343:25 sense [12] 57:6, 9; 115:191 118:23; 119:1; 121:24; 192.25, 193:9; 200:19; 248:9; 254:4 sensitive (2) 231:4, 9 sentence (5) 252:4,• 233:3; 254:7,• 287.•14; 312:2 sentences (1) 312.3 SEPARATE (23)134:11; 135:3; 136:3; 137.•3; 138:3; 139:3; 140:3;141:3; 142:3; 143:3; 144:3; 145:3; 146:3; 147:3; 148:3; 149:3; 150:3; 151:3; 152:3; 153:3; 154.•3; 1 SS:3; 156:3 separate (6) 49:2; 111:5; 133:4; 212:14; 237:12; 246:5 separately (1] 245:16 serve (31171:21; 344:25: 345:12 served (1) 8:8 sett(ng (2) 233:20; 299:19 settle [1] 292:23 seven (1)171:24 sex (2) 269:23; 270:17 shakes (6) 41:22; 195:23; 258:13; 311:15; 318:15; 331:5 shaking (1)12:9 Share 131186:25;187.•2, 4 share (80] 63:6, 9,13; 64:15, 22, 65:2, 6, 21; 7'7.•10; 98:11; 111:22, 24; 114:21, 22;115:3, 4,10,12,13;117.•2,3;119:11, 12; 121:3; 122:20; 123:14, 18, 19; 124:4, 8. 10, 21, 23; 125:23, 25; 177.•7t 183:5; 186:5, 7, 8; 187.•6, 8, 13; 242:7, 8, 24; 251:15; 255:6; 264:18; 265:1, 3, 11; 277:12, 22; 284:15; 320:21; 322:22; 323:14; 324:3; 327:14; 329:2, 5, 10, 25; 330:9, 11, 15, 16, 19; 332:1, 7, 16; 339:13, 14, 19, 20, 22 shared (2) 34:23; 288:5 shares (2] 323:10; 339.15 she'd (1) 48:24 she'U (1)17:25 ship I4) 64:4; 242:16; 327.•23 shipments (S) 63:23; 242:8, 13,1J;277.•9 shipped (1) 327•24 Shook 111239:10 Shostak (2) 239:21, 22 show (7) 27.•21; 216:23; 222:24; 261:2; 298.•6, 14; 316:25 showing (2] 193:23; 275:8 shows (4)127.•1 S; 128:4; 179:14; 256:18 sides 11112:5 sideways (1) 261:21 s(gn (2) 69:17;114:1 signitlcance (1] 191:24 signiticant (4)118:15; 173.,1; 254.•9, 13 signiticant(y (2) 7'7.•3; 170:19 s[milarities (1) 241:17 simple (1) 125:17 single (4] 54:11,16; 252:8; 286:23 sit [4)113:19; 205:131228:23; 345:6 Sitt[ng (1) 345:4 sitt[ng (1)14:7 situations (2) 214:1, 3 six (3) 73:10; 74:13; 75:23 size (4)124:7; 12S:2S; 203:7; 324:11 skate (2) 343:13, 17 skipped 111280.18 Slow (1) 240.9 slow (1) 308:24 smaller (2) 232:10; 236:12 smoke I79) 54:23; SS:2S; 56:24,25;57.•1,4,8,10,14; 60:15, 19; 61:6, 8; 71:12; Lynn Beasley - 5,'29'97 Corcor;arcs ~. :.~ -ievsC 72:14. 20; 101: 20, 22: 103:19: Someone [6) 56:9, 11: 57:13: 104••3, 7.• 105••11. 17, 19; 102:18; 187; 23; 243: 9 106:5, 6; 108:12; 112:1; 120:4. someone (451 19: 2S: 43:4: S• 18; 160:23; 179:2; 180:16; 53:13; 34:9; 56:8, 24; 57:3, 13: 183:12, 19; 184:2, 21; 196:14, 61:16; 64:3; 75:1 S; 87:11; 20, 21; 92:19; 93:1; 96:16: 97:1, 4, 19; 197:23, 24; 198:1, 3, 9, 12, 15, 98:19, 24; 99:12; 101:6, 19; 16, 17, 25; 200:22; 201:1, 6, 102:3; 103:11, 15, 25; 117••1 7; 16; 202:9, 24; 203:13, 25; 119:9; 120:17• 168:25; 169:2; 204:23; 203:11; 209:7. 20, 24; 178:21; 197:21; 198:2, 9; 231 25 7 273 22 279 17 251 209 24 ; : ; ; : : ; : : ; 289:6; 291:18, 19, 25; 298:14; 322:5 smoked (9) S7.•14; 99:6; 104:1, 3; 197:11; 209:21; 279:11; 289:1, 15 smoker (80] 56:10; S7.•18, 19; 71:13t86:1;102:7,12,13,21, 22;103:11,12,13,14,15; 104:8, 21, 22; 105:9, 10, 111:22;114:22;115:3,13; 117.•2t 119:12; 121:3; 122:20; 174:3; 176:19; 177.•2, 11, 24; 184:6,8;185:8,9,11,16; 187.•2; 191:22; 193:23; 195:19; 197:8, 12; 200:17; 204:17; 208:14; 216:1; 220;13,15; 242:8, 24;243:21, 22, 25; 244:3, 5, 6, 7; 252:3; 254:3; 257:21, 22; 239:1; 264:14; 265:11; 270:1; 277:12; 283:14; 288:12, 23; 294:4, 6; 300;14, 20; 321:12, 13 Smokers (3) 208:3; 243:19; 259:16 smokes (s) 71:13; 198:2; 220:24; 232:21 smoking (83) 57:18; 99:5; 102:15,16; 103:8; 104:2, 9, 13,18,20;105:3,7,21t120.•S, 16t178:21,24;179:4,15,19; 180:11,16; 184:4,5,9; • 185;24; 191:10, 11, 12, 13, 16, 17,18,21;192:12,23;193:23; 195:19; 196:3,16; 197:9,14, 15, 22; 198:7, 17, 20; 200:1, 3, 7, 8; 201:8, 9; 202:19; 203:9, 10; 208:15; 209:9. 18; 214:25; 217:8; 220:15; 221:3; 232:2; 235:2, 6, 7; 248:8, 10; 249:13; 2S0:1S;264:12;279:24; 288:20, 23; 291:2,13; 292:13; 312:10; 321:6; 323:11 smoother (1) 276:3 smoothness (1) 73:11 soap(7)97.3,5,6,13,17,18; 100:11 SOFF 131187:3, 4, 5 SOFP 111187.•12 soft (3)109:1; 110:17; 234:25 softer (2)115:12,13 softly (1)11:24 so(d(16)63:21;64:2,6,9,10, 11,19; 65:111124:10; 327.•14, 22; 328:5, 17, 19; 329:20 SOM I1] 186:24 Somebody (i) 290:18 somebody (S) 57.•11; 99:4; ' 172:3t 259:3; 297.•22 somehow I1] 184:4 220:3, 23; 243:5; 286:17; 287:24; 301:11; 314:11; 321:6 somewhat (1) 216:7 somewhere (2) 291:12; 303.•4 Sorry (3] 284:7; 308:25; 338:11 sorry (24) 32:1 S; S4:2S; 70:16; 78:21; 92:11; 164:14; 174:17,• 173:16; 206:6, 8; 219:2t 240:11; 246.•9; 2SS:18; 256:2; 274:14; 284.•10,• 306:6; 327.•6; 336:4, 14; 338:6, 21; 341:6 sort (13)10:4; 52:4; 70:23; 71:1; 73:2St 88:1; 109:19; 132:10,• 159:11; 214:1, 3, 19; 234:,1 SOS (1] 187:1 sound (S)191: S; 192:21, 22; 252:12. 14 sounds (7) 241:5; 260:12; 262:10, 21; 307.•20; 343:1; 345:1 Source (1) 42:17 source (6) 253:20; 265:8; 27'7.•3; 328:6, 21, 22 Southern (31341.9. 12, 23 Spanish I1) 86:24 Span(sh-speak[ng (1) 86:25 Speak (1] 310.•1S speak (t1] 9:6, 24; 11:16, 22, 24; 22:19; 56:13; 92:7; 168:14; 194:16; 219:25 speaking (5)12:16; 20:7, 10,• 114:9; 168:20 Special (1)187.•17 spec[a( (20) 84:24; 85:2, 3, 12,1S;86rS,10,15,23;87•14, 15; 88:8, 14, 16; 129:3; 330:5; 336:8, 14,15; 343:20 specia(ties (1) 67.•6 spec[tlc (12) 26:23; 31:25; 52:9; 75:7, 8; 131:4; 168:15; 171:22; 172:4; 260:11; 294.•9; 334:25 SpeciticaUy (1) 25:7 speciAcaUy [4)10:18; 25:4; 36:9; 38:1 specifics (12) 9:14, 18; 10:8, 15, 26:4; 27:12, 17,• 33:14; 109:9; 167.•2S; 226:16; 274:18 specify (4)118:7; 131:12, 13, 18 speculate (1) 323:8 speculating (3] 203:18t 204:25; 210:1 speculation (9] 19:14, 15, 58:12: 59:10,• 92:1; 180:25; 299:8; 300:24; 328:13 speech (1) 316.9 spell (2) 8:25; 47.•11 Tooker & Antz secretary to spell (415) 392-0650 !5'1-41LA aiyi 6
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BuK Sys ems nqoiicauoms 228:21; 259:5 wonder [2) 302:14; 312:15 wondering (2) 116:2; 219:15 word [5] 22:12; 72:2; 193:3; 202:13; 309:12 wording (1) 115:18 . words (3) 211:11; 217.•10; 281:18 work (55] 16:6; 17:7, 23; 26:10; 27:1 S; 28:1, 12, 15, 19; 29:1, 6; 42:5; 47.•23; 50:24; 58:21; 67:23; 69:1, 2, 11; 7S:8t 76:12; 83:19; 90:8; 109:12; 111:11, 12; 112:21; 163:14, 19; 187:24; 188:2, 3, 4; 198:6: 225:20, 23, 25, 226:1, 3. S, 8; 227:20; 228:7; 276:6; 302:17; 313:13; 314:16; 334:5, 13, 17, 21, 23; 335:6 Worked (1) 242:8 worked (16) 70:8, 11; 76:10; 78:25; 79:11, 1 S; 87:24, 25, 96:13; 162:2; 187:23; 225:21 334:14, 151336.•6; 342:1 S Working (1) 42:6 working (33) 42:1, 4, 13, 14, 21; S0:2S; 68:15; 69:6, 19; 111:12, 13; 116:10, 12; 121:25; 162:13; 163:24; 170:1, 6; 171:8; 176:6; 207:22, 24; 226:11; 233:11; 291:5; 302:11; 305:4, S; 307.•24; 317.•10; 334:24, 25, 336:1 hlangini vs R.J. Recnolds . Lynn Beaslev • .9'29/97 YAS (t) 267:20 Yasmin [1) 42:24 Yeah (24) 29:16; 45:24; 74:17,• 333:9 Young (2] 331:17, 23 young [28] 54:18, 23; 55:2, 5, 158:17,• 187:13; 192:3; 201:19; 13; 62:6; 191:7, 8; 199:2, 8, 9, 206:8; 209:1 S, 20; 215:2; 11; 244:3, 6; 250:21; j00:1; 218:9; 220:17; 223:23; 225:13; 319:7, 9; 320:9, 12, 14, 15, 264:11; 278:3; 280:19; 282:4; 331:10, 19; 332:13• 14; 291:13; 293:22t 311:20, 23 344:10,11 yeah (4)187:8; 219:8: 240:4: Younger (6] 190:14; 243:19; 295:18 259:16; 268:21, 22; 308:21 year [126) 38:19, 25, 49:24; younger (44) S3.•9; 54:7; SS:7, 66:21;68.•6174:13,15,16,17; 13; 190:13; 196:8; 210:2; 75:24; 77.•22; 89:1 S; 102:18; 243:21,25;244:4,5,11,15; 103:18; 104:6; 126:20; 127:24, 246.3. 250:1 s; 253.19, 254:9, 25, 159:1, 2, 3,17; 160.5, 12; 266:8; 267.•11, 16; 268:3, 161:17; 163: 2S: 164: 22t 6; 285:14, 22, 24,• 291:16; 166:15; 168:15; 173:17, 18; 292:17; 294:1 S, 19, 23, 2S: 176:16; 177.•2,11, 24; 178:15, 295:2, 3; 298:24; 299:13; 16; 179:22; 300:1, 19; 180:7; 181:10; 200:1, 4t 304:24; 309:2; 322:4; 333:21; 204:17; 205:1; 210:16; 211:1, 337:11 2, 3, 9, 12; 212:17; 213:3, 11; yours (2] 271:7; 318:24 214:19; 215:21; 218:14; 224:3; yourself (12) 25:8; 41:11; 233:9; 242:2, 23; 244:10, 11, 42:10; 44:24t S2:2S; 33:20; 18; 245:2, 8, 9, 10, 12, 13, 23; SS:3; 61:17 62:11; 169:18; 251:25; 252:5; 253:5; 254:2(, 223:4; 288:9 24; 255:4, 7, 13, 19, 20, 21; youth (2] 284:15; 285.1 256:4, S, 9, 11, 25; 257:3; 263:22; 264:3, 18; 265:6; 267:1, 3, S, 6, 25; zillion (1) 220:24 268:11; 269:24; 271:23, 24; 273:13; 282:24; 285:2; 292:22; 308:12; 310:12, 24; 312:9; works (7) 46:2St 54:16; 68:10t 314:6;315:11;318:1;319:4,6; 83:17; 91:13; 265:17; 286:24 321:7, 12, 19; 322:23; 323:1; world (1] 179:7 324:4; 332:16; 337:14; 342:1 wouldn't [30] 22:21; 51:16; yearly (1) 67•16 58:16; 59:2; 64:19; 90:5; 97.,3, years• (31) 9:15; 10:19; 53:21; 4; 100:16,17; 102:8, 9; 103:9; 54:23; 104:1; 103:13; 168:12, 115:2, 3; 157.•20; 158:17; 13, 179:11:181:4;199r21; 181:6, 18,• 201:4,• 209:23; 203:7; 214.•6; 218:7,• 225:14; 217: 20: 222: S: 224: 22; 233: 23: 246:23; 254:20, 22; 2SS:8; 235:4; 250:10; 295:24; 296:3; 256.4, 265.•4; 266:12; 292:14, 322: 7 23; 314:5; 321:18, 20; 323:12; wrgpped [1) 20:9 332:1, 6 wrestling (3)167.•20, 23; Yep (1) 342:19 168:21 yesterday (9) 7.•8; 8:2; 16:11, write (6)199:10; 267.•7; 19; 21:3; 186.3, 244.8. 315:6; 290:13; 313:22, 23; 314:7 346:4 writ(ng [1] 266:20 York (2) 328:18, 19 written (16) 27.•9; 32:3; 33:25; You'd (2) 258:7; 311:16 201:24,• 202:11; 205:25; you'd (9)13:1; 15:3, 14, 15, 206:13; 218:21; 265:1 S: 275:4; 67.•8; 76:8, 17; 119:19; 324:13 289:23; 299:10; 314:5, 22, 24; you'll (3)11:4: 59:17; 330:14 319:4 You've (27) 20i4; 44:13: 48:7, wrong (12)115:3; 132:5, 8; 8; 53:7; 55:11, 23; 56:4, 6: 186: 21; 249:19; 251:14; S8:2S; 60:12; 62:2,13; 74:25; 252:14; 2S5:2S; 256:1; 295:22: 99:24t 102:17; 105:13; 127.•7, 318:6; 335:25 10; 182:3, 25, 215:11; 242:19; wrongdo(ng (1] 127:24 278:7; 288:3t 290:6: 331.4 wrote (13) 28:22; 264:4; you've (46)11:7,11; 15:22; 268:4; 284:22; 28S:S; 286:18; 292:4; 299:9; 301:6; 303:20; 312:14; 313:7 .-Y- Yankelov(ch (13) 261:6; 306:22, 23; 307.•l, 2, 3, 8, 11, 14, 17, 20, 22 YAO (2)190:12, 13 31:13,18;40:6,16;41:1;48:8, 9; 52:11; 56:18; 59:7,: 75:1; 79:14; 82:5; 88:24; 94:22; 99:25; 122.24, 123:3;129:18; 133:19: 161:23; 176:20; 193:2; 20S:23t 223:1, 5, 11; 250:19; 256: 24: 260: 24: 261:10,13; 276:11: 283 :20; 291:21: 304 :10; 306:7; 311:9; 318:11; 325:21; 331:2; :'orcaaarce ~. _~.sceu wonder to z(llion (415) 39 2-0650 Tooker & Antz
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auic Sntems Appicu.oro hypothetically (4] 204:14, 21: 340:16 -I- I'd (13132:15; 176:5; 192:13; 205:16; 230:19; 239:11; 249:19; 258:18; 282:9; 284:20; 288:16; 322:10, 13 I've (66111:14; 20:21; 26:11; 44:18; 61:3, 15; 67:5, 11; 74:4; 109:11; 110:10; 114:21, 22; 115:2; 123:20, 21; 126•6,• 129:5; 133:2; 158:8, 9; 159:21; 172.•20,• 180:9,• 181:1; 183,•2, 3, 4; 184:17,• 185:13; 19S:2S; 199:3; 201:2, 19, 23, 24; 217:10; 219:13; 222:2; 223:6; 227:22; 228:7; 235:20; 236:10; 244:5; 246:9; 251:20; 261:24; 263:12, 20; 268:15; 275:6; 284:21; 288:15; 290:5; 301:8; 306:15; 307:8, 21; 311:11; 312:1; 319:1; 321:17; 334:14; 342:25 i.e. (1) 17,•11 lauco (6117:4, 15, 43:6, 7,16; 88:11 icon (3180:14; 81:2; 343:11 idea i19158:13; 60:16; 81:3; 191:8; 195:1 S; 200:11; 202:13; 203:7; 222:16,• 248:10; 249:14; 254:2; 301:3, 24; 302:1, 17; 303:7; 342:22 Ideas (11345.4 ideas (7] 302:3; 305:6, 10; 345:1, 4, 6.13 ideation i2134S:2, 3 identical (1) 315:9 identiPication (2) 52:14, 19 ident(fied (14] 22:24; 2S:S, 7; 40:17, 22, 23; 93:6; 78,12: 99:25; 121:1; 132:20; 344:7, 9; 345:8 identities [4] 265:8; 331:11, 20; 332:1 S identify (7] 5:24,• 156:18, 25, 212:21,24;213:13;319:6 identifying (1) 53:5 ignored (11313:5 II (61193:10, 12, 23; 194:3, 6, 11 Image (6) 109:19, 23; 110:11; 219:2; 282:18; 305:19 Image (72) 52:13, 19; 108:13, 19; 109:16, 18, 21; 110:21 189:22; 215:7, 8, 14, 15, 16, 24, 25; 216:2, 4; 217,•2S; 218:18,21,24;219:1,6,10, 11,16,17;220:5,8,10,12, 21, 23; 221:6, 16; 222: 7; 279:14, 20, 22, 25, 280:1, 2, 3, 7.13. 25; 281:7, 16; 282:5, 13, 16; 294:22; 295:2; 296:21; 297:21, 23, 24; 298:13, 16; 305:23 images (4) 216:20,• 220:12; 281:7; 343:10 imagination (1) 306:20 imagipative (4) 282:19; 297:16; 298:17,• 309:11 Man ini vs R.J• Reynolds imagine (4) 103:24, 25; 208:22; 247:4 impact i3) 179:15: 211:10; 285:11 impa[r (1) 13:11 Implement [3] 41:2; 4S:1S; 195:11 implementation (4) 32:13; 7'7,•13; 301:4; 302:18 implementations (1) 237••16 impkmented (1] 42:3 imply (1) 218:13 importance (2) 320.14, 24 important (22) 26:15; 28:2St 95:16; 111:7,• 132:7; 174:11; 201:8; 203:22; 209:4, 23; 210:3; 218:1 S; 220:5, 8; 221:8; 222:10; 234:13, 20; 256:21; 274:2t 296:18; 309:3 impossible (1) 212:23 Impressions (6) 17••22; 26:14, 17,• 28:21 improper (1) 283:21 improving (2) 329:2, 4 In-house [1] 27'7••20 in-market (11300:19 in-store [3] 1 S7,•24; 138:9; 339:4 Inaccurate (4) 194:12; 199:17; 200:14, 16 Inadvertent [1] 286:3 inappropriate [4] 59:21; 172:8; 185:21, 24 Inc (2] 6:16, 19 inception (2145:4; 118:14 Include (3) 33:6; 47.•18; 156:14 included (3) 82:3;110:23; 298,21 includes (2) 300:9,13 inconceivable (2) 181:7, 8 Incorporated (t) 342:12 incorporates (1) 309:6 incorrect (2) 248:23; 328.4 Increase [2] 331:17, 23 increase (14) 96:18; 97.•23; 98:11;124:18;125:3,7,10, 15, 24; 320:8, 9; 331:10; 332:13, 14 increased Ii] 184:10 increasing (1) 312.9 incredibly (2) 2SS:11; 302.9 Independence (2] 216:22, 23 Independence [4] 216:20, 25, 217••11; 295:23 independent (3) 280:21; 281.6,21 index (6) 190:8; 339:11, 12, 15,17,18 indkate (5) 112:16; 117••1 S; 200:25; 312:8; 321.8 indicates (21247,•20; 264:8 indicating (6) 38:9; 242:10; 246:8; 262:12; 263:14; 311:8 indication (3] 120:6; 198:1, 7 Individual (5) S7,•22;.198:5; 275:1; 313:6, 11 individualistic (11295:24 individuals (3) SS:18; 61:12; 62:18 Industry (t1327,•18 Lynn Beas(ev - 5/29/97 '-JKOrUKt 9v _pM-][, `: industry (1a) 48:11r 183:11, interrupt (31 92:11: 18; 185:1 15; 203 8 213:21 250 •16 , : ; , , 25; 251:2, 4, 12, 13; 260:14; Interruption ( i 1 316:19 332: 7 intervenors (416:2, 4, 6: 7:13 influence (1) 246:2 Interview (21199:20, 21 Information 111108.21 information [14218:15; 11:7• interviews (2) 265:18, introduce (1) 340:17 20 25:25; 26:1; 30:8; 31:4, 8, 13, introduced (2) 335:9; 340:25 15, 17, 20; 48:14,• 49:3, 4; introducing [1) 340:20 54:6, 10; S7,•16; 61.5. 24; 63:8, introduction [2) 335:7,• 19, 20; 64:14, 25, 65:4, 11, 16; 68:2; 81.1. 82:15; 93:3, 12, 25, 94:7, 22; 95:14, 15, 23; 96:1, 22, 23; 98:2, 3, 4, 21;107:8,10;108:8,14,16, 17, 18, 22; 109:8, 13, 22; (10:3, 5. 6, 7, 9; 111:8; 116:20; 119:12; 124:15; 126:10, 11, 14, (9, 24; 127:3, 7; 128:12, 15; 129:6; 133:2, (0, 13, 15; 172:12; 173:4; 195:2, 25; 196:5; 200:25; 202:2,4,7, 18;203:1,22,24; 204:22; 205:8; 206:10; 207:2(; 221:6, 8; 231:4, [ 3; 234:10; 249:20; 262:22; 264:13; 265:5; 272:23; 273:8, 23; 276:21; 277:7; 289:8; 291:5; 301:21; 304:9; 305:19, 20; 306: (7; 307:4, 6, 9, 12, 15; 308:11, 14; 322:25; 324:11, 13, 16; 325:15, 16; 327:13; 329:18, 19, 25; 330:2; 344:15, 16, 22 informed (11291:1J initial (2) 204:17; 208:19 lnitisDy (1) 86:8 Initlals (1] 190.18 initiates [11193:23 initiating (2) 191:11,18 (q/ury (1] 9:17 input 11] 42:11 inserted (1) 133:5 Institute (1141:3 instruct (5] 16: 7, 16; 28•6; 229:8,10 InstruMing [8] 16:24, 25, 17:19, 24; 26:10,18; 28:12, 13 instruction (1) 17,•2S intend (11344:23 intended (2] 269:16; 344:24 intending (1) 269:13 intent (1) 314:25 interact (3144:5; 189:6; 237,•13 Interacted (1j 189:11 Interacting (1)189:9 Interaction (2)164:25; 165:4 Interchangeable (3) 219:7; 280:2, 4 intercbangeably (2) 219:8; 280:J interest [11303:8 interested (21106:4; 114:8 luteriaces (1146:24 Internal (6) 45:9; 50:7, 8,12, 24; 51:7 internally (2) 45:6, 14 interpretation (2) 268:3, 4 interrogatories [t1171:21 interrogatory [2] 129:3;172:7 340:14 Invest(gating [2] 81:2; 193:1 S investigation (14156:16, 19, 21; 80:17, 24; 202:1, 6; 275:7; 283:11; 288:18; 316:12, 15, 20,317.3 invited (1167:21 involved (39) 9:11; 34:18; 35:23; 37,•3; 43:3; 44:23; 51:7, 10, 11; 70:4, 6; 75:19; 77,•17; 83:6, 9; 86:4, 22; 128:22; 1 S7,•4; 159:6, 19; 194: 20, 23; 195:2, 10, 14; 197:21; 225:21; 237:5; 287:2; 299:12, 18; 301:8, 9; 313:20; 324:20, 21, 23; 335:20 involvement (3) 69:7, 8; 86:19 irrelevant [71123: 23; 171:17; 202:21, 23; 205:9; 228:15; 315:24 Irreverence (i) 217.3 Irreverence (2) 217:2; 220:13 irreverent [2] 220:16; 298:18 Issue (10] 7••8; 8:2, 3; 18:3; 130:21; 132:24; 182:21, 25, 266:12; 290:12 issues (10) 7,•7, 20; 8:13, 17; 233:17, 18, 19; 234••9; 271:14; 335:1 item (10140:14,• 53:12; 1 S7,•20: 158:23; 161:18t 263:21; 306:5; 311:18, 24; 329:1 items (4] 133:19; 1 S8: 4, 6; 171:22 Itterman (8] 46:22, 23; 51:4, 6, 7, 16; 165:5, 6 IV (1) 295:17 -J- J.H. (2) 336:11, 12 J.T. (1) 239:12 Jack (1) 261:15 Janacek [1) 6:1 Janet (3] 5:4; 6:2, 3 January [4] 293:4; 29S:7t 303:4; 335:14 jeans (1) 220r6 Jerry (1) 240:11 Jim (11240:13 Joan 111241:7 job (9152:9; 68••6, 16; 69:12; 75:3; 77•-22; 170:4; 204:6; 233:14 Joe (99] 7••3, 7, 20; 14:8,• 32:13, 21, 23,• 33:4, 6; 34:21: 41:3, 10, 14, 17; 42:2, 6, 9; 43:5; 44•6, 9, 16, 18, 19. 23; 49:21, 22; 52:18; 53:11; 79:22, hypothetically to Joe (415) 392-0650 Tooker & Antz !514i4 a 13R A
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pleadings (:i 38:6: 39:10 Please (3) l1:2S: 12:6: 21:1 please (5) 5:24; 12:14: 21:9; 310;15; 344:13 plenty (1) 182:14 plus (9) 211:24; 212:7. 8, 9; 237:16; 257.•9, 10, 12 pm (S)130:8; 188:11: 230:16; 270:24; 310:6 point (37) JJ:11; 17.•8: 20:17: 22:1: 31:1; 3S:IS; 36:19.• 42:7: S0.•4, 11. 17; 83:10,• 86:20; 87:6; 94:11; l62:9, 11: 172:9; 188:6; 196:20; 210:3: 21 J:22; 212:7,• 244:18: 236:18r 258:14,• 259:19: 260: 2: 265:14: 271:20; 290:25; 292:16; 297.•23; 330:10; 331:7. 1S: 341:22 pointed [2) 20:5: 133:19 pointing (1) 285:6 ' points (e) l27.•22; 131:10: 252:7,• 262: J 1: 266:13: 290:13; 295:14. 20 POLAPINK (1) 6:3 Polapink (1) 6:3 policy (18) 54:13: 61:22; 255:17; 282:21; 285:3, 5, 6, 13. 21; 286:1; 312:19: 314:14, 18• 25; 315:9; 317.•2S; 318:6, 8 poll (21178:25 pool [3)159:19, 23; 166.•6 poorly (1) 343:4 population (6) 226:25: 232:2; 312:10: 320:17, 19: 331: 24 pork (4) 100:25; 101:1. 3, 7 portion (5)134:1. 2; 136:4 236:16: 318:17 portray (8) 21S:24: 216:5: 218:22: 219:18; 220:22; 282:16; 296:21; 298:19 portrayed 121189:22: 216:13 portraying (3) 220:15, 17,• 282: 6 portrays (1) 222:7 pose (1) J02:17 position (36) 16:22; 17:8: 26:11: 29:7,• 32:25; 68:24; 70: 9; 73:24; 74:1, 6. 13; 78:3, 17, 18. 19; 83:22; 84:1 • 21; 85:7. 9• 23; 86: 7• 88:2. 19. 21: 90:13, 19; 204:21, 22; 229:19; 275:11; 284:23: 287:6; 290:11. 12: 336:18 positioning (5) 77:11: 217:21; 218:16: 294:18: 295:15 positions [2) 74:4; 287.•S positive (3) 32:J4; 192:10; 302: 9 positively (1) 306:9 post-graduate (1) 66:22 poster (7) 80:20; 81:10; 82:3; 301:2, 25; 302:7. 14 potentially (1) 324:10 practical (1) 212:12 practicality (1) 8:13 preceded (2) 277•16; 292:8 predated (2) 82:16; 88:16 predating (1) 83:2 predicate (2) 211:4• 14 predict (1) 323:10 predictors (1) 179:4 prefer (1) 234:25 preference (1) 232:14 preferences (1) 235:12 Premium (1)138:4 premium (1) 158:6 preparation (13)1S:2S; 16:5. 8; 17:6, 10, 21; J8:18: 25:14; 26:13; 29:6; 31:13; 34:25; 38:17 prepare (1)18:11 prepared (8)19:11, 19; 20:3: 21:15; 22:6; 23:18; 312:22 Preparing (1) 38:22 preparing (6) 39:3: S6:1S; 156:9: 332:24: 333:2, 13 present (10) 5:24: 31:19; 37.•7; 45:4; 53:6• 118:14; 168:11; 212:25: 281.6 presentation (12) 223:20, 21: 224:1, S: 273:7; 274:1, 4,• 291:13: 319:1l, 14, 25. 324:3 presentations (5) 263:12, J3; 273:15: 274:7, 14 presented (2) 274;15: 291:14 presenting (2)195:3; 224:4 Presently (1) 22:1 presently (3) 80:25: 223:6: 284:25 President (1) 237.•2S president [21) 41:19: 87.•19• 21;88:9,20;89:4,7,11,18; 90:5, 6, 10, 14:169:7; 171:24: 172:1; 202:17,• 237:24.• 271:11: 273:1: 336:22 presmoker (4) 58:16; 283.4. 13; 288:11 presmokers (2) 56:3: 282:23 press (21192.21 ' preteens (I) l9S:20 Pretty 11189:5 pretty (8) 227:22; 270:2, 12; 277.•21: 287:14; 293:12, 21; 318:7 previous (3) 38:14; 40:21: 21J:12 previously (1SJ 38:3, 4: 165:7,• 205:18; 222:25; 260:23; 276:10; 283:17,• 289: ! 8: 309:21; 311.6. d18:10; 331:1: 332:20: 342:4 Price (1) l10.•4 price (8) 108:20; 110:11, 23. 2S; 1 S7•11; 187:4. 13; 260:19 Pricing (2)109:6; 110:5 ' pricing (s)157:6, 7. 9. 12, 16 Primarily (1) 337:14 prittiarDy (4) 79:11. 13; 299:1 S: 300:7 Primary 111332: 6 primary (8) 175:19; 221:16, 24; 245:21; 332:3• S; 337:20; 338:1 Prime (2) 325:6 7 prime (14) 173:16• 17, 18; 174:6. 7: 176:12. 17,• 211:21; 244:17, 24; 245:21, 24 268: 23: 301:1 S principle (1) 8:13 principles (2) 93:25: 94.•4 Prior (1) 311:13 prior (81 18: 7: 38: 7: 2a4: 8. 9: 2SS:16; 237:7• 281:12: 304:22 priority (10) 174:7•• 338:20. 23; 340:5• 17. 21: 341:4, 13. 19.24 privileged (1) 231:12 probed (2) 345:1. 13 problem (3) 78:24; 192:12; 193:2 probiematic (1) 316:23 Procedure (1) 6:24 procedure (4) 65:7. 18; 133:9; 229:16 procedures (2) 904:I7, 20 proceed (2) 8:18; 129:20 proceedings (4) 91:4; 188:11; 230:16; 270:24 process (17)10:22: S7.•23; 77••17; 133:23; 161:13, 14; 162:7.• 180:11: 182:10,• 184:20: 194:21, 22: 299:19: 3019: 318:25: 330:19 produce (3) 69:13, 14; l86:19 produced (6) 5:14; 19:16, 18; 22:23; 265:24; 315:9 Product (S)109:5; 110:11, !6; 242:10.• 327.•24 product (64)16:6; 17:7, 23: 26:10; 27.•1S; 28:1, 12, 15. 19; 29:1. 7,• 69.9; 70.22. 24: 71.2. 3. 4• 72:4, 23: 73:7•• 92:20• 22• 24; 93:2; 94:20.• 99:1: 106:23, 24; 107.-1, 21; 108:10, 18: 109:3,13,23:110:1,14,16; 1l3:S; 159:9: 184:2: 205:13: 218:18.23;220:4,7,9• 18; 221:7; 222:4, 7; 242:16: 275:19, 20; 276:2. 3. 7; 287:3: 305:19, 23: 306:17 production i6) 69:2, 6. 10, 11, 12; 315:14 products (10) 71:5; 106:18: 204:8; 219:21; 275:22; 276:1. 4; 286:13, 1S. 22, proMe (1) 270:9 prof(led (1) 231:24 profitability (1) 77.9 program (2) 66:17,• 171:8 programs 12) 77.•13; 172:24 prohibit 11121.6 Project (8) l90:2S: 191:23; 333:15. 20; 337:8, 10; 338:3: 340:21 project (2)192:5; 233:7 proJects (3) 75:1; 233:4; 336:14 promoted (1) 75:2 promoting (3) 126:21; 285:1; 340:10 promotion (41) 32:17, 21; 33: 2: 76:19; 8 7.• 18: 110: 6; 129:11; 1 S7.•3, 6, 16. 21. 23• 24• 25, 158:1 • 2, 9. 10, 12; 159:12; 166:13, 14• 17,• 168:2• 2S; 169:3, 5, 12, 17• !8, 22: 170:2; 175:23; 240:18; 295:8: 302:3; 303:2, 23; 335:6: 339:4 promotional (1) 166:16 promotions (17) 79:12• 15: 106:19; 1 S9: 6, 22; 165:13. 24; 172:25; 210:1 S; 237:16; .,,,Carc.J~ " ~.x,. . 2.3:17: :93:3: :9=:6: S0_:11: 304:18: 343:23 pronounced (I) 5:2: proposal (2) 164:16: 343:15 propose (1) 340:14 proposition (1) 121:18 proprietary (1) 128:IS prospect (27)173:16• 17. 18, 25: 174:6, 7. 18; 175:10; J76:1, 2, 8. 12, l7•• 179:22; 180: 6; 211: 21: 244:18, 24; 245:21, 24; 268:23; 301:1 S• 16; 325:3, 4. 6, 7 prospects (10)173:21, 23: 174:13; 17S:S, 15. 176:23; 178:7, 14; 233:21: 245:23 prosper (2) 282:22; 284:15 protected (2)17•6; 133:13 protection (2)128:14, 16 protections (1) 129:4 protective (10) 7:10, 13: 8:12. 14; 126:25; 127.•3; 128:13: J33:14; 134:3; 231:12 protects (1)127:3 provide (14) 40:11; 47:23; 77: 24; 96:1: 98:1: 124:14; 126:10, 11; 132:19: 159:10; 173:4; 221:6; 298:1 S; 305:19 provided (15) 6:22: 11:3; 18:17, 22; 19:1. 2. 10: 20:14; 51:14; 126:14; 272:19; 304:7•• 306:16; 325:1 S. 16 provides (4) 8:15: 95:23; 98:2; 131:11 providing [2) 98:21: 223:12 provoke 11128S:S proxy (11327.25 psychographic (7) 269:18: 307:4. S. 21: 308:14; 344: 24, 25 psychological (2) 33:17•• 222:13 Public (3) S:4• 19; 342:11 public (1) 342:14 published (1) 236:5 puffed (1) 184:13 pull (2) 22:22; 220:5 pulled (8) 80:17,• 166:8: 223:7, 14; 283:6; 287:17• 18; 288:6 pulls (S) 166:21, 22; 167:6• 7• 8 purchase (8) 57:3; 92:19: 96:10; 97:16; 99:1; 175: S; 177.•3; 180:3 purchased (2) 97:3: 184:2 purchasing (7) 92:22. 24: 95:20, 21; 96:14; 97:5, 18 pure (1) 172:8 purely (1) 306:8 purpose (2) 98:19: 300:22 purposes (S) •8:16: 33:5; 91:19; 98:16: 208:7 pursue (1) 81:12 pursued (1) 82:3 Ln putting (2) 59:6; 262:17 J -Q- N QA (11287:2 F4 qualification (1) 133:17 Qualitative (t) 113:19 ~ m - - - - Tooker & Antz (41 392-0650 Frbm pleadings to Qualitative
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Errata Sheet Witness: Lynn Beasley, Volume I Case: Mangini vs R.J. Revnvlds Tabaccv C-wupany Arch vs The American Tabacco CumRa»v Date: May 29, 1997 Note: If you are adding or deleting from your testimony, please print the exact words you wish to add or delete. Specify each change with "add" or "delete" and sign this sheet. Page Line 9 .2 "BEE,{LEYw" sh ,, ould be „B .AR V" 9 12 , , "Cooper" ho " " 24 21 "Um-hmm" should be "Yes" . 32 23 , , "se11 creation" should be "celebration" 37 10 .. . "iWitness pods head.l" should be "Yes" . _ _ 39 ,. __ 6 ... .. ~, . "Um-hmm" should be "Yes" 47 17 "Urn-hmm" shou.ld be "Yes" 49 14 add "at a minimum 500 feet from" before "Junior highs . . ." 51 4 "Patty" should be "Patti" 65 6 add "by metropolitan area." after "share" 67 15 "Um-hmm" should be "Yes" 6 8 19 tr ,, y,,,.. t A t-.. u v.. .. n "Um-h 83 14 Ln "Um-hmm" should be "Yes" ~ 92 , 16 -j ~ "sale" should be "same" ~ 100 15 N "Unh-uh" should be "No" ~ 105 1 ~ "Um-hmm" should be "Yes" Witness's Signature: ~ Date: ~g97 . ~
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auK Srsmm, ..ovl,uuoro Mangini vs R.J. Rey nolds 294:14; 295:7; 296:7; 308:19, 1 testifying [9) 9:19; 10:2, 10; 20; 309:2, 3, 11:18; 20: 24; 35:1 S; 82:17,• 5; 319:5 320:5 23 322:3 11 315 17 • 316 11 ; , , : ; : , : 326:7, 11, 12, 24; 327:12; TESTL'1iO\'Y (23l 134:10; 328:2, 9; 329:1; 332:12; 333:3; 135:2; 136:2; 137:2; 138:2; 340:16, 22 139:2; 140:2; 141:2; 142:2; talks [81251:21; 263:21; 143:2; 144:2; 145:2; 146:2; 276:19; 291:17• 295:14; 147.•2; 148:2; 149:2; 150:2; 298:23; 299:25; 326:13 151:2; 152:2; 153:2; 154:2; Tape (5l 91:1; 188:8, 13; 1 SS:2; 136:2 270:21; 271:1 testimony (24] 10:1; 11:17; tape (1) 345:17 30:22; 36:12, 13; 62:25; 73:4; tapes (2) 188:6; 270:20 99:21; 107.•24; 108:3; 114:12; TAPS (7] 193:10, 12, 18, 22; 133:6; 166:1; 17'7:10, 23; 194:3, 6, 11 244:13; 2SS:24; 285:17; 297•St target (34] 161:2; 173:11, 15, 301:13; 315:18; 316:8; 346:12 174:12, 18; 175:19, 20; testing [2] 73:20; 330:14 176:13; 178:6; 181:2, 3; tests (2) 70:24t 275.24 183:23; 184:16, 18; 185:10; Thank (3) 90:23; 230:11; 204:24,• 210:6, 10; 211:8; 272:10 256:20, 21; 279:1; 299:15,19; Thanks [1] 336:10 300:6; 301:14, 19; 302:18; theirs (11114.4 321:22; 337:18, 21; 345:1, 13 themes (1] 309:6 targeted (2] 333:21; 337.•11 they'll (2) 96:2; 221.9 targeting (3] 174:25; 2S7:6t They're (8) 101:1; 105:21; 279 7 1 4 6 : 11: ; 12 :25; 219:13; 276:7t targets (4) 209:6; 211:5; 279:24; 340:16 245:22; 300:4 they're (66] 50:21; SS:2S; task (1] 301:10 57.-3; 64:2; 69:13; 96:16; 99.6, taste (24] 71:14, 15. 16, 18, 1S; 101:6; 102:4, 7, 15, 16; 19;72:1,3,18;73:6,7,8,11, 105:7, 9; 108:9; 113:251114:4; 12,14,17,20,21;110:16; 116:21;119:19;120:8,11; • 121:13;214:13,14;276:1,4 170:3; 184:9; 193.6, 7; 206:9; Teague (6) 275:2, 11; 286:5, 208:10, 19, 22; 209:2, 3, 9, 15, 6; 288:19; 318:4 17; 220:4; 222:16, 21; 223:17; team [1] 188:3 241:14; 245:13; 252:2; 254:8; teen (1) 193:23 256:16; 257:21, 22, 24; 258:1, teenage (2) 68:8, 14 teenager (6) 270:6, 7, 8, 11, 14.18 teenagers [2] 270:3, S teens [1] 195:19 telephone (6) 13:4; 243:6, 7; 265:18, 19; 277:13 telling (8] 33:1; 72:16; 98:15; 101:15; 117.•7; 132:15; 229:11; 296:25 T 1 90 25 en ( ) : ten (1) 119:24 tend [3] 246:4; 249:7, 16 tended [3] 189:14, 23, 24 tenet (1193:18 term [29133:6; SS:21, 23; 56:2, 4, 6; S7.•16; 58:3; 105:24; 218:12; 253: 22; 254:1, S; 266:1 S, 22; 268:12, 14, 20, 22, 279:19, 20; 283:4, 13; 290.•6, 8; 300:14; 325:4; 329:10, 14 terms (14] 56:14, 17, 23; 105:19; 115:2; 124:24, 25, 186:2; 188:19; 245:23; 269:17, 283:15; 288:11, 14 Tert(ary (1] 173:23 tertiary [1] 173:25 test (2] 71:5; 73:16 tested (11177.20 testifled (8) 31:3; 36:3; 79:10, 3, 4; 267:6; 282:6; 287:2; 292:20, 24; 295:7; 320:23; 324:18; 325:19; 328:2; 340:22; 342:13 they've [4] 40:22; 50:20; 184:13; 327.6 thinking [2l 25:13; 224:2 third (8l 46:18; 65:3;165:1; 277.•20; 300:11; 318:19; 338:3, 4 third-party (3) 64:24; 65:1 S; 307.•11 thought-provoking (1] 286:18 Thousands (1) 313:14 thousands (3) 313:10; 314.6, 7 three (18] 23:15; 42:25; 78:12: 81:11; 117.•1 S; 174:3, 4; 206:6, 7; 265:3; 278:5; 283:81293:10, ' 18; 326:6; 338:7; 344:7, 8 thrown (1) 199:4 Ticket (1) 166:17 ties (1] 225:22 times (8] 9: 7; 11:22t 23:1 S; 126:7,• 184:17; 293:10, 19; 311:14 dp (2) 108:25 title (13] 43:9; 74:22; 76:1; 87.•16; 208:2; 233:10, 13; 14; 88:24; 191:9; 244:8• 243:18; 246:20; 257.•13; trans 295:23 ,261: 21; 262:19; 337:4 trans testify (5) 13:12, 14; 20:23; titled (1) 235:14 trans 27.•16; 133:18 t(tle: (2) 74: 23; 267.•19 trem talks to Um-bmm (41S) 392-0630 Lynn Beasley - 5/29/97 Tobacco (77l S:S; 6:9, 11. 1S• ' 19; 9: 22; 10: 7; 13: 23; 1 S: 7,• 18: 23; 19:11, 17, 25; 20:3; 21:16, 23. 25; 22:4, 7. 8, 16, 23, 25; 23:5, 8. 13, 19, 22, 14:24; 2S:S, 11; 28:10, 14; 29:9, 13, 19, 24; 30:11, 14; 37.•11;40:4,7;41:19,25; 42:19; 44:22; 47:21; 53:19; 68:17; 72:1; 81:1; 82:9; 83:18; 164:20, 25; 165:16; 195:3; 200:20, 24; 203:23; 204:7, 15; 225:7, 10; 233:5; 237:25; 279:2; 291:25; 307:18; 310:10, 24; 312:20; 313:1; 317:10, 16; 329:15, 17 tobacco (11] 71:19; 72. 1, 3; 73:11;81:20;82:7,8;103:3; 179.9, 12; 276:3 Tom (1] 241:1 tomorrow (4) 272:7, 9; 320:20; 345:22 Tooker (1) 3:21 toothpaste (4) 96:7, 10, 13, 1S topic (S) 36:4; 41:7, 54:10; 62:11; 263:24 tossed 111216:21 total [11] 131:15; 157.•3; 161:18; 2349; 252:7; 320:22; 337.•21; 339:13, 16, 18, 19 totaUty (1] 218:23 Totally (1] 202:23 totally (S) 59.20, 171:17; 202:21; 205:9; 285:16 Totterdale (1] 240:24 tough (2) 280:23; 281:21 Tough-Man [2] 168:5, 21 tournaments (3] 159:19, 23; 166:6 towards (S) 102:10; 163:1 S; 234:6, 23; 278:5 town (3] 1S:1S, 17 track (12163:11, 15, 18, 23; 111:22, 24; 112:4; 177.•17,19; 178:4; 243:2; 307.9 tracked [1] 323:10 Tracker (6] 265:8,10,17; 27'7.•11,16, 22 tracking (12] 64:15, 23; 65:3; 7S:J4; 115.3, 205:4; 242:7,11; 265:11; 277.•12; 329:19t 330:7 Tractor (1] 167.•7 tractor (4) 166:21, 22; 167. 8 trade (1s] 126:23; 133:1, 6, 10; 134:4; 226:13,14; 227.•18; 228r7,11,13,15;229.•9,15, 19 traditional [1] 340:21 tralning (2) 67.•3; 94:19 traits (1) 295:24 tranuript (6111.2. 3, S; 12:11; 128:23; 133:11 transcripts (21133:4, 7 translate (1) 12:10 lates (1) 124:8 iations (1) 86:24 pired (3) 29:9,11,13 endous (2) 257.•3; 304:2 .orc«.:asa,s :..n:_ia.a: trend [5] 58::5: 39:5; =34:::: 250:1 S Trends (2) 271:19 trends [3) 179:9; 2.15:1; 273:22 trial [1l 11:19 tries [11219:17 trip [1] 15:13 Trone (1) 42:16 trouble (1] 12:4 truck (S] 167.-9, 10, 11, 15, 16 true (17] 25:23, 24; 35:20; 86:21; 248:7; 251:12, 13; 259:2; 279:12; 182:25; 294:5; 313:12; 318:2; 321:16; 322:8; 323:13 trust (1) 17:25 truthful [1] 11:12 truthfully 12] 13:12, 15 Tuesday (1) 62:24 Turn(ng (1) 165:8 twice [2l 288:3; 333:7 two-year (4] 66:11; 256:6, 8, 10 type (25] 9:10, 16; 25:14; 31:10; 33:18; 69:10; 76:12; 90:8; 103:5; 115:21; 121:7; 133:1; 168:1; 231:14; 241:9; 242:5, 25, 260:16; 261:21, 23; 263:2; 266:6t 272:22; 342:20 types [23122:16; 23:12; 26:19, 23; 27.•6, 16; 35:16; 58:4; 67:8; 104:11; 112:18; 114:17;116:4,9,19;119:2; 161:5;168:8; 202:8; 235:18; 249.-22; 286:9, 25 typical [1] 289:13 typo (S) 337.•1 S, 16, 19; 338:12, 1S -LT- U.S. (6) S:8t 277••24,• 339:13, 16, 18, 19 UB (1] 186:5 Uh-hub (1] 292:18 ult(mate (1) 166:25 ultra (1] 109:2 Um-bmm [128] 24:21; 31.•6; 34:13, 24; 39:6; 43:2; 44:21; 47••17; S0••22; 51:24; 52:20; 61:8; 62:4; 67.•1 St 68:19; 74:5; 80r23; 83:14; 87.•4; 94:16; 96:8; 102:20; 105:1, 23; 107••19; 109:1 S; 110.•6,• 112:10,• 119:7;131:21;174:14;196:12; 208:4; 221:12, 15, 19; 226:7; 232:17, 19; 233:1, 3; 236:17; 238:6; 243:20; 247:19; 248:13; 250:13; 251:23; 252:9, 23; 253:7, 18, 21; 254:11; 256:6; 257:14, 16; 260:3; 261:5, 7; 263:25; 264:7, 16, 19; 266:2, 10; 267:23; 268:1; 269:9, 11; 276:23; 277:6; 278:11, 15, 19; 281:15; 284:5, 13, 17; 287:12; 288:8; 291:1, 4; 293:5, 8, 11; 294:13, 16; 295:13; 296:12; 299:1; 300:3, 21; 306:21, 24; 308:17; Tooker & Antz 5~~~L4 a,L4 I D
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spend (11) 70:1: 85:11: 126:20; 12 7:23. 24. 25: 1 S7: 7 14: 163:8, 9: 171:1 spending (2] 77.•2; 1.12:25 spent (10) 69:25; 127.•16; 128:9, 11; 129:13; 156:12, IS; 1 S7.•2; 340.9. 14 spoken (3) 13:25; 14:2: 15:23 sponsor (4)160:1; 166:22. 2S: 168:19 sponsored (2)168:6,13 sponsoring (S] 158:15, 18; 167.•3, 21 sponsors (3)158:20; 1S9:St 165:14 sponsorship (2)160:2; 168:4 Sports 111157.20 sports (2)158:16,17 spot (21330.11. 13 squeeze (1) 252:22 stage (1) 162:6 stages (1) 204:18 stand (3)109:20, 25. 242:18 standing (1) 282:8 stands (2) 280:21; 281:6 Start (1) 69:10 start (2S1 12:1; 50:1; 65:24; 92: 8; 9S : 8: 111:19; J33.22., 178:21, 24; 179:1 S. 19; 214:11; 216: 3; 241:18: 247:22: 248:12, 19: 264:9, 10; 291:2, 16. 18; 292:13; 294:24; 345:22 started (23) 32:24: 33:2; 68:18; 69:22; 74:16; 79:24; 81:23: 161:15; 167:16, 18; 200:1, S: 209:18: 213:14: 214:12, 13: 229:11; 250:12; 257:17,• 275:8: 29S:S; 299:2 starter (3) 55:21: 56:1; 283:14 Starting (3)18:17,• 126:22: 338:20 starting (11) SS:2S: 162:9. 11: 179: 2: 180:16; 209:14, 20; 236:1 S; 291:19, 24; 337:8 starts (4) 284:6: 295:20; 318:20 320:11 State (2) 5:6: 7:2 state (5) S:2S; 6:20, 25; 8:24; 200:3 stated (1) 16:20 statement (29) 17:14; 21:9; 36:1: 130:15; 217.•22; 218:16, 20: 221:2. 20, 22: 222:12, 15, 248:17,• 252:10; 253:8, 12; 25 9:19, 22; 260:1 S, 16: 264: 23: 283: 3: 288:19; 292: 7; 296: 2S; 300:20; 310:10 23 statements (1) 284:18 States (2) 64:16: 82:10 states (1) 327:24 static (1] 200:11 statistic (2) 247:23; 248:14 statistically (e] 330:24 statistics (1) 258:8 status (3) 259:20: 260:4, 9 stay (10) 67:13; 68:4; 93:19: 1 S7.•10: 175:8; 258:3; 292:17, 21: 310:1: 321:4 stayed (2) 8:6; 207:17 staying (1) 14:18 step (S) 87:18: 89:10: 162:10, 18: 228:12 Sterling (2) 78:5, 6 Steuart (1) 5:22 Steve (s) 5:16.• 6:.1; 91:9; , . 188:16: 271:4 Stewart (1] 179:11 Sticking i1) 47.•18 sticking (1)113:9 stipulations (1) 8:20 stone (1)161:25 stop (4)167.-11; 2259; 268:14: 345:18 stopped (1) 268:20 store (1) 65:8 stores (s) 64:17,• 65:9, 12; 87.•1; 330:22 straigbt (4) 36:13: 37.•2r S7.•17; 113.9 strange [2197.10. 198:6 Strategic (3) 89:24,• 235:14; 271:14 strategic (42) 87•19, 21. 23; 88:3, S, 10.13: 233:16,17.18, 23. 25. 234.•1; 235:18. 21, 22: 236:1. 11; 242.9. 247.•21; 261:22: 262:1 J. 14,• 271:11. 16. 17, 21. 23. 24; 272:2, 12, 18; 273:9. 19, 21: 274:8, 9. 1S: 275:1 S: 290:16; 336:22 Strategies (1) 243:19 strategies (5) 62:7,• 76:25; 77.•10: 87.•24, 25 strategy (1) 257.•1S Street (6] 5:12, 22; 91:8; 188:15; 271:3: 342:12 street ( i ) 186:13 strength (3) 71:19, 21; 72:1 stretch (1) 280:24 P• strictly (2) 42:10; 113:9 strides (11317.25 Strike 12) 2S:j: 189:19 strike (3)118:11; 194:11: 325:1 strivin g 121 269:23: 270:16 strong (2) 71:22 strongly [1)112:17 structured (1) 69:4 stuck [1) 261:1 studied (6) 101:9: 179:11; 180:8, 13; 194:9; 243:1 S studies [p 1] 44:16t 179:3: 196:19; 199:25; 201:5; 202:12, 16: 330:•S; 344:7, 8, 14 Study (S)179:14; 191:3; 344:10. 11; 345:8 study (23)113:1l, 16; 179:14; 193:10. 16, 20; 194:11, 15. 18; 195:!$; 199:11; 209:16: 230: 24; 232:25; 235:12; 249:1, 14; 330:8: 344:25; 34S:S, 7, 13 stuff (S) 10:5: 76:1 S: 113:11; 121:7,• 202:1 stuffed (2) 343:13. 17 style (3) 187:15; 188:19, 21 styles (3] 108:20; 109:1 subcategories (3) 157:22; 158:7, 12 subdivision (1) 237:19 Subgroups (1) 231:20 subgroups (3) 226:21; 227:1; 232:10 subject (14) 12:16: 16:21; 44:14; 61:11. 14, 17.• 62:17. ' 23; 67:22; 223:8, 20, 23; 274:1: 291:14 subjects (9) 40:8. 17, 18. 22, 23. 52:22, 24,• SS:18; 70:1 S submarine (1) 213:20 subscribed (1) 307:14 subsegments (1) 231:25 subsequent (1) 214:18 substance (1) 15:2 Substantial (1) 254:18 substantial (1) 254:18 substatttialh' (1J 264:17 success (6)112:12: 123:22; 296:8, 16: 308:16, 21 successful [9] 98:10,• 112:5. 20:174:21; 2SS:12; 257.•11, 12; 310:11; 312:10 suffered (1) 265:3 suffice (1) 323:12 sufficient (1)128:14 suggest (4)171:19; 172:7: 285:10.• 315.8 suggested (7)165:24; 166:2, 7,• 228:22, 25. 314:1 S: 319:19 suggesting (2) 170:12, 13 Suite (4) Sa7: 91:10,• 188:17,• 271:5 sum (1) 15:2 summarized (1) 179:4 sumntarizing (3) 202:15; 279:11: 337.•21 Superior [1] 3:S supplemental (6) 80.9. 10, 14, 1S, 19; 81:22 supplier (4) 47.•1, 3. S. 6 suppliers (S) 46:7, 24; 47:8. 25,130.16 support (2) 338:25; 340:25 suppose i6] 126:12; 169:16; 198:4: 269:18; 270:14; 323:1 S supposedly (1) 129:6 Supreme (1) 179:6 Surgeon (1)179:3 surmising (1) 338:14 surprise (7) 310:9, 18, 20, 22; 311:3;312:2,3 surprised (1) 239:11 surrounding (1) 304:23 survey (1Z] 114:6; 115:12, 15 ; 116:19; 118: 24; 121: S. 6. 7; 193:13; 194:3, 7,• 232:24 Surveys (3) 199:20, 21; 227•13 surveys (7] 117:5. 9: 119:13; 227:24; 243:6, 7; 277:13 survive (1) 284:15 suspect (4) 96:12, 13: 267:7,• 340:22 suspended (2) 18:2; 128:21 suspicion (11 S4:S suspicions (1) 262:7 sustain (2) 266:15, 18 swear (1) 8:20 switch (44) 93:19; 96:17,• 98:9, 20; 99:5; 101:2; 102:5, 6; 119: 9: 120:14, 25: 173: 20: 174:10, 11; 175:7,• 177:4. S. 25: 185:10, 22; 209: 8: 210.1. 10; 211:1; 254: 21; 2SS: 3. 4. 7. Tooker & Antz (4 1 Sy3 92-0650 51714 2142 20. 21: :56: l. 9. 11: _57:3: 258.•5. 2S: 2S 9: S: 2 70.• 19: 292:22: 321:20: 325:18: 339:8 switched (4) 20:4; 190:4: 227.•S switcher (2)120a2; 252:8 switchers (13) 107:12: 119:6: 122: 8: 175:16; 251.9. 254: 2S; 2SS:11: 2S6:S, 24; 239:7, 11. 12.267.20 switches (13 96:16 switching (34] 20:14, 16; 80:7. 8: 92:18, 23: 93:6, 16: 94:9; 96:24; 99:11: l00:2S: 101:3: 111:1 S; 116:13, 14; 120:14; 121.9; 122:5, 21: 123:4,6.21; 124:4,16,18; 125:9, 20; 177:9, 21; 178:11: 180:5; 184:11, 24; 189:7,• 227:4; 251:1 S; 253:6; 254:17; 256:12, 13. 18: 257:3, 6, 10, 11; 258:16, 17; 259:3; 300:12: 302:21: 321:24; 339:1 switching-wise (11189:11 sworn (1) 8:22 symbol (2) 260:4, 9 symbols (1) 259:20 synopsis (1) 95:9 system (5) 64:15; 65:3; 265:11: 277.•12; 330:7 systems (1) 277.•22 -T- T-shirt (10) 175:23: 293: 7. 9. 22: 294:8: 295:8; 303:2. 7, 23; 304:3 T-shirts (2) 294:3; 304:5 table (2) 305:6. 11 takes (21 108:16; 172:23 talk (29) 13:20, 22: 14:13, 18. 24; 102:13. 14; 113:4• 20: 181:1 S; 197:4, 23: 205:4, 13: 208.•9, 20. 21; 229:24: 243: 4; 251:11; 299:2; 300:25; 301:4• 5; 310:1; 319:17,• 346:4 Ta(ked (1) 325:1 talked (21)10:21: 13:17,• 14:5: 15:6, 21; 37:25; 107:8; 114:22: 116:1: 121:3: 123:20. 21; 183:4. 6; 243:1; 252:4: 278:2; 325:2: 333:1 S; 337.6 Talking (3] 34:11; 208:23; 295:17 talking (99) 12:4; 14:3: 16:4; 30:5, 8; 33:12; 40••2: 45:2. 3• 22; 46:9; 47:3; 49:21. 25: S3: 24, 25: SS: 2S: 68: 3: 76:16: 91:23; 94:10; 96:5; 99:8: 100:17,• 108:1; 109: 3: 113 :11; 117:4; 118: 8. 9: 120:20. 21: 121:5; 161:19; 165:15; l67:4; 168:10; 181:22, 24; 182:7, 9, 16, 17; 193:7; 208:10, 19, 22; 214:13; 215:7; 219:10. 14; 242:12; 248:9; 249:1; 250:19; 254:3. 8: 258:8; 260:6, 10, 12; 262:15; 264:1. 4; 266:24; 267:5: 269:6: 277:7; 278:9. 12; 280:6; 293:3; From spend to talking
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sum sw„~ „ooptioro Mangini vs R.J. Reynolds pleadings (2) 38:6: 39:10 predictors (1) 179:4 Please [3111:25: 12:6: 21:1 prefer [1] 234.•2S please (5) 5:24: 12:14: 21:9; preference [1] 232:14 310.•15; 344:23 preferences [1) 235:12 plenty (1) 182:14 Premium i1) 158:4 plus [9) 211:24; 212:7, 8, 9; premium [1] 158:6 237:16; 257:9, 10, 12 preparation [13] 1S:2S; 16:5, pm 15)130:8; 188:11; 230:16; 8; 17:6, 10, 21; 18:18; 25:14,• 270:24; 310:6 26:13; 29:6; 31:13; 34:25; point [37] 11:11; 17••& 20.•17; 38:17 22:1; 31:1; 35:15; 36:19; 42:7; prepare (1)18:11 50:4, 11, 17; 83:10,• 86:10; prepared (8] 19;11, 19; 20:3; 87:6; 94:11; 162:9, 11; 172:9; 21:15; 22:6; 23:18; 312:22 188:6; 196:20; 210:St 211:22; Preparing (1] 38:22 212:7,• 244:18; 256:18,• 258:14; preparing 16139.3. S6:1S; 259:19; 260:2; 265:14; 271:20; 156:9; 332:24; 333:2, 13 290:25; 292:16,• 297•2S; present (10] S:24t 31:19; 330:10; 37:7 45:4; 53:6; 118:14; 331:7, 15; 341:22 168:11; 212:25; 281:6 pointed (2) 20:5; 133:19 presentation [12] 223:20, 21; pointing [1) 285:6 224:1, S; 273:7; 274:1, 4; points [8] 127.•22; 131:10,• 291:13; 319:13, 14, 25, 324:3 252:7; 262:11; 266:13; 290:13; presentations (S] 263:12, 13; 295:14, 20 273:1 S; 274:7, 14 POLAPINK (1] 6:3 presented (2) 274:15; 291:14 Polapink (1) 6:3 presenting (2)195:31224:4 policy [18) 54:13; 61:22; Presently (1) 22:1 2SS:17; 282:21; 285:3, 5, 6, presently (3) 80:25; 225.6. 13, 21; 286:1; 312:19; 314:14, 284:25 18, 25, 315:9; 317.•2S; 318:6, 8 President (1) 237.•2S poll (2)178:25 president (21] 41:19t 87••19, pool (3) 159:19, 23; 166•:6 21; 88:9, 20; 89:4, 7 11, 18; poorly (1) 343:4 90: S, 6, 10, 1.4;.169:7; 171:24; population (6) 226:25; 232:2; 172:1; 202:17; 237.•24; 271:11; 312:10,• 320:17, 19, 331:24 273:1; 336:22 pork (4) 100:25; 101:1, 3, 7 presmoker [4) S8r16; 283:4, portion [S)134:1, 2, 136•4; 13; 288:11 236:16; 318:17 presmokers [2) 56:2; 282:23 portray (8) 215:24; 216:5; press (2)192:21 218:22; 219:18; 220:22; preteens (1] 195:20 282:16; 296:21; 298:19 Pretty (1) 89:5 portrayed (2)189:22; 216:13 pretty (8) 227.•22; 270:2, 12; portraying (3) 220:13, 17; 277.•21; 287.•14; 293:12, 21; 282:6 318:7 portrays [1) 222:7 previous [3] 38:14; 40:21; pose(1)102:17 211:12 position [36)16:22; 17.•8; previously [1S) 38:3, 4; 165:7; 26:11; 29:7; 32:23; 68:24; 205:18; 222:251260:23; 70:9; 73:24; 74:1, 6, 13; 78:3, 276:10; 283:17; 289:18; 17, 18, 19; 83:22; 84:1, 21; 309:21; 311:6; 318:10; 331:1; 8S: 7, 9, 23, 86:7t 88:2,19, 21; 332:20; 342:4 90:13, 19; 204:21, 22; 229:19; Price (1)110:4 275:11; 284:23; 287.•6; 290:11, price [8] 108:20; 110:11, 23, 12; 336:18 25, 1 S7.•11; 187:4, 13; 260:19 positioning [S] 7'7.•11; 217.•21; Pr(cing (2) 109:6; 110:5 218:16; 294:18; 295:15 pricing (S)157.•6, 7, 9, 12, 16 positions (2] 74:4; 287:5 Primarily (11337.14 positive [3] 32:14; 192:10; primarily [4] 7D:11,15; 302: 9 299:1 S; 300:7 positively (1) 306:9 Primary (11332.6 post-graduate [1] 66:22 primary (8)175:19; 221:16, poster (7) 80:20; 81:10; 82:3; 24; 245:21; 332:3, St 337••20; 301:2, 25, 302:7, 14 338:1 potentially [1] 324:10 Prime (2) 325.•6, 7 practical [1) 212:12 prime (14)173:16, 17,18; practicality (1] 8:13 174:6, 7; 176:12, 17t 211:21; preceded (2] 277:16; 292:8 244:17, 24; 245:21, 24; predated (2) 82:16; 88:16 268.23, 301:15 predating (1) 83:2 , principle (1) 8.413 predicate (2) 211:4, 14 principles (2) 93:25; 94:4 predict [1] 323:10 Prior (1) 311:13 Tooker & Antz Lvnn Beasley - 31:9,97 prior [8) 18:7; 38:7; 244:8. 9: 255:16: 257.•7•• 281:12; 304:22 priority (10) 174:7,• 338:20, 23; 340:5, 17, 21; 341:4, 13, 19.24 privileged (1) 231:12 probed 12) 345:1, 13 problem (3) 78:24; 192:12; 193:2 problematic [1] 316:23 Procedure (1) 6:24 procedure (4) 65:7, 18; 133:9; 229:16 procedures (2j 304:17, 20 proceed (2) 8:18; 129:20 proceedings (4) 91:4; 188:11; 230:16; 270:24 process (17)10:22; S7.•23; 7'7:17; 133:23; 161:13, 14; 162:7; 180:11;182:10:184:20; 194:21, 22; 299.19, 301:9; 318:25; 330:19 produce (3) 69:13, 14; 186:19 produced (6) 5:14; 19:16, 18; 22:23; 26J:24; 315:9 Product (S)109:3; 110:11,16; 242.10, 327.•24 product (64] 16.•6; 17.•7, 23; 26:10; 27••1S; 28:1,12, 15, 19, 29:1, 7; 69:9; 70:22, 24; 71:2, 3, 4; 72:4, 25, 73:7; 92.20, 22, 24; 93:2; 94:20; 99••1; 106:23, 24; 107.-1, 21; 108.10, 18, 109:3,13,23;110r1,14,16: 113:5; 139:9; 184:2; 205:13: 218:18, 23; 220:4, 7, 9, 18; 221:7; 222:4, 7; 242:16; 275:19, 20; 276:2, 3, 7; 287:3; 305:19, 23; 306t17 production [6) 69:2, 6, 10, 11, 12: 315:14 products 110) 71:3; 106:18; 204:8; 219:21; 275:22; 276:1, 4t 286:13,15, 22 profile [11270.1 profiled (1) 231:24 protltabWty (1) 77:9 program (2] 66:17; 171:8 programs (2) 77••13; 172:24 prohibit (1) 21:6 Project (8)190:25;191:23: 333:1 S, 20; 337.•8,10: 338:3; 340:21 project [2)192:5; 233:7 projects (3) 75:1; 233:4; 336:14 - promoted (1175.2 promoting (3)126:21; 285:1; 340:10 promotion (41) 32:17, 21: 33:2; 76:19; 87•18; 110:6; 129:11; 157:3,6,16,21,23, 24,2S;1S8:1,2,9,10,12t 1 S9••12; 166:13,14,17; 168:2, 23;169:3,5,12,17,18,22; 170:2; 175:23; 240:18; 295:8; I 302:3; 303:2, 23; 335:6; 339:4 promotional [1] 166:16 promotions (17) 7g:12, 1S; 106:19;1 S9.•6, 22; 165:13, 24: 172:2St 210:15; 237.•16; Carcaorce =•t3:17: :93:3: :94:0: 304:18: 343:33 j pronounced [1] 5:22 proposal [2) 164:16; 343:15 propose [1] 340:14 proposition (1) 121:18 proprietary (1) 128:15 prospect [271173:16, 17, 18, 25; 174:6, 7 18; 175:10; 176:1, 2, 8, 12, 17179:22; 180:6; 211:21; 244:18, 24; 245:21, 24,• 268:23; 301:1 S, 16; 325:3, 4, 6, 7 prospects (10] 173:21, 23; 174:13t 17S:S, 15. 176:23; 178:714; 233:21; 245:23 prosper (2) 282:22; 284:15 protected (2)17.•6; 133:13 protection (2) 128:14, 16 protections (1] 129:4 protective (10) 7.•10, 13; 8:12, 14,• 126:2Sr 127.•3; 128:13; 133:14; 134:3; 231:12 protects (1)127.•3 provide (14] 40:11; 47:23; 77.•24; 96:1; 98:1; 124:14; 126:10, 11; 132:19,• 159:10; 173:4; 221:6; 298:1 S; 305:19 provided (13) 6:22111:3; 18:17,22;19:1,2,10,•20:14; 31:14; 126:14; 272:19; 304:7; 306:16; 325:15, 16 provides (4) 8:15; 95:23: 98:2: 131:11 providing [2) 98:21; 223:12 provoke (1) 285:5 proxy (1) 327:25 psychographic (7) 269:18; 307.•4, 5, 21; 308.•14; 344:24, 25 psychological (2) 33:17; 222:13 Public (3) 5:4, 19; 342:11 public (11342:14 published [I] 236:5 puffed [1] 184:13 pull (2) 22:22; 220:5 pulled (8) 80:17t 166:8; 223:7, 14; 283:6; 287.•17, 18; 288:6 pulls [S)166:21, 22; 167:6, 7, 8 purchase (8) S7.•3; 92:19; 96:10; 97.-16; 99:1; 17S:S; 177.-3; 180:3 purchased (2) 97.•3; 184:2 purchasing (7) 92:22, 24; 95:20, 21; 96:14; 97:5, 18 pure [1] 172:8 purely [1) 306:8 . purpose (2) 98:19; 300:22 purposes (S) 8:16; 33:5; 91:19; 98:161208:7 pursue (1) 81:12 pursued [1] 82:3 putting (2) S9.•6; 262:17 QA (1) 287:2 qualitication [1)133:17 Qualitative (I)113:19 (415) 392-0650 From pleadings to Qualitative 5r44 a1ynp
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318::1: 319:3: 320:4• 7, 10; 322:20. 24; 323:24; 324:5. 7. 9: 327:4. 11. 16; 329:3: 331:8. 16. 18; 332:18; 333:17; 334:2, 4; 336:5: 337:1; 338:22; 340:7; 342:5, 21; 343:9 um-(unm (3)12:11; 78:10; 295:18 um-hmms (1)12:8 unaware (1) 303:1 uncover (1) 234:13 undated 111289.24 underage 19155.12. 183:5; 251:7,•3/4:17: 317•4. •318:7; 323:10, 13, 14 underdeveloped (2) 253:3; 264:17 underscores (1) 316:10 understand (29)11:14,17: 12:14; 13:7; 14:16; 22:12; 35:10; 9S:S; 109:11; 110:20,• 129:19; 131:12; 133:8; 182:13; 192:18.• 194:25; 195:9; 20S:S; 219:15; 220:11; 221:1; 232:12; 236:10; 264:1j: 282:5; 294:2; 326:11; 3j6:10; 340:8 understanding (11)16:13; 35:19; 40:21; 45:20; 94:1; 124.•24; 131:18; 210:11; 221:21; 228:2; 230: 6 undo (1)127.•2S undue (1) 246:2 unfairly (2) 284:25; 318:5 Unb-uh (3) 100:15; 240:25; 254:6 unh-ub (I) 19S:S unh-uhs (I) 12:8 unilaterally (118:10 unique (6] 93:12, 18: 280:15: 281:11: 306:2. 16 unit (51187.20. 21, 23, 25, 188:2 United (2) 64:16: 82:10 units (2) 242:1, 3 University (2) 66:7, 12 university (1) 66:8 unjust (1) 210:12 unpleasant (1) 288:20 unreasonable (1) 17.•9 update (2) 216:1 updated (3) 162:15, 17,• 216:2 uphold (1) 47:24 upper (1) 224:1j upscale (2) 260:13, 18 Upward (1) 270:16 upward (1) 269:23 usage (I] 220:14 useful (1) 202:19 User (1) 280:2 user (24198:7, 25; 99:1: 100:20; 120: 9, 11, 17, 20, 21; 186:9: 215:14, 17,• 221:16; 279:14, 20. 22. 24 280:7, 13, 25; 281:7• 16: 282:5 users (11) 96:24; 97:14. 1 S; 98:5, 8;99:2, 25: 100:3; 120:2, 3; 279:24 uses (1) 208:12 Usual (I1 186:7 usual (29) SS:S; 120:15, 18; Tooker & Antz 121:1 S• 16: 184: 7, 13: 185: 8• 16: 186:5; 208:9. l0,, 12, 16• 29: 209:1; 221:14; 243:2; 256:14, 1S; 257.•20, 2S; 258:10, 15, 259:8; 267.•9, Il , 16.268.6 -V- Vague (8) 25:16,• 43:21: 51:9; 72:8; 91:13, 16; 173:12; 305:17 vague (s) 95:4;112:24; 215:10; 263:4t 273:24 value (9)112:14;113:24, 25, 114.3;116:21;117.•11;119:2; 121:2,13 Values (1) 307.9 values (2) 33:15:109:24 Vantage (3] 90:16, 18, 103:2 variation (1) 301:22 varied (1)172:25 varies (3)172:20, 21: 1739 vendor (6) 30.•20, 21: 64:24: 165:1; 277.•20; 307•11 vendors (2) 46:19; 6S:1S venue (1)159:8 verbal (2112:6, 13 verify (1)112:19 versa (1) 250:4 version (4)133:12; 175:22; 315;12; 316:23 Versions (1)119:4 versions (2) 81:11; 82:2 versus (11) S:S, 7,• 19:2s; 71:8,10; 84:16; 112:2; 119:25; 212:1 S: 219:17; 267.•20 vertically (1) 327.•70, via (2) 296:8,16 • vice (19) 87.•19, 21; 88:9. 20.• 89:4, 6. 11, 18.• 90:5, 6. 10. 14: 169: 7,• 171: 23; 172:1: 202:17; 250:4; 271:11: 336:22 Viceroy (l)189:20 video (3) 91:9; 188:15: 271:3 VIDEO6RAPHER (17) 5:2; 8:19; 91:1, S: 130:1, 6. 9: 188:5, 8,12: 230:14, 17,• 270:21, 25; 310:4; 346:6• 9 Videotape (3) 5:3; 91:6: 346:9 videotape (2] 5:14, 16 videotaper (1) 9:7 videotaping (2) 6:21. 22 view (2) 7.•19: 218:18 viewable (1) 132:12 Virile (2)188:25: 278:1 virile (14)189:2, 12, 18. 24,• 190•;Z; 278:2, 3, 12. 13, 20, 25. 27'9:4. 7 9 virtually (1) 21:4 vis-a-vis (2) 127:3: 128:1 S visit (1)187••22 visits (1)187.•19 Volume (3) 247.•1S: 250:23; 327.•18 volume (11) 247;17,• 250:16; 251:4, 7; 259:6; 320:22; 328:2, 3, 9: 332:1; 339:22 volunteered (1) 289:11 VP (2) 88:23; 308:2 -w- WaIt (21 197:17,• 31 S:4 wait (1)11:25 walked (2)12:23; 13:3 wanted (16] 19:8; 20:17,• 49:19; S1:1S; 85:21;122:5; 130:11, 14; 165:21; 178:14.• 204:8, 25, 210:2: 211:23; 283:19; 315:5 Wants (21320.8. 9 wants (8) 68:2j: 232:14.• 269:18, 23. 270.2, 3; 315:19, 21 waste (1) 228:23 wa:ting (2)171:18: 229:25 ways (1) 261:24 we'd (6) 69:24,• 121:11: 276:2, 3; 303: 7.• 306:19 We'll (6) 77•23; 78:1; 94:11: 96:3:101:17: 273:11 we'Il p2)11:22;12:15,18,• 27.•18: 73.9. 129.20. 130: 20,• 134: 6: 186: 22: 230:10; 272.9. 346:4 We're (19) 49:21; 91:2, S: 96.5. 99.8. 118: 9; 188.9. 12: 230:14, 17,• 231:12; 270:22, 25. 271:25; 310:4, 7,• J24:23; 346:10 we're (26] 12:4, 1 S; 27:14, 25. 40:2: 49:24,• 53:24, 25, 73:20; 92:1 S; 114.24. 117:4: 122: 4; 134:6; 160:5: 164:21: 167.•4: 168:14: 188:5; 218:21; 231:11: 257:9; 261:1: 300:11; 340:23. 24 We've (2) 250.6. 345:19 we've (20) 64.9: 113:23; 117.•24,• 119:23; 122:16; 126:25; 128:5: 133:8. 9; 173:24; 177:20186:3; 217.•1, 16,17;218:7;229:16;311:13; j43:S weakness (1) 300:19 wear (4) 219:21, 2,5, 220:6; 222:5 wearing 171220.4. 14 week (11 ] 23:25; 24:2, 8. 10, 12; 34:11: 3S:S, 16; S6:1S; 198:22; 265:24 weeks (10) 24:1. 3, 12, 22: 34:12: 35:17,• 3 9:18, 25. 82:12: 283:9 Weren't 111167.20 weren't (25) 29:18; 30:24; 31:5, 7, 12; 34:9; 36:19: 45:10; 70:4; 83:6; 160:1 S; 176:6: 195:2, 14; 212:25; 281:5; 299:12, 18: 301:8, 9; 315:2; 317.•1 S, 22; j26:12; 343:19 West (1) 342:12 Whaley 121241:7 whatsoever (1) 316:1 wbereever (1) 64:4 Whereupon (1) 346:12 white (4) 108:25; 290:7, 10, 13 whoever (7) 190:5; 192:5: 230:9; 232:21; 264:4; 268:4: 324:2 (415) 392-0650 K•holesaler (I1 6j:6 wholesalers (81 6j•24. 25: 242:16. 17,• 277.•10: 3272:. 25, 328:18 Wide (3] 335:6, 7.13 wider (2) 333:20; 337.•10 Wides (5) 333:16, 19; 335:21 • 23.340.17 William (3) 207••3, 6 Williams 11142.24 window 131266.13. 23; 267.•2 Winebrenner (3) 239:12, 13. 14 Winston (18) 9:20; 87.•31 88:20, 23; 89:4, 10. 12. 18; 90:12, 17; 158:20, 23: 1S9:S. 22; 189:12,15: 324:4: 332:17 • Winston.Sakm (4) 7.•22; 172:3; 342:13. 14 Wisconsin (3] 66;1, 7,12 wish (1) 173:20 WITNESS (151) 10:14; 14:17•• 15:9: 19:21; 22:18; 23:9. 16: 25:1, 17; 27.4; 29:21: 30:18• 23; 34:6; 35:11,13, 24,• 36:7. 25, 39:13; 43:19, 22: 44:12; 4S:2S: 51:11; 53:16: S7.•21; 58.~6,13: 59:11: 60:10, 19; 61:22; 70:16; 72:9; 73:5; 78:23; 83:1: 91:14, 17; 93:4, 11, 23: 94:6: 95:6; 97:10; 98:1;103:23; 105:17; 107:15; 108:5; 112 :25: 114:13: 117:7: 121:21; 123:2• 11: 124:14. 20; 125:5• 19; 130:11, 14; 160:19; 163:5; 166:11; 167:14; 169:20, 25; 170:25; 173:9, 13; 175:3. 13; 177;14; 178:9; 181:1; 182:14, 19; 183:25; 184:17; 185:20: 191:20; 194:14; 199:9; 201:14; 204:12; 211:6, 16; 212:3; 215:11; 222:21; 230:12; 235:9• 11; 244:15.24; 245:6; 248:5: 249:9; 250:6, 25; 252:18; 255:25; 257:2; 263:5, 10; 269:16; 270:14;273:25; 274:11; 279:4; 282:1; 285:18; 286:12; 287:21; 293:15, 17; 296:24; 297:6, 13; 299:9: 300:25: 301:14; 303:18; 305:18: 307:3: 308:6; 310:16; 311:2; 313:16. 19; 316:2, 12, 15, 18. 20; 319:9, 16, 22; 321:16; 322:18; 324:23; 328:15; 331:13. 22: 332:5; 334:8; 336:21; 344:20; 345:12 Witness (17) 8:22; 37.•10; 41: 22: 102.23. 161:16: 195: 23; 223:25; 243:14; 253:13; 258:13; 268:9; 289:4; 311:1 S; 318:1 S: 327.•16; 331:5; 346:12 witness (22) 8:21: 17:6: 20:8, 23. 25, 26:12; 30:22; 59:20: 60: 2: 73: 4107.•24; 108: 3; 114:12: 171:19, 22; 229:1: 230:21, 24; 265:23: 31 S:S. 18: 316:14 woman ( I ) 802:6 won't (5) 12:2; 126:3: 128::3; From um-hmm to woman 51714 2143
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have much information or not. I'll leave it Up to you. (6) MS. BIXENSTINE: Well, as long as you don't (7) mention the number. (8) MR. JANECEK: I am going to mention the numbers. (9) MS. BIXENSTINE: Is it necessary? ( i 0) MR. JANECEK: It is necessary. It will only be a(11) few questions, but I'll leave it up to you. She didn't bave (12) much information in my opinion, so - (13) MS. BIXENSTINE: So you're going to re-ask her the (14t same things that you asked her yesterday? (15) MR. JANECEK: No. I'm just giving you the (16) courtesy of letting you know I'm going to mention the (17) numbers. ( t 8) MS. BIXENSTINE: Ail right. I guess we'll ask our (19) colleagues to leave the room. (20) (Ms. Ballinger and Mr. L'Orange leave the (21) conference room.) (22) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (23) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 360 (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 361 ta (THE TESTIMONY UNTIL PAGE CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 368 (2) . (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 369 (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 370 (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER' SEPARATE COVER) ge31 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Pige 72 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER'. SEPARATE COVER) Page 373 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 374 (2) (THE TESTIMONY UNTIL PAGE CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 381 (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 382 (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 383 (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 384 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 385 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 386 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 387 , (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED 397. LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) SEPARATE COVER) SEPARATE COVER) Page 36 Page 375 Page 388 c:i (THE TESTIMONY UNTIL PAGE (2) (THE TESTIIriONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) SEPARATE COVER) SEPARATE COVER) Page 363 Page 376 Page 389 (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) SEPARATE COVER) SEPARATE COVER) Page 364 Page 377 Page 390 (=) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED CON FIDENTIAL AND PLACED UNDER SEPARATE COVER) 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) 397. LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 365 Page 378 Page 391 (:) (THE TESTIMONY UNTIL PAGE' (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE 397. LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER CONF'IDENTIAAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) SEPARATE COVER) SEPARATE COVER) Page 366 Page 379 Page 392 ' (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED UNDER CONFIDENTIAL AND PLACED U!:DEP. SEPARATE COVER) SEPARATE COVER) SEPARATE COVER) Page 367 Page 380 Page 393 (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE (2) (THE TESTIMONY UNTIL PAGE 397, LIIr'E :0 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED 397, LINE 20 HAS (3) BEEN DEEMED Tooker & Antz (4! S)492-0630 Page 359 to Pake 393 51714 2150
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BSA Manginl v. R.J. Reynolds Tobacco Lynn Beasley, Vol. Q- S/30/97 x.MAx :; Page 354 (1) identification of an entity called Financial Services? (2) A. Yes. (3) Q. What is Financial Services? (4) A. It's our internal, financial department. (5) Q. What does your internal financial department do? (6) A. Well, they do a lot of things. They do accounts (7) payable. They pay the bills. They - you know, it's our (8) internal finance department. Everything a finance (9) department does. (t0) Q. Do they - I don't know what a finance department (11) does. Do they - do they work on budgets? (12) A. Sure, yes. (13) Q. What else do they do? (14) A. They might work on, you know, how,the company (15) earnings look for the year and where expenses are and cash (16) flow and that sort off thing. (17) Q. Besides working on budgets, reviewing company (18) earnings, expenses, cash flow and paying the bills, are (19) there any c.i:er things you know that the financial services (20) department does? (21) A. They might work with us on analyses of the (22) spending on a program and the return on the program and (23) budget kind of issues and analysis. (24) Q. What do you mean by analysis? (25) MS. BIXENSTINE: Objection. Vague. Page 355 (1) Go ahead. (2) THE WITNESS: Analysis of the program and the (3) results we got. (s) MR. JANECEK: Q. To determine if it's working? (5) Not working? That type of thing? (6) A. No, To determine how much we spent and what the (7) return then we may have seen from It. (8) Q. So they'd be the ones that would look at, for (9) example, how much money was spent on the Joe Camel (10) advertising campaign and how much money that campaign (11) generated for R.J. Reynolds Tobacco Company? (12) A. No. No, no. (13) Q. Then what do you mean by that? I don't follow (14) you, then. (15) A. If we did a specific promotion •program, say like (16) our - (17) Q. Go ahead. (18) A. - a coupon promotion in-store, $2 off a carton, (19) and they'd look at how much we spent and how much switching (20) was generated from that promotion, and therefore, based on (21) the switching we got what was the return on that promotion. (22) Q. And how would they know how much switching was (23) achieved by that? (24) A. Sometimes we do research. We do estimates. (25) Q. Would the financial services department do those, Page 356 (1) do that research? (2) A. No. No. (3) Q. Where would that information come from? (4) A. Marketing research. (5) Q..So marketing research would provide financial (6) services with information and financial services would run (7) the numbers, so to speak? (8) A. Right. (9) Q. They'd tell if any particular promotion or (10) execution was having an effect on sales, but not the overall (11) effect of an entire campaign? (12) A. It's not on sales. It's, again, did we generate (13) competitive switching? Did we increase brand loyalty? (14) Those are our • objectives. And we - so we back up . and say (15) how much competitive switching did this promotion generate. (16) Q. But they don't keep track of how much money was (17) generated from that competitive switching number that we (18) were just talking about? (19) A. You can't do that really, tt's - it's an (20) estimate, you know. You don't really know. (21) Q. But they can estimate that number? (22) MS. BIXENSTINE: Objection. (23) THE WITNESS: What number? (24) MR. JANECEK: Q. The amount of revenue that's (25) generated from a particular execution or promotion? Page 357 (1) A. No. They - they can - we can estimate how much (2) competitive switching the promotion generated and perhaps (3) Its effect on brand loyalty. (4) Q. And that's what financial services does? (S) A. They take the marketing - the research and then (6) they run the numbers on it. (7) Q. Now, what are the numbers? Can you describe for (8) me what the numbers are? (9) A. They might look at the percent, the percent (10) competitive switching we got and the percent of what we term (11) incremental brand loyalty. They look at how much we spent (12) and when it was spent. They look at whatever objectives we (13) set for the promotion. If they were quantified, did we (14) achieve them. (15) Q. This is all done by the financial services (16) department and not the marketing - market research (17) department? (18) A. We work together on it. (19) Q. And you said that they might look at this. Did (20) you mean to say that they do look at that? Or do you have (21) an understanding of what it is that they actually look at? (22) A. Sometimes they do and - it's really more at the (23) marketing department's or a marketing indivtdual's (24) direction. If we want their help on running financials on a (25) program, then they'll help us. Page 358 (1) Q. Now, do they also look at sales? (2) MS. BIXENSTINE: Objection. (3) THE WITNESS: What do you mean, do they look at (4) sales? (S) MR. JANECEK: Q. Well, you've listed several (6) things that they can look at. And you did not include (7) sales. (8) My question is does the financial services (9) department also look at sales? (10) A. They look at how much we ship each week. (11) Q. So they look at the number of cigarettes that are (12) shipped, but not the amount of money that Reynolds makes (13) from those cigarettes? (14) A. Certainly, the financial department keeps track of (15) how much money the company brings in, if that's what you (16) mean. (17) Q. Can you think of any other types of, in your (18) words, numbers that the financial services department would (19) look at other than what you've testified to? (20) A. That's all I recall. (21) Q. Ms. Beasley, do you remember yesterday when you (22) were testifying about how much money - your estimate of the (23) amount of money that R.J. Reynolds Tobacco Company would (24) budget on any given year for the Joe Camel advertising (25) campaign, the media placement, do you remember that range of Page 359 (1) numbers you'd given me? (2) A. Yes. (3) MR. JANECEK: Kim, I'm going to go into this. 1(4) don't know if you want to send them out, sir she didn't (S) Page 3S4 to Page 3S9 (415) 392-0650 Tooker & Antz 51-+i 4 aiLlq A
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Buic Ssm~ns Apoi.ca1wn repossessioning (1) 299.4 represent (S] 5:25; 320:19, 20; 330: 21, 24 representation (1) 8:1 represented [2] 320:16; 328:5 reproduced (1) 343:4 request [1] 49:9 requesting (1) 21:8 required [2] 6:23; 194:24 requirement [8] 68:6; 111:24; 114:22; 115:13; 117.•3; 119:12; 121:4; 122:20 requirements [2] 47.•24; 115:4 Research (2) 235:14; 275:20 research [116] 27.•10,• 54:14, 22; S7.•24; 59:5; 61: 4, 7, 15, 23; 106:20; 114:23, 24; 115:4, 6, 7; 116:23; 119:22; 177.•16; 178:22; 180:9, 14, 20, 23; 181:2, 15, 182:14, 17; 185:1; 190:19; 193:18; 196:17; 200:9; 205:3, 4; 211:18; 212:1, S, 6, 13; 222:2; 225:4; 227:12; 233:12, 16; 235:11, 18, 21; 236:1, 4, 9, 11; 237:22; 241:13, 24; 242:3, 6, 7, 9, 10, 11, 25; 243:12, 13, 15; 245:9; 247:21; 261:22; 262:13, 15; 265:13, 16; 270:4; 271:14, 15, 16, 17, 21; 272:2, 12, 25; 273:9, 19, 21; 274:8, 9, 16; 275:13, 14, 15, 17; 286:20; 287:1; 289:5; 290:17, 18; 302:22; 303:21; 308:13; 312:17, 22, 24; 317:3; 326:11, 12; 330:11, 13; 334:2, 3, 11, 19 researcher (1) 249:4 resolved (1] 8:12 respect [SS] 12:10; 16:20; 17:4,20;18:3,21,25;19:9; 29:3;31:7,17,23;43:13;44:9; 46:19; 49:7; 51:18; 69:23; 78:8; 89:17,• 95:12; 97.•22; 118:3;119:6;128:14,21; 130:23; 131:5; 132:21, 25.; 1S6:1S; 157.•2; 165:18,19; 177:11; 191:23; 231:8; 238:5; 242:5; 245:3; 264:2; 267:9; 280:8; 283:10, 12; 296:8, 16, 19; 297:10; 298:25; 299:19; 304:3, 9; 307:23; 318:17 respond (3) 7.•24; 194:24; 259:22 responding [1] 316:13 response (12] 12:6, 13; 223:12; 275:12; 304:2; 305:22; Niangini vs R.J. Reynolds _ Lynn Beasley • S/29!97 ;~rcor:ance _i.xc - 165. j; :86; 8, 13, 14, 21; Rick (6] 63:3; 65:20; 83:16; I rule-making ;:) 19j 303:15, 22 303:18• 24; 305:2 ruled i2) 8:5, 7 rest (1) 266:19 riders (1) 159:17 rules (9) 11:?1: 31:5. 7, 12; restricted (1) 318:5 ridiculous (4] 60:9; 170:25; 194: 24; 195:1, 12, 15: 316:1 restrictions (1] 48:18 231:7•• 284:19 rumors (1) 319:24 result (9] 86:22; 181:9; 201:3, rid[ng 111214:2 run [6] 156:22; 163: 7,• 213:12• 25; 202:6; 212:11; 213:1; Right [81] 1S:S; 18:12; 39:13; 23; 215:21; 303:3 249:25; 293:21 40.5; 44:20,• 46:6,• 49:1; 52:17,• running [3132:24; 80:1, 5 results 11] 250:1 53:23; 76:6, 16; 79:19; 83:24; Runs (1) 237:10 resume [4] 66:9; 73:25; 99:17; 100:4; 102:8; 104:4; 74:10; 272:7 retail (4] 64:16; 65:8, 9, 12 retailers (1) 64:12 rethinking (1) 306:10 Return (1) 293:16 return [3] 156:6; 293:12, 17 reveal (1) 16:7 reveals (2] 17.•21; 28:25 review 15111.4. 44:7; 69:1 S; 193:16; 194:10 reviewed (3) 75:16; 193:18; 194:15 revls(t [1] 186:22 Reynolds (232] S:S, 7; 6:15, 19;7:5;9:21;10:7,11;13:23; 14:9; 1 S: 7; 18:23; 19:11, 16, 25, 20:3; 21:16, 23, 25, 22:4, 7,8,16,23,25;23:5,8,10, 11, 13,19, 22; 24:23; 2S:S,11; 28:10, 14; 29:9, 13, 19, 23; 30:11, 14; 32:25; 37.•11; 40:4, 7; 41:19, 25; 42:19; 44:22; 45:6, 23, 24; 46:3, 9, 10, 14; 47:21; 50:23; 51:1; 52:21, 23; 53:8, 12, 19; S4:S, 10, 11; 55:2; 56:4, 16, 20; 61:16; 62:17, 19; 63:19, 20; .. 64:14; 65:5; 68:10, 17; 79:24; 81:1, 19; 82:9; 83:18; 85:9; 92:12; 94:10, 11; 95:12; 103:18, 19; 105:24; 106:7, 10, 16; 114:17; 117:18, 24; 118:10, 12; 126:20; 127:4, S, 23; 128:14; 131:4; 132:25; 134:3; 157:14; 164:20, 25; 163:9, 11, 14, 15. 16; 166:17, 21, 23, 24;167:20; 170:6, 20; 172:6, 10; 175:16; 178:13; 179:22; 180:6; 195:3, 10; 197:18, 19; 200:20, 24; 202:7, 10, 13, 14; 203:23; 204:7, 15; 207:9, 12, 15, 22, 24; 208:12, 25; 209:4; 210:3, S, 10, 2S; 211:2, 7, 9, 25; 218:4; 219:12, 16, 23, 24; 224:4; 225:7, 9, 17, 18, 20, 22; 226:3; 232:1; 233:5, 11; 236:24; 237:25; 239:4, 5; 241:3, 12; 244:17; 245:1, 7; 246:18, 22; 254:13, 23; 261:18; 262:4; 268:10; 277:20; 278:21; 279:1; 291c2S; 299:3; 300:14, 22; 301:22; 303:11; 307:14, 18; 310:10, 23; 312:20; 313:1, 14; 314:25; 315:3; 317:10, 15, 25; 319:19; 321:6, 11 t 322:25; 323:5, 9, 14. 15; 324:2;327:12; 328:8; 329:4, 15, 17; 343:5 Rice 13] 6:14; 7.•4; 272:9 Richland (2] 66:1, 7 108:11; 111:2; 114:24; 115:20; 116:1 St 117••4, 7; 120:10, 22; 121:10; 122:9; 124:11; 128:18; 132:13;156:4; 159:4; 161:12, 23, 24; 162:9; 165:12; 169:11; 176:9; 190:17; 193:21; 195:10; 197:2; 198:8, 10; 206:12; 207:20; 213:2; 214:4, 20; 215:4; 221:18; 237:21; 240:20; 247:10; 256:7; 258:6; 261:8; 262:19; 264:22; 265:9; 284:11; 287:16,25;291:9;293:20; 295:9,11; 298:11; 299:1; 326:9; 333:14; 33S:1S; 337:13, 1S; 338:16; 340:3; 343:21 right (56] 15:22; 18:1; 20:11; 21:5; 37.•15; 40:24; 43:24; 50:2; 53:22; 54:19; 66:9; 74:3; 94:21;103:17;105;8;111:10; 114:24; 115:1; 118:3; 124:22; 128:16;1, 29:6; 131:17; 162:1 S; 166:18, 25, 167.•4; 169:1S; 184:9. 12; 187.•10; 192:21, 22; 204:4; 210:23; 215:20; 216:11, 14; 228:16; 240:20: 249:19; 252:12, 13, 19; 276:24; 281:14; 291:22; 294:1; 301:18; 319:11; 322:18: 32S:S; 331:19; 332:10; 333:24; 343:20 right-hand (3) 206:3, 21; 326:5 rights (2) 21:6, 11 ring (4) 191:6; 194:19; 239:10,• 336:12 risk (2] 194:18; 195.17 risks [11280.22 RJM (3) 206:2, 3, 5 RJM0S3 [1] 206.5 RJR [11] 65:13,19; 68:18; 74:16; 264:17; 266:19; 282:22; 320:5; 327.•18; 332:7,• 341:7 Road (4] 5:17; 91:10;188r17; 271:5 rock (1) 165:13 role i1S] 10:11; 43:7, 16; 47.•14; 51:22; 8S:S; 96r9; 124:1; 202:17; 238:9, 17, 24; 239:16; 337.•4 roles (3) 46:23; 70:11; 8S:S Roman (1) 295:17 room (10110:25;127.•6; 129:20; 133:11; 134.•6, 9; 156:7; 224:21, 23; 302.9 rotated (1)169:13 roUgh (1) 164:3 roughly (1) 7'7.•22 routine 111273:15 routinely (1] 300:15 RU (1) 187.•14 Rucker (1) 241:1 rugged (2) 280:22; 281:21 -$- sake (1] 228:18 sale [7] 62:14, 20; 63:1 S; 6S: 21; 92:16; 110.•22; 125:1 S Salem [18) 74:8, 9, 18, 20; 75:10,14,17,19, 21; 76:5, 9; 79:1; 87:3; 90:11, 12, 17; 324.•6; 332:17 sales (26] 64:22; 63:1, S, 13, 19; 96:19; 97.•24; 123:23, 25, 124:1, 11, 18, 22, 23; 125:3, 7, 10,24;131:1,2;277.•7,8; 330:1; 341:7, 8 salesperson [1] 187:24 Sally (1) 238:14 sample (6) 64:17; 65:8; 200:11; 330:20, 21, 23 sampling (4) 64:16; 65:7, 11, 18 San (22] 5:6, 12, 17, 19, 23; 6:6; 7:23; 15:4; 91:8, 10; 131:6; 172:4; 188:15, 17; 271:3, S; 327.•1S; 340:5, 9, 10; 341:4, 10 sanctionable (1) 27:25 sanctions (2) 27.•19; 28:3 Sanders (3) 62:23; 63:3; 65:20 saying (11] 3.3.•3; 38:11; 120:17,• 127:11; 195:9; 227:14; 276:20; 285:3; 312:8; 319:23; 326:19 schedule (1] 198:6 scheduled (2] 15:13; 333:7 school (9] 49:10, 11; 65:25; 66:11, 16; 130:18; 284:22; 328:13 schools (S] 49:13, 14; 67.•3; 131:24 scientlfic i1] 179:8 scope (1) 97:8 ' screen (S] 196:17; 197.•4; 198:6,18,21 seal (S] 129:3; 133:11; 134:1, 4;1S6:S second (18152:16: 119:25; 121:11; 16Sr8; 247.•17; 248:11; 254:7; 284:3, 7; 292:16; 295:19; 296:11; 320:13; 322:1, 4, 9; 337:7; 344:4 secondarily (3) 299:16; 300:7; 305:8 Secondary [S] 176:13, 18; 218r11,12;301:15 secondary (S] 173:21: 174:7, 11; 175:20; 337:21 secret (14] 126:23; 133:1, 10; 134:4; 226:13, 14; 227.•18,• 228:8, 11, 13, 15, 229:9, 15, 20 306:3, 8, 9, 14; 316:22; 317••S , responses (1] 12:6 responsibilities (9) 43:23, 25, 7S: S; 78:14,• 79:8; 86:16; 89:17; 169:9; 286:19 responsibility (15] 44:1; 51:20; S2:S; 69:4; 75:13; 78:5; I 84:14, 19; 90:7, 8. 11,15; 286:17,• 335:22, 23 responsible (24) 43:11, 12, 15, 45:10, 12; 46:14; 76:24; 77:9, 12, 15; 86:21; 89:21; 156:8, 10; 162:21; 164:6, 12; j Tooker & Antz (415) 392-0630 From repossessioning to secret A 5i-4,LI dIL41
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2S: 80:13: 81:2. 9. 1 S: 116:1; 126:21; 127:11: 133:20. 21: 156:19: 157:2: 163:16; 172:14: 176:10; 210:20; 211:9; 212:25; 214:1;215:15:216:21,23; 217:16, 17; 219:11, 14, 17, 24; 227:19; 228:1, 9, 20; 229:1; 230:7; 237:5: 244:19; 245:3; 274:22; 278:21; 281:12, 25; 282:15: 295:25; 297:14, 25; 298:4. S, 7, 21; 301:2, 23; 304:1, 22; 305:15; 306:12, 13; 308:19, 20: 309:3, 9. 10; 341:3; 342:15. 20, 22, 24; 343:10, 11 JOHANN (2) 6:14; 346:1 Johann (2) 6:14: 27.•21 John (2) 239:13, 22 joined (10) 207.•1S: 299:14, 20, 23: 301.1. 20: 30S:S, 6,• 334:1 S, 19 joint (1) 285:8 Jones (2) 6:17,• 42:24 Jordan (31342:8, 10 Judge (1) 8:S judge (I) 11:19 JUDK (2) 206:21, 24 juice (4) 99:12, 15. 16, 17 July 121161:9. 1S June (8) 81:6; 84:1, 10: 297:14; 299:14; 335:12; 336:3, 4 Junior (1) 49:14 junior (2) 49:10; 130:17 i jury(l)11:19 ---K- l:earny (4) 5:11; 91:8: 188:14; 271:2 keep (2) 21:9; 185:24 Ken (I) 241:2 Key (1] 325:4 key (31) 42:25: 70:23: 80:3; 116:11, 25; 119:4; 17j:19; 174:12, 18; 175: S, 10. 1 S: i 76:1, 8, 23; 178:6, 14; 179:22; 180:6; 210:18; 218:6; 222:8: 233:20; 269:8; 296:1: 297:1 S; 32021: 321:21; 325:3; 332:1 kick (11 129:20 kids (2) SS:2S; S9:1S tim(14)6:17,•l4:7:18:13: 27:18; 28: 23: 37.•8, 9: 41.8. 48:16: 77:24; 101:25; 133:3; 230:8, 12 kinds (61109:7,• 112:16: 118:23: 189:13; 212:1 S; 214:3 knowing (2) 203:10: 303:11 knowledge (13) 54:2, 4, 8. 9; 63:9; 68:15; 81:25: 82:18. 20; 289:13; 312:18; 317:18, 22 Knowledgeable (1) 40:4 knowledgeable (34) 40:7,• 41: 2. 7. 10, 20; 44:8, 15: 45:17, 23: 52:12. 21. 23; 53:2• 8. 13. 16: 54:1, 17. 21; SS:12; 60:13: 61:14, 17, 2S; 62: S, 10. 20: 63: S. 14; 11 S:2S: 129:12, 15; 172:12. 14 Tooker & Antz Kool (1) 32=:8 -L- L'ORANGE (21310:2: 322:16 L' Orange (316:10: 134: 8; 156:6 LO•N-G (1) 47,•13 L-YN-N(1)9:1 L.W. (1) 238:7 label (3) S8:J• S9.•6; 116;6 Labeling (1) 58:24 labeling (1) 58:22 Labraque (1) 42:24 lacking (1) 325:24 language (2) 220:1; 316:23 LAPORTE (10) 6:5,10; 7.24: 20:6,19,18;129:13:272:6. 10; 316:7 Laporte (5) 6:S17.S,12,17., 19 Large (1) 233:19 large (2) 224:21: 330:21 largest (1)171:13 Larry (S) 88:12: 238:8: l36:16, 17 last (27)13:11; 24:2: .i!9:24; 56:12,13,15;60:14;161:17: 164: 22; 201:13: 203.6. 206: 6: 214: S; 215:1: 233: 9: 253: 3: 259:19; 260:2: 283:8; 312:2. 3: 326:6; 333:8,12: 343:2; 344:5 late (4) 79:21: 233-9; 268:19: 276:22 launch (4) 335:14: 337••7.• 340:22, 23 launched (41281.3. 335:17. 21,24 Law(1)6:18 ~ law (10) 8:10; 11: t 0: 16:13: 17.•16: 20:14.• 21:19; 27: 21; 28:1 t 239: 6 iawsuit (4) 9:11; 227.•19; 228:6, 14 lawyer (1) 288:5 la wye rs (2) 68.4. 223:13 laying (21116:16; 214:2 layman (I)121:24 Leader (1) 280:21 leader (1) 281:6 learner (3) 282:23; 283:14; 288:11 learning (1) 56:6 . leave (7)103:3: 127:6; 133:l0: 134:5, 8; 229:16; 345:23 Lees (2) 238:1,2 left-band (3) 236:16: 266:8: 323:21 Leftwich (4) 5:16; 91:9; 188:16: 271:4 legal (S)194:23; 210:12; 241:1: 315:16: 317:8 legitimate (3159:19; 127:6: 323:3 legitimately (1) 102:19 letter (4) 33:19; 33:10; SS:17,• 61:10 letters (6)190:11; 191:24; 192:4. 6; 206:6: 236:8 letting (t) 28:2 le••el (6) 65:19: 68:21: 249:21; 257:9; 273:2: 291:12 LF (13) 190.'2S: 191:1 • 23. 25. 192: 8; j3j:1 S, 20; 337:8, 10: 338:3; 340:12• 14, 21 life (3) 209:22; 217.•8; 291:11 light (5) 71:23; 109:1: 234:6. 23: 302:12 Lights (21187.•17,• 191:2 lights (2)109:2; 188:22 liked (2) 280:22; 306:16 ilikes (1) 280:22 (itnit (2)12:6; 21:1 liatited (4)106:19, 20: 160:20,• 210:16 LIIdE (231134:10; 135:2; 136.2. 1 J7•2:138: 2: 139: 2: 140:2; 141:2; 142:2: 143:2; 10.2. 145: 2: 146.2. 147.• 2; 148:2: 149:2; 150:2; 151:2; 152:2: 153:2: 154:2; 1SS:2; 156:2 line (7) 44:14: 97.•7, 23; 98:1; 171:22; 298:23; 299:25 1lttes (2) 34:1; 39:21 linked (1) 179:9 linking (1) 213:8 list (3)115:21; 131:24; 238:5: 272:24; 304:10 listed (I)131:24 listea 111310.1 literally (1) 342:1 literature (e)181:18, 24; 182:1, 17. 19, 21; 183:9; 199:1 lit(gation (2) 202:1, 6 lively (1) 213:16 tives (1) 308:22 Uoyd (1) 240:25 lobby (2)12:23; 13:4 located (3) 64:3, 8: 327.•21 location (7) 5:11: 44:16; 46:3. 10; 129:17,• 172:1 S; 262:8 locatiotu 11147.18 logistical (1)132:7 Looks (1) 263:23 looks (24)126:13: 210:3: 223:8, 9; 262:21: 267.44; 269:17 20. 21; 272:24; 273:3: 279:12, 13: 280:18; 286:17,• 290:19; 292:3, 7,• 307:16; 319:1: 324:18; 333:20; 338:16: j40:13 Lorilard (2) 6:11: 134:5 Los (10163:21: 64:1, 2. 3. 11, 19: 327.•14; 330:4, 8. 9 lost (1) 256: 24 lot (12) 10:3; 20:7,• 42:5; 54:12:59:5;74:4;172:6: 189:11; 193:21; 22S:1S; 234:6; 303:8 lots (4)108:24; 263:12; 314:1, 3 Low(1)266:18 low (1) 326:3 lower (2) 124:10; 339:18 loyal (33) 114:19, 20: 119:17,• 175:8; 184:9, 10, 21, 22. 23: 185:9: 208:13, 15. 17,• 209:2, 3, 9; 256:17, 19; 257:23, 24; 258:1, 3, 4, 25; 259:1; 292:17, 21, 24; 321:4• 13 (4ib 392-0650 lo}•alty (S0i 5::13. 19: 9.:10. l7• 21: 93:5• 1S: 9J:8: 96:1. 14, 23: 98:5, 7. 8. 17; 111::.'. 17. 19. 21: 112:4. 6: 113:9: 114;10, 21: 11S:2S: 116:12. 24; 117.1. 2. 1 S: 118:14; 119:14,16; 122:4.8,20: 123:3, 6, 20; 124:3, 15. 18: 125:9, 20.• 178:9, 10; 180:5; 184:20: 258:22:302:20 Lucky 111189:19 Lunch (1)130:8 lunch 121130:2, 4 Lynn (10) S:.f: 9:1: 18:.7: 91.2. 7,• 188:9, 14; 270:22: 271:2: 346:10 -M M.L. (1) 236:20 MacKinnon 121238.13. 14 MAD (4)186:14, 15. 20 Madison (1) 66:13 magazine (4) 44:19; 32:6: 133:21; 304:13 magazines (7) 44:17,• 52:2: 156:20; 163:7, 8.170.22 Magna (3) 78:5, 6: 83:24 mail (3) 67:20; 1S7:2S; 158:9 mailing (1) 304:10 Maintain (1) 96:23 maintain (23) 22:16, 19: 92.9. 17. 21; 93:1 S; 94:8; 96:3. 14; 98:5, 8.17. • 111:16; 123:3. S, 8; 124:3, 17; 125:8. 20: 178:9: 209:10,• 302:20 Maintained (1) 21:25 maintained (7) 19:24; 21:22, 24: 22: 7, 12; 2j: 8: 132: 6 maintaining (12) 98:6: 111:14, 18• 20; 112:6: 114:10: 116:24; 117:1, 1: 118:13; 122:8; 178:10 maintains (2) 93:5; 124:15 Major (2) 234:24; 235:1 major (S) 63:10, 16; 157:13; 214:21; 215:1 majority (2) 2S8:1S; 292:17 male (10) 33:15. 16: 176:13. 18; 216:19; 333:22: 337:12• 18.25 Man (I) 80:4 man(1)80:2 management (3) 224:13: 285:10: 314:16 manager (42) 74:7. 8, 24: 75:9; 76:3, 5. 20, 22; 77:2, 7, 8, 16, 19; 79:6; 81:5: 83:11, 21;84:1,2,4,10,13.16.18. 19. 23; 89:3. 7,• 90:2; 118:17.° 272: 4. 13. 16: 273:11, 14, 18: 305:3; 334:19; 336:7,• 344:1 Mangini (12) Ss4; 6:2. 4. 7. 18: 7:4, 9, 13, 14. 16: 8:14, 16 manufacturers (1) 101:1 manufacturing (61 186:1 S, 17,• 203: S, 21: 242: 3: 324:12 Atarch (1) 293:4 Mark (4) 5:20, 21; 7:8: 42:24 mark (2) 16:20: 37:16 From JOHA~ti'ti' tc mark 51714 2138
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BSA Mangini v. R.J. Reynolds Tobacco CONFIDENTJAL AND PLACED UNDER SEPARATE COVER) Page 394 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) I Page 395 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) ' Page 396 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) Page 397 (2) (THE TESTIMONY UNTIL PAGE 397, LINE 20 HAS (3) BEEN DEEMED CONFIDENTIAL AND PLACED UNDER SEPARATE COVER) (20) (Mr. L'Orange and Ms. Ballinger return to the (21) conference room.) (22) MS. JOHANN: Apparently, Chris -went to make a (23) phone call. (24) MS. BALLINGER: Maybe we could take five minutes (2S) until he's through. Page 398 (1) MS. B><XENSTINE: Is this a good time for a (2) mid-morning short break? (3) MR. JANECEK: Five minutes. (4) THE VIDEOGRAPHER: We're off the record at 9:37 (5) a.m. (6) (Brief recess in proceedings - 9:37 to 10:07 am.) (7) THE VIDEOGRAPHER: We're back on the record at (8) 10:06 a.m. (9) MS. BIXENSTINE: We have had a discussion off the (10) record. Mr. Hopper has asked that he be permitted to ask (11) questions at this point in the Arch case, and that is fine (12) with Reynolds. And Mr. Janecek has said he will only agree (13) to that if he has extra time. (14) It is our position that Mr. Janecek has wasted a(1S) lot of time in this case, in particular - in this (16) deposition, rather, and in particular this morning spent an (17) hour and 13 minutes asking Ms. Beasley about specific (18) spending numbers and budget numbers which we offered to (19i provide by way of interrogatory. It's - those were matters (20) not included in the deposition notice. (:1) But I have bent over backwards here, I believe, by (22) saying that we will make Ms. Beasley available for an (23) additional day, not to exceed one day, in Winston-Salem, on (24) June 17th. We will object to anything more as clearly (25) excessive, unreasonable and harassing. Page 399 (1) MR. JANECEK: Defendants have (2) designated Ms. Beasley for eight days of testimony. We (3) noticed the person most knowledgeable on - (4) MS. BIXENSTINE: We noted - (5) MR. JANECEK: Excuse me, Counsel. On eight (6) separate days. Counsel has taken the position originally (7) that they would only make her available for two days (8) regardless of the status of the deposition. That's (9) unreasonable. (10). Counsel is now taking the position that they will (11) make her available for an additional day to accommodate the (t2) schedule of co-counsel in Arch - not co-counsel, but (t3) counsel in Arch. That's unreasonable. To attempt to limit (14) Plaintiffs eight days of depositions to three days and feel (t3) that you are bending over backwards is an overstatement. (16) MS. BIXENSTINE: We have designated Ms. Beasley as (17) the most knowledgeable on eight topics. We never agreed to (18) eight days. We object to eight days as being excessive. 1(19) think we should move on now. (20) MS. LAPORTE: If I may just make a statement for (21) the People in the separate People versus Philip Morris case, (22) I do not agree that the deposition will be completed with (23) one additional day.in Winston-Salem. As far as if it is (24) going to be agreed - if the protective order may be (25) resolved as far as cross-noticing, there's no agreement Page 400 (1) there. (2) We have not yet asked any questions in the People (3) case, and we have an agreement that I will go last, being (4) the newest person in the case, and having just received (5) access to any confidential documents with the court order (6) last Friday. (7) So I'm just going to make that reservation, that (8) we're not agreeing to this. (9) MS. BIXENSTINE: And it's my position that it (10) would be fine for Ms. Laporte to ask questions today, so (11) that she does not have to go to Winston-Salem. But that's (12) between co-counsel for the People of the State of California (13) and Mangini and counsel in the People case. Okay. (14) MR. JANECEK: With respect to plaintiffs in (15) Mangini, one day is not acceptable. Since we are going to (16) be back in Winston-Salem on a different deposition, I've (17) agreed to continue Ms. Beasley's deposition to a later (cS) Lynn Beasley, Vol. II - S/30/97 xMAxi4) For the record, I date. However, we will need to go through Ms. Beasley's (19) deposition until it's completed, however long that takes. (20) MS. BIXENSTINE: Okay. Let's go. (21) MR. JANECEK: Q. Ms. Beasley. have you got (22) Exhibit 15 still there in front of you? (23) A. Yes. (24) Q. Do you see the heading Share of market (25) projections? Page 401 (1) A. Yes. (2) Q. Do you see the last sentence. where it discusses (3) TPT results? (4) A. Um-hmm. Yes. (S) Q. What are TPT results? (6) A. Total proposition test. (7) Q. What is that? (8) A. That's a test where we bring In adult smokers and (9) we expose them to advertising for a brand. And we give them (10) a - we then talk to them about their perceptions of the (11) brand and would they be likely to purchase it and would they (12) want to purchase It based on what they've seen. (13) So It's a test exposing - and then we give them (14) an opportunity to smoke It it they want to try the brand. (15) It's with adult smokers. (16) Q. Yesterday you testified that the original mindset (17) of the Joe Camel campaign was not funny. That was not a (18) characteristic that was intended to be portrayed? Is that (19) correct? (20) A. Yesterday what I said was the key characteristics (21) that we were trying to communicate was fun, clever, (22) imaginative, entertaining. (23) Q. And it did not include humor or funny? (24) A. Humorous was not one of the key characteristics. (25) Q. If I can have you turn your attention to page on Page 402 (1) the side over there 556. (2) A. Oh, these? 556. Um-hmm. 556. (3) Q. If you look down under the Recent Research (4) Results, do you see that? (S) A. Yes. (6) Q. And can you read what the - what that first (7) bullet point says, for the record. (8) A. It says: Two campaigns, humor and poster, were (9) each quantitatively tested In early October among 300 18 to (10) 49 year old full Aavor/tull flavor low tar, non-menthol, 85 (11) millimeter smokers. Results Indict.te. (12) Q. What is the humor campaign Tooker & Antz Page 393 to Page 402 (415) 392-0650 5,ql k4 a%P50R
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BSA Maa ini v. R.J. Reynolds Tobacco Lynn Beasley, Vol. U assume one.of the reasons why you have to (12),spend so much time in these meetings is because a lot of the (13) marketing process as I've kind of come to understand it (14) is - is a conceptual process? Is that correct? (15) A. The meetings aren't because of conceptual. (16) They're often meetings on where are we, what's been done, (17) what else needs to be done, what do the shipments look like, (18) what did the volume look like, how much - what's the (19) competition doing. (20) Q. I'm sure there's a functional component to it like (21) that. I guess the question really is at some point in that (22) process you have to come up with something in order to have (23) something to implement or - (24) A. An idea? (25) Q. - put into a functional process. Is that Page 419 (1) correct?; (2) MS. BIXENSTINE: Wait until he finishes the (3) question. (4) THE WITNESS: I'm sorry. I'm sorry. (5) MR. HOPPER: Q. That's okay. Is that correct? (6) A. I don't know, because - (7) Q. Well, at some point, if this glass represents the (8) function that you've described so eloquently about (9) marketing, at some point you have to have something to put (10) in there, something to do, some idea, some concept. (11) A. Right. (12) Q. Like you may have used the term yesterday (13) ideation? Was that your term or someone else's? r 14 , A. That was mine. (15) Q. Okay. That sounds like a marketing guru term to (t6) me. What is all that that goes into the process? tt'hat is (1 7)it? What's it comprised of? Concepts'' (1 Q) A. It's the positioning for the brand, the - is that (19) what you mean? The positioning for the brand, the (20) strategies for the brand, the pricing, the promotions, the (21) advertising, the packaging design, the product development? (22) Q. Well, to me that sounds more like the function of (23) marketing. (24) You come up with concepts. For example, because (25) you said you were the person on it at the time, you kind of Page 420 (1) came up with the concept of Joe Camel. Correct? (2) A. I came up with the Id,ea of taking that French (3) Camel poster and turning it (nto a campaign to celebrate (4) Camel's 7Stb birthday. (s) Q. Okay. (6) A. Yes. (7) Q. And that was probably, again, because I'm trying (8) to get for the big picture here. (9) A. Okay. (10) Q. And then we'll get more into the functional (11) aspect. But that had certain concepts attached to it. (12) correct? And just stick with me. Yes? (13) A. Concepts. Yes. (14) Q. And certain visions? There was a vision about it? (15) A. Yes. (16) Q. There was an image to it, what you wanted with it? (17) A. Yes. (18) Q. It was replete with strategies? (19) A. We had - (20) MS. BIXENSTINE: Objection. (21) THE WITNESS: We had some strategies. (22) MR. HOPPER: Q. Okay. And there was some (23) hypothesis about it, what it meant and where it was going, (24) correct? (25) A. Yes, I would say that's generally correct. Page 421 (t) Q. Because I understand, in the marketing process you (2) generate a hypothesis. Is that correct? (3) A. Generate a hypothesis? I guess I wouldn't (4) characterize It that way. (5) You generate - you know, you have a business (6) opportunity. You identify a business opportunity and then (7) you generate ideas to address that business opportunity. (8) And there's a long process of working with consumers to (9) identify what they want and - (10) Q. You talked about some of that yesterday. (il) A. Right. (12) Q. And that's where I'm kind of going with this. You (13) have a market out there made up of consumers. (14) A. Right. (15) Q. And then you look at that market and you draw (16) certain information from it through your focus groups and (17) your surveys and all those things you've identified. And (18) then you form a hypothesis about how and what you're going (19) to market to that market, correct? (20) A. I guess I wouldn't call it a hypothesis. I would (21) call it an idea. (22) Q. All right. (23) A. You develop an idea. And I - S/30/97 then you take that idea (24) to the consumer and you - XMAX,{1 (25) Q. And that's - I'm sorry. I cut you off this time. Page 422 (1) A. You take that idea to the consumer and you see if (2) you've - how they react, if you've developed the right Idea (3) or not. (4) Q. Is that what you did with Joe Camel? (5) A. Yes. (6) Q. At some point in the marketing . process, after (7) you've done all that stuff you've just described for me that (8) you've done, then you attempt to reach that market in one (9) media or another, correct? (10) A. Yes. Once you've decided on an Idea to do, then (11) you look for how to reach the consumer with communication. (12) Q. Okay. And as I understand it, at RJR, at that (13) process - excuse me, at that point in that process, that (14) takes two avenues, two basic areas of media. Advertising (IS) and promotions. Is that correct? (16) A.I- (17) Q. Oenerally, is that correct? (18) A. Advertising and promotion are two important ways. (19) Certainly - (20) Q. Hold on one second. Stick with me, because I've (21) got to do this a little bit my way here or I'm not going to (22) get it. (23) Advertising is one media that you employ to reach (24) the market, and then you have promotions tvhich are made up (25) of all these events, sports marketing, et cetera. Page 423 (1) et cetera. Correct? (2) A. That's true. Then in addition to advertising and (3) promotion you have the package, you have the name of the (4) brand, you have the design of the product. Those all (5) communicate things. Those are all also ways to communicate (6) the positioning and image and product information about the (7) brand. (8) Q. Okay. I understand. But those get put into an (9) advertising campaign or into a promotional context, correct? (10) MS. BIXENSTINE: Objection. (11) THE WITNESS: No. (12) MR. HOPPER: Q. Hold on one second. (13) What's your objection? (14) MS. BIXENSTINE: I think it misstates her (t3) testimony. (16) MR. HOPPER: Okay. Well, I'm just trying to - (17) give me a little room. I'm just trying to understand this. 4 Page 418 to Page 423 (415) 392-0650 Tooker & Antz
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•Jn it1aY aY/ •. s%..r..ceyouius .ooacco Lynn rieastey, that they're taking (13) about? (14) A. I don't know. (15) Q. Could it be the Joe Camel campaign? (16) A. I don't know. (17) Q. If you look at the last line down there, do you (18) see where it starts with the LF total proposition test? Do (19) you see that? (20) A. I don't know which one you mean. (2 t) Q. The bottom of the page, last line. (:2) A. Oh, the last line on the page? (23) Q. Right, the last bullet point that - the LF total (24) proposition? (25) A. Yes. Page 403 (1) Q. It says: However. Agency and KNT are continuing (2) to work. What is KNT? (3) A. I don't know. As - excuse me. I just read the (4) whole line. (5) Q. Sure. (6) A. It could be it's a packaging design firm, because (7) it says: However, Agency and KNT are continuing to work on (8) refining/new campaign approaches and packaging design. (9) 1 don't know that, I'm just saying because reading (10) the sentence. (11) Q. And you don't know who they would be, who KNT (12) would be, if it was a packaging design firm? (13) A. I imagine that would be their name if it's a (14) packaging design firm. (IS) Q. Oh. that might be the name instead of just (16) initials like - (17) A. It might be, I don't know. (18) Q. And the Joe Camel campaign was launched in 1988? (19) Correct? (20) A. Yes. (21) Q. And Camel Wides were part of the Joe Camel (22) campaign at some point in time? I can't remember what date (23) you testified to, but that's correct? (24) A. They were part of the Camel brand launch. They're (23) part of the Camel brand. It's a new style of Camel. Page 404 (1) And I believe It was in - you know, it was in the (2)'90s when Camel Wides were launched. (3) Q. But they were encompassed by the Joe Camel (4) advertising campaign? (S) A. They were featured in the Camel advertising (6) campaign. (7) Q. If you could turn to page 565. Do you see that (8) down on the right•hand side? (9) A. Right. I see it. Tooker & Antz (10) Q. Okay. If you can look at the very - do you see (11) at the top of that document it says Project LF? (12) A. Yes. (13) Q. And again, we're talking about Camel Wides? (14) A. I assume so, yes - ( t S) Q. You can see - (t6) A. - that's what•the document is about. (17) Q. - the last line on that document, it says: (18) Additionaily, a humorous approach is under development? (19) A. Yes. (20) Q. Does that refreshes your recollection as to (21) whether or not one of the original attributes of the Joe (22) Camel campaign was humorous? (23) A. No. (24) Q. That does not refresh your recollection? (25) A. No. No. Page 405 (1) Q. What does that mean to you? Does that have any (2) mean to you? (3) A. It sound Iike from this document - I doo't know (4) what they're taking about, but from the other page you (5) showed me just a few minutes ago, they said they had (6) something called humor and poster under development. I(7) don't know what those were, but that's what it sounds like (8) they're talking about. (9) Q. When you were creating the Joe Camel advertising (10) campaign, were you considering using a different campaign? (11) Were you developing a different campaign? (12) A. When we - other campaigns were under development (13) up until it was approved that we went with the Joe Camel (14) campaign. That's what - (15) Q. For the Joe Camel campaign? (16) A. We explored other campaign approaches up until we (17) made a decision to move ahead with the Joe Camel campaign. (18) Q. And you were involved in those discussions. (19) explorations? (20) A. Yes. (21) Q. And was there a campaign that you were aware of (22) that was the . humor campaign? (23) A. No. I don't recall this at aU. (24) Q. Isn't it likely that the documents discussing (25) Camel Wides that were immediately or virtually immediately Page 406 (I) predating the Joe Camel advertising campaign and they're (2) discussing a humorous approach would be talking about the (3) Camel campaign? (4) A. No, I'm certain that - I feel (4 l S)h192-0650 Vol. II • S/30/97 xMAX(n certain it's not. (5) Q. Certain that Joe Camel was not a humorous (6) campaign? ' (7) A. What they're talking about in this document I do (8) not believe is the Joe Camel campaign. I don't know. I(9) don't recall seeing this document. I don't know who wrote (10) it. I don't know what they mean by two campaigns, humor and (I1) poster. I don't know. (12) Q. You just don't know what they're talking about? (13) A. No, I don't. (14) MR. JANECEK: At this time we'll suspend the (15) Mangini deposition-on the proviso that counsel for (16) Defendants will make Ms. Beasley available on the 17th of (17) June in Winston•Salem. (18) MS. BIXENSTINE: That's right. (19) MR. JANECEK: And that it is still Plaintiff's (20) position that if the deposition does need to go beyond that. (21) that that leaves the following day open. (22) 1 understand counsel's position that they will (23) limit or attempt to limit the deposition to just one (2s1 additional day. And we willito the extent it's an issue, (25) brief that in cou rt. ' Page 407 (1) MS. BIXENSTINE: That's right. (2) MR. HOPPER: Counsei, off the record. (3) (Discussion off the stenographic record.) (4) MR. HOPPER: I'm ready to proceed. (5) THE VIDEOGRAPHER: We're stiil on the record. We (6) never went off the record. (7) MR. HOPPER: Well. I think we did go off the (8) record, because I don't think the - (9) MR. JANECEK: While we're off the record, I guess (10) we should figure out how to mark your deposition exhibits. (11) MR. HOPPER: Well, I was going to mark them as - (12) MR. JANECEK: We're off the record. 1 (13) THE VIDEOGRAPHER: We're off the record at 10:21 (14) a.m. (1S) (Examination of the Witness in the Arch ease (16) begins.) (17) THE VIDEOGRAPHER: We're back on the record at (18) 10:22 a.m. (19) EXAMINATION BY yfR. HOPPER (20) MR. HOPPER: Q. Ms. Beasley, my name is Randy (21) Hopper. And I'm counsel for the Plaintiffs in the Arch. et (22) a1, v. American Tobacco Company. et al, case which is (23) somewhat Page 402 to Page 407 51714 2151
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BSA (21) (221 Manginl v. R.J. Reynolds Tobacco Lynn Beasley, Vol. Q MR. HOPPER; Yes. Exactly. has a marketing (20) reporting THE WITNESS: How many direct I responsibility to Mr. Schindler? reports? . (23) MR. HOPPER: That's not an objection. That's just (24) a clarification. (25) THE WITNESS: She's helping, see? How many direct I Page 429 (1) reports?. I think around 10. (2) MR. HOPPER: Q. Are you all in the same suite of (3) offices? (4) A. No. (5) Q. Are you spread out in other buildings or other (6) parts of the country? (7) A. Yes. Oh, there are - (8) Q. I asked that as a compound question, and I(9) shouldn't have. And that's where she should have objected, (l0)but- (1 I) A. Other parts of - other buildings, yes. (12) Q. In Winston-Salem? (13) A. Right. (14) Q. Okay. Do you meet regularly as a group of senior (15) management? (16) A. Yes. (17) Q. Do you meet on a weekly basis? (18) A. Yes. (19) Q. A)I !10 of you plus Mr. Schindler? (20) A. Yes. (21) Q. Okay. What's that meeting called? (22) A. Executive committee. (23) Q. You're on the executive committee at RJR, correct? (24) A. Yes. (25) Q. Are there executive vice presidents above you that Page 430 (1) report to Mr. Schindler? (2) A. They're not above me. There are executive vice (3) presidents that report to Mr. Schindler. (a) Q. Excuse me. (5) A. I mean I don't know technically their level versus (6) mine. I don't report to them when I meant they're not above (7) me. (8) Q. I understand. Is the general counsel a part of (9) that executive . committee? (10) A. Yes. ( t 1) Q. And what's his name? Is that Dan Donohue? ~ 12) A. Chock Blixt. (13) Q. Chuck Blixt. that's right. Is he one of the 10 or (14) in addition to? (15) A. No, he's one of the executive committee. (16) Q. All right. You and Mr. Pennell have marketing, is (17) that correct, at RJR? (18) A. No. (19) Q. Is this someone else who also (21) A. Yes. (22) Q. And who would that be? (23) A. Dave lauco. (24) Q. Anyone else? (25) A. Nope. I think that's it. Page 431 (1) Q. Are the three of you all considered to be equal in (2) terms of your officerships? (3) A. Yes. (4) Q. Do you have.three distinctly different areas of (S) marketing responsibility? (6) A. Yes. (7) Q. Do they overlap? I don't mean - we'll gerto (8) this question in a minute - conceptually or practically, (9) because I'm sure they do one way or another. (10) But what's distinct about your senior (11) responsibility in marketing that's different than, say, (12) Mr. lauco or Mr. Pennell? (13) A. I have specific accountability for Winston, Camel, (14) Salem, Vantage, More, Now. (15) Cliff has responsibility for other brands and (16) other parts of marketing. Similarly with Dave. (17) I'm the only one responsible for that set of (18) brands. (19) Q. I follow you. So really, it's set up and (20) organized based on the brands? (21) A. It's not just brands, because there are other (22) relponsibilities besides brands. (23) Q. Okay. (24) A: I don't have any others. Dave and Cliff do, (25) but - Page 432 (1) Q. But that is a significant distinction. (2) A. Yes, that's one of the distinctions. (3) MS. BIXENSTINE: Randy, I appreciate you're moving (4) this along, but you're cutting off the witness, so if you.(S) can try not to do that. I would appreciate it. (6) MR. HOPPER: I'm sorry, sure. Yeah, I'm trying to (7) hurry. I apologize. (8) MS. BIXENSTINE: I appreciate that.. (9) MR. HOPPER: Q. You have a strategic function, (10) too, correct? In your title at least. (11) A. My title is senior vice president of Winston, (12) Salem - (13) Q. All those brands, plus - (14) A. Yes. (15) Q. Is there a strategic - (16) A. No. It's senior vice president - S/30/97 XAIAXI:CI of Winston, Camel, (17) Salem, vantage, More, Now business units. (18) Q. Business units? That's the piece that I - okay. (19) Mr. Pennell has a strategic component to his, right? (20) A. I forget what his exact title Is right now, (21) honestly. It's changed at different times. (22) Q. What's Mr. lauco's? (23) A. I think he's just senior vice president of (24) marketing, but I- I really can't remember. We've changed (25) titles around. Page 433 (i) Q. Do you know how old he is? (2) A. Oh, gosh, he's told me before. (3) Q. Is he about your age? (4) A. No, be's older than I am. (5) Q.30? (6) A. No, I'd say he's mid 40's. (7) Q. And do you know how old Mr. Pennell is? (8) A. Yes. (9) Q. How old is he? (10) A. He's 40. (t I) Q. You effectively handed over the reins of brand (12) marketing in 1988 to Cliff Pennell, correct? (13) A. Not of brand marketing. Of the Camel brand. (14) Q. Okay. Before you came to RJR, did you study or (15) understand brand marketing as different from marketing in (16) general? (t7) A. There can be some distinctions. There is (18) marketing where I suppose you don't have a brand. I don't (19) know. (20) Q. What are some other brand - products in the (21) marketplace? (22) A. Oh, well, there's cars, all kinds of cars. And (23) beer and liquor and toothpaste and cookies and candy and you (24) name It. Everything in the - you walk into a grocery (25) store. Page 434 (1) Q. So all consumer product oriented companies who (2) manufacture and market those products typically are engaged (3) in brand marketing? (4) A. Yes. (S) Q. And you don't draw any distinctions about (6) cigarettes from Tide or Gleam or - is that even marketed (7) anymore? Famous Amos Cookies or anything else, right? (8) MS. BIXENSTINE: Objection. (9) THE WITNESS: No, there is - excuse me. (10) MS. BIXENSTINE: I think the question is vague. (11) Go ahead. (12) THE WITNESS: No, obviously there are differences (13) between cigarettes and Gleam. Tooket• & Antz Page 428 to Page 434 (415) 392-0650 5 1 +14 a1053 ~
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(5) Q. All right. You wouldn't have at any point studied (6) or either read or it was passed on to you once you became an (7) officer at RJR in some document or book that you'd have (8) ' certain duties such as a duty of loyalty, duties to not (9) engage in self-dealing, things of that nature as an officer (t0) of a corporation? (11) A. I haven't heard the loyalty thing. I am loyal to (12) the company. (13) Q. That's very obvious, Ms. Beasley. (14) A. But - if you say self-dealing, certainly our (1S) company has policies about - I'm not sure what you mean (16) about self-dealing, but not engaging in outside business (17) that conflicts with our business or anything Illegal or (18) things like that. I mean we have company policies on that (19) that I have seen and signed and - (20) Q. Did you ever meet with anyone from your general (21) counsel office or perhaps even outside counsel once you were (22) elected as an officer of the corporation as to apprise you (2)) as to what your duties or responsibilities may be as an (24) officer in the company? (:5) A. I don't recall that. Page 414 (1) Q. That's probably something you would recall, 1(2) would imagine, wouldn't it? (3) A. I think so. but, you know. 14) Q. I mean it would have been probably a big day in (5) your career, the day you moved up from a manager? (6) A.Itwasabigdaywbenl=ot promoted. I don't (7) recall specific meetings, but I don't recall doing that. I (8) don't recall. (9) Q. All right. When you were at Madison studying for (10) your MBA - strike that. 11) What was your undergraduate major in? t1: i A. Finance. i1: ) Q. And you received a B.A. or a B.S. in that, I (t4) recall? (:5 1 A. It would be a BA, yes. 116) Q. Okay. Was that regimen, when.. you say finance, (17) more broadly encompassing of studying finance but not to the (18) exclusion of other business courses? (19) A. Yes, that's correct. (:0) Q. So you studied administration - business (21) administration and you studied marketing and you studied (22) finance and you covered a whole range of different business (23) topics? (24) A. Yes. 1'es. (25) Q. You were in the business Tooker & Antz program then? Page 4 15 --- (1) A. Yes. (2) Q. Okay. But you spent more time on finance and - (3) A. Right. (4) Q. - perhaps taxes and things like that? (5) A. Right. (6) Q. Then when you studied for your MBA, did you have a (7) focus during that period of time at all? (8) A. Yes. (9) Q. And what was that? (10) A. It was almost entirely marketing. Because I had (il) already been in the business school and taken all of the (12) prerequislte courses,taarketing courses. (13) Q. Did you ever study business ethics in (14) undergraduate program? (IS) A. I'm thinking here. It's been a whih. It could (16) have been part of some of the courses. I don't belleve I(17) had a specific course just on business ethics. (18) Q. Did you take a business ethics course as a part of (19) your MBA program? (20) A. I don't think so. I don't recall that. (21) Q. Do you recall If - if the program had a business (22) ethics course and ' you just didn't take it? (23) A. I don't reca0. (24) Q. Do you recall if there's a professor of business (25) ethics designated, or a chair? Page 416 (1) A. No, I don't think so. (2) Q. So to your - to your knowledge, you have never (3) bad a business ethics eourse, then, correct? (4) A. I didn't - I don't recall taking a business - (5) business ethics course. (6) Q. Have you ever studied any business ethics since (7) you've been at RJR in your career? (8) A. No. (9) Q. Has your company ever provided any seminars on (10) that topic? (11) A. No, we have company policy on business ethics and (12) documents are sent out reinforcing business ethics and what (13) the ethics of our company are, and we sign those documents. (14) We read tbem and sign them and turn them back in. (iS) Q. So you have a corporate code? (16) A. I don't know If it's been called a corporate (17) code. It's called the company policy. (18) Q. Is that in an employee (41 5392-0650 trAxrn handbook? (19) A. Yp. (20) Q. Is there a separate policy in any kind of books (21) provided to you as an officer of the company on that same (22) subject? (23) A. There is - I don't know if it's called exactly (24) business ethics, but there's a section on what's appropriate (23) in terms of engaging in outside businesa, in terms of Page 417 (1) dealing with our suppliers, et cetera, which I would (2) describe as business ethics. I don't know exactly what the (3) title says, but - (4) Q. I'm a lawyer and not a marketer. and I've never (5) taken a marketing course in my life. (6) A. Okay. I'm a marketer and not a lawyer. (7) Q. And you're a marketer and not a lawyer, and after (e) you go through this you're probably going to wind up going (9) back to law school. but I hope not. (10) MS. BIXENSTINE: I doubt it. (11) MR. HOPPER: You doubt it? You'd advise her not (12) to, right, Counsel? (13) Q. I need to you tell me, and these are some of the (14) things I referenced earlier I need to get on the record in (15) the Arch case. 1 need you to tell me generally what your (16) understanding of marketing is in a big muiti-national (17) corporation. What's it comprised of? (18) I know it's a general question. and I'm trying to (t9) not elicit an objection from your counsel as to vague, (20) because I just want to get a general understanding. (21) A. Okay. I think marketing is a process of (22) identifying and meeting consumer wants and needs. That (23) would include identifying positioning, strategies, pricing, (2s) promotion, product design, packaging design. Obviously, (25) advertising. I guess that's how I would describe it Page 418 (1) generally. (2) Q. I've had one person describe for me when they've (3) moved from sales into marketing what the difference was was (4) they spent a lot more time in meetings in marketing. Is (5) that true? (6) A. I haven't been in sales, so I don't - (7) Q. Do you spend a Iot of times in meetings in (8) marketing? (9) A. Sure we do. (10) Q. And I assume, and again. ('m trying to get (11) educated here. e Page 413 to Page 418 51714 2152
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Buc SVS{Cn15 .{ooiIGllOfl6 spend (I ll 70.•1,• 85.•11; 126:20: 127:23, 24, 25; 157: 7, 14;163:8,9;171:1 spending (2] 77••2; 132:25 spent (10] 69:25; 127:16; 128: 9, I 1; 129:13; 156:12, 15; 157:2; 340:9, 14 spoken (3) 13:25; 14:2; 15:23 sponsor (4) 160:1; 166:22, 25; 168:19 sponsored (2) 168:6, 13 sponsoring (5) 158:15, 18; 167••3, 21 sponsors (3] 158:20; 159:5; 165:14 sponsorship (2] 160:2; 168:4 Sports (1) 157:20 sports (2] 158:16, 17 spot (2) 330:11, 13 squeeze [11252.22 stage (1)162:6 stages (1) 204:18 , stand (3) 109:20, 25; 242:18 standing [1] 282:8 stands (2) 280:21; 281:6 Start (1) 69:10 start (25) 12:1; 50:1; 65:24; 92:8,• 95:8,• 111:19; 133:22; 178:21, 24; 179:15, 19; 214:11; 216:3; 241:18; 247••22; 248:12, 19; 264:9, 10; 291:2, 16, 18• 292:13; 294:24; 345:22 started (23) 32:24; 33:2; 68:18; 69:22; 74:16; 79••24; 81:23; 161:15; 167••16, 18; 200:1, 5; 209:18; 213:14; 214:12, 13; 229:11; 250:12; 257••17,• 275••8,• 295:5; 299:2 starter [3] 55:21; 56:1; 283:14 Starting (3)18:17; 126:22; 338:20 starting (11] 55:25; 162:9, 11; 179:2; 180:16; 209:14, 20; 236:15; 291:19, 24; 337:8 starts [4] 284:6; 295:20; 318:20; 320:11 State (2) 5:6; 7••2 state (5) 5:25; 6:20, 25; 8:24; 200:3 stated [1) 16:20 statement (29] 17:14; 21:9; 36:1: 130:15; 217••22; 218:16, 20; 221:2, 20, 22; 222:12, 15; 248:17,• 252:10; 253.8, 12; 259:19, 22; 260:15, 16; 264:23; 283:3; 288:19; 292:7; 296:25; 300:20; 310:10, 23 statements (1) 284:18 States (2) 64:16; 82:10 states 111327.24 static [1) 200:11 statistic (2) 247••23; 248:14 statistkaUy (1) 330:24 stat[stics (1) 258:8 status (3) 259:20,• 260:4, 9 stay (10) 67••13; 68:4; 93:19; 157•-10,• 175:8; 258:3; 292:17, 21; 310:1; 321:4 stayed (2) 8:6; 207••17 staying (1)14:18 step [S] 87:18; 89:10; 162••10, Mangini vs R.J. Reynolds i 18• -12811 Sterling 12] 78:5, 6 Steuart [1] 5:22 Steve [S] 5:16; 6:3; 91:9; 188:16; 271:4 Stewart (1) 179:11 Sticking (1) 47:18 sticking (1] 113:9' stipulations (1) 8:20 stone (1) 161:25 stop (4)167••11; 225:9; 268:14; 345:18 stopped (1) 268.20 • store (1) 65:8 stores (S) 64:17; 65:9,12; 87:1; 330:22 straight (4) 36:13; 37••2; 57••17; 113:9 strange (2) 97••10; 198••6 Strategic (3] 89:24; 235.14, 271:14 strategic (42) 87•19, 21, 23, 88:3, 5, 10, 13; 233:16, 17, 18, 23, 25; 234:1; 235:18, 21, 22; 236:1, 11; 242:9; 247••21; 261:22; 262:13, 14; 271:11, 16,17,21,23,24;272:2,12, 18,• 273: 9, 19, 21; 274: 8, 9, 15, 275:15; 290:16; 336: 22 Strategies (1] 243:19 strategies (S] 62:7; 76:25; 77••10; 87••24, 25 strategy (1) 257:15 Street (6) 5:12, 22; 91:8; 188:15; 271:3t 342:12 - street (1) 186:13 strength (3) 71:19, 21172:1 stretch (i) 280••24 strictly (2] 42:10; 113:9 strides (1) 317:25 Strike (2) 25:3; 189:19 strike (3) 118:11; 194:11; 325:1 striving (2) 269:23; 270:16 strong (2) 71:22 strongly [t)112:17 structured [1) 69:4 stuck [t) 261:1 studied [6)101 r9;179:11; 180:8, 13; 194:9; 245:15 studies (11] 44:16; 179:8; 196:19; 199: 251201: 5; 202:12, 16; 330:5; 344:7, 8, 14 Study (3)179:14; 191:3; 344:10, 11; 345:8 study (23)113:13, 16; 179:14; 193:10, 16, 20; 194:11, 15, 18; 195:18; 199:11; 209:16; 230:24; 232:251235:12; 249:1, 14; 330:8; 344:25; 345:5, 7,13 stut[ (S)10:5; 76:1 S; 113:11; 121:7; 202:1 stuffed [2) 343:13, 17 style (3)187:15; 188:19, 21 styles [3] 108:20; 109:1 subcategories [3)157.•22; 158:7, 12 subd(v[sion (1]. 237•19 Subgroups (t) 231:20 subgroups (3) 226:21; 227:1; 232:10 Lynn Beaslev • 5;29;97 subject [14] 12:16, 16::1; 44:14; 61:11, 14, 17,• 62:17, 23; 67.•22; 223:8, 20• 23; 274:1; 291:14 subjects (9) 40:8, 17, 18, 22, 23; 52:22, 24; 55:18: 70:1 S submarine [1) 213:20 subscribed (1) 307:14 subsegments (1] 231:25 subsequent (1) 214:18 substance (1)15:2 Substantial (l) 254.18 substantial (1) 254:18 substantially (1) 264:17 success (6)112:12; 123:22; 296:8, 16; 308:16, 21 successful (9) 98:10; 112:5. 20; 174:21; 255:12; 257:11, 12; 310:11; 312:10 suffered (1) 265:3 suffice (1) 323:12 sultlcient (1)128r14 suggest (4)171:19; 172:7; 285:10; 315:8 suggested (7)165:24; 166:2, 7; 228.22, 25; 314:15; 319:19 suggesting (2)170:12, 13 Suite (4) 5.17, 91:10; 188:17; 271:5 sum(1)15:2 sutnmarized (1) 179:4 summarizing (3) 202:15; 279:11; 337:21 Superior (115.5 supplemental (6) 80:9,10, 14,15,19;81:22 supplier (4) 47•1, 3. Se 6 suppliers ($) 46:7, 24; 47:8, 25;130:16 support (2] 338:25,• 340:25 suppose (6)126:12; 169:16; 198:4; 269:18; 270:14; 323:15 supposedly (i)129r6 Supreme 111179.4 Surgeon (1)179:3 surmis(ng (1) 338:14 surprise (7) 310:9,18, 20, 22, 311:3; 312:2, 3 surprised (1) 239:11 surrounding [l1304:23 survey [12)114:6r 115:12, 15; 116:19;118:24; 121:5, 6, 7; 193:13; 194:3, 7; 232:24 Surveys [3)199:20, 21; 227••13 surveys (7)117••5, 9; 119:13; 227••24; 243:6, 7; 277••13 survive 111284.15 suspect (4) 96:12. 13; 267••7; 340:22 suspended (2)18:2;128:21 suspicion [1] 54:5 suspicions [t] 262:7 sustain [2) 266:15, 18 swear (1) 8:20 switch (44) 93:19; 96:17; 98:9, 20; 99.5. 101:2t 102:5, 6; 119:9; 120:14, 25; 173:20; 174:10, 11; 175:7; 17'7••4, 5, 25; 185:10, 22; 209:8; 210:5, 10,• 211:1; 254:21t 255:3, 4, 7, Corcoraance ^. :..~.iec.3 . :1: :56:4, 9. 11: :5'•5: 258:5, 25: :59:5: :70:19: 292:22: 321:20; 325:18: 339:8 switched (4) 20.•4; 190.•4; 227:5 switcher [2)120••12; 252:8 switchers [13] 107:12; 119:6; 122:8,• 175:16; 251:9; 254:25; 255:11; 256:5, 24; 259:7, 11, 12; 267:20 switches (1) 96:16 switching (S4] 20••14, 16; 80:7, 8; 92:18, 23; 93:6, 16; 94:9; 96:20• 99:11; 100:25; 101:3; 111:15; 116:13, 14; 120:14; 121:9; 122:5, 21; 123:4, 6, 21; 124:4, 16, 18; 125:9, 20;177••9, 21; 178:11; 180:5; 184:11, 24; 189:7,• 227••4; 251:15; 253:6; 254:17; 256:12, 13, 18; 257:3, 6, 10, 11; 258:16, 17; 259:3; 300:12; 302:21; 321:24; 339:1 switching-wise (1) 189:11 sworn (1) 8:22 symbol [2] 260:4, 9 symbols (1) 259:20 synopsis (1) 95:9 system (s) 64:15,• 65:3; 265:11; 277:12; 330:7 systems 111277.22 T-shirt [10] 175:23; 293:7, 9, 22; 294:8; 295:8; 303:2, 7, 23; 304:3 T-shirts (2) 294:3t 304:5 table (2) 305:6, 11 takes (2)108:16; 172:23 talk [29)13:20, 22; 14:13, 18, 24; 102:13, 14; 113:4, 20; 181:15t 197:4, 23; 205:4, 13; 208:9, 20, 21; 229:24; 243:4; 251:11; 299:2; 300:25; 301:4, 5;310:1;319:17;346:4 Talked (1) 325:1 talked (21)10:21; 13:17; 14:5; 15:6, 21; 37.•25; 107••8,• 114:22; 116:1; 121:3; 123:20, 21; 183:4, 6; 243:1; 252:4; 278:2; 325:2; 333:15; 337••6 Talk[ng (3) 34:11; 208:23; 295:17 talking (99)12:4; 14:3; 16:4; 30:5, 8; 33:12; 40:2t 45:2, 3, 22, 46:9; 47:3; 49:21, 25; 53:24, 2S; 55:25; 68:3; 76:16; 91:23;94:10;96:5;99:8• 100:17,• 108:1; 109:3; 113:11; 1'17••4; 118:8, 9; 120:20, 21; 121:5; 161:19; 165:15; 167,•4; 168:10; 181:22, 24; 182:7, 9, 16, 17; 193:7; 208:10, 19, 22; 214:13; 215:7; 219:10, 14; 242:12; 248:9; 249:1: 250:19; 254:3, 8; 258:8; 260:6, 10, 12; 262:15; 264:1, 4; 266:24; 267:5; 269:6; 277:7; 278:9, 12; 280:6; 293:3; Tooker & Antz (415) 392-0650 From spend to talking 51-414 0 1 L4 1e:
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as,% Manginl v. R.I. now than two years from now, if that's what you (21) mean. Of course. (22) MR. HOPPER: Q. Okay. What if they haven't (23) smoked at all and they decided for all the various reasons (24) they were going to start smoking, and they establish - and (25) they chose a brand. Would it be to your advantage Reynolds Tobacco Lynn Beasley, Vol. U - 5/30/97 xMAx(1;) 1 (17) MS. BIXENSTINE: Objection. Go I better off If you're the (9) second ahead. (18) THE WITNESS: We would - what we want is adults (19) who have - who have decided to smoke to - (20) MR. HOPPER: Q. You're telling me a lot of things (21) that - (22) MS. BIXENSTINE: You're cutting off the witness. (23) MR. HOPPER: I know I am, and I want to try to do (24) it because I'm trying to save time. I know all of this from (2S) yesterday. Okay? Page 442 (1) What I'm trying to understand is, very simply, if (2) you can attract a consumer the first time they smoke versus (3) attracting that consumer three years later or five years (4) later, you've had an opportunity to sell product to them (5) sooner rather than later. Isn't that's correct? (6) MS. BIXENSTINE: Objection. (7) THE WITNESS: We don't - what we want is for (8) people who have chosen to smoke and are daily smokers to (9) choose our brand. That's it, period. (1o) MR. HOPPER: Q. But that's - that's an answer, (11) but It's not the answer to my question. That's what you (12) have in your mind as an understanding or a company policy or (13) however you want to describe it. But it's not the answer to (14) the question. (iS) MS. BIXENSTINE: It's not the answer you want. (16) MR. HOPPER: It's not the answer I want because (17) It's not the answer to the question. Because she's (18) answering a different question. (19) Q. This question is simple. I know what you market (20) to you say and I know what your company policies are, as you (21) say. But I'm asking you, if I'm a first time smoker and (22) I've never smoked and I come to RJR's display and I see Joe (23) Camel up there and I choose Camel as a first time I've ever (24) smoked, and you sell me, you know, indirectly through a (25) retailer those cigarettes, you have an opportunity to Page 443 (1) establish brand loyalty with a first time smoker. That (2) meets a very important objective of yours, correct? (3) A. I don't know, you know, because I haven't done any (4) research among first time smokers, and it could be that the (S) first brand you try you don't Iike as well, you keep looking (6) for other brands. (7) Q. Of course. (8) A. You know, you could be from a Page 440 (!) marketing standpoint to capture that market at the point (2) when they begin to smoke rather than later when they (3) switched? ; (4) A. It's real Important that we define begin to (5) smoke: Smoking to us is daily smoking, and it's someone (6) who's already buying a brand, because they're smoking (7) daily. And that's who we market to. (8) We don't market to people experimenting with (9) cigarettes. ( t0) Q. Okay. I understand that, because you've taken (11) considerable amount of time in the deposition yesterday to (12) lay all that out for us. (13) My question is if someone doesn't smoke and they (14) go and purchase your - let's just say for the sake of (15) discussion here your Camel brand, that's better for you than (16) if they've smoked Marlboro for three years and they start to (17) smoke Marlboro - or and they then switch brands later, (18) correct? - (19) A. You said they don't smoke and they purchase Camel? (:0) Q. The first - (.1) A. The very first purchase they've ever made? (22) Q. Yes. is Camel. The first time they've ever (23) smoked. i:4) A. We don't - I guess we don't talk to anvbodv that (25) it's - Page 441 1) Q. No. no. No. We re not talking to. Listen (21 carefully. : A.Okav. 4) Q. They don't smoke. .5) A. They don't smoke. ,6) Q. Okay? They walk into a store, okay? And the (7) first thing they purchas: is Camel brand.. s) A. Right. (9) Q. And they start to smoke for the first time in (10) their life. That's better for you as a company and as a(11) marketer and as a person trying to put products in the (12) stream of commerce to catch them at that point, to establish (t3) your brand loyalty, if I understand what that means, than if (14) they walked into that same store and bought a pack of (15) Marlboros and three years later came back and purchased (16) Camel? brand they pick up or the third brand. So having not (10) done research among that group and not knowing what the (11) process is, I can't tell you what's better and what's not. (12) We may be way better off If It's the second or third brand (13) they choose. I don't know. (14) Q. But hypothetically, if you could get them the (15) first time and you could establish brand loyairy, that's (16) going to benefit you because you're going to sell more (17) product, presuming they stick with you. (18) A. Presuming that - presuming, speculating, because (19)1 don't know - that someone who's - an adult, who's (20) decided to start smoking and the first brand they pick up is (21) Camel and then assuming that there is a decision process (22) there that makes the first brand you choose you're loyal to, (23) which isn't the case, that's not what we see, if you assumed (24) all those things that aren't true to be true, then your (23) conclusion would be true. Page 444 (1) Q. You used the word adult. have used the word (2) adult quite often. (3) A. Yes, sir. You (4) Q. What does adult mean to you? (3) A. An adult smoker, when I use It from - from our (6) company's perspective, unti11992 it was 18 years and a (7) smoker and over. From 1992 forward, when I used the word (8) adult smoker, it's 21 years and older. (9) Q. Okay. Do you think that a person who is 18 years (10) of age is an adult? (11) A. I think that - that's - It's a subjective (12) evaluation for each individual, but that our society in (13) general has determined that an adult is 18 and determined (14) what decisions people ought to be able to make at 18, like (15) voting and being drafted and moving out on their own. (16). And, you know, I think - if you ask me did I(17) think an individual was displaying adult behavior at 18, (18) there may be some who do and may be some who don't, but In (19) general our society I believe has determined that's an adult (20) stage. (21) Q. Do you think that an 18 year old has presence of (22) mind to render judgments about significant and important (23) things about their life at age 18? (24) MS. BIXENSTINE: Objection to the form of the (25) question. i Page 439 to Page 444 (415) 392-0650 Tooker & Antz 5i-+ 1 (A q 15uA
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•iA LtlSUNAil{ •, ec..+- ateyaotos t o0acco Lynn_ Beasle , Vol. Q (t4) MR. HOPPER: Q. But from a brand marketing (15) standpoint, if you were working for one of tbese other (16) companies, would you be strategicly ' marketing from a brand (17) marketing standpoint for those products the same way you (18) would for cigarettes? (19) Obviously it's going to be different, but I'm (20) talking about in the marketing sense. (21) A. The process of marketing, the process would be (22) similar. (23) Q. Okay. (24) A. Great differences In then how you do It and what (IS) you do.and - Page 435 (1) Q. I'm sure. One of the primary goals or functions (2) as I've heard you testify here is trying to establish (3) something called brand loyalty. Is that correct? (4) A. Yes. (5) Q. And what is that? (6) A. That's where someone feels very loyal to your (7) brand; they don't want to smoke any - they don't want to (8) switch to any other brand, they want to stay with your (9) brand. They think your brand is better than other brands, (10) and they purchase that brand most or all of the time. (11) Q. If I ask you the question how you establish brand (12) loyalty, without you giving me a long answer again for time. (13) can you - can you tell me how you do that with. let's say, (14) Camel, so we keep it even more focused? (13) A. You make sure that based on Camel smokers and (16) working with Camel smokers, adult Camel smokers, that you (17) are providing them what they want In a brand better than the (18) other brands are. 119) Q. Okay. Is that based upon information and (20) knowledge that you have discerned from your market? From (21) your consumer - consumers? Or is it based upon images. (22) visions. ideas, strategies. et ceiera, that you reflect onto (23) the market? (24) MS. BIXENSTINE: Objection to the form of the (2SJ question. Page 436 (t) MR. HOPPER: I just don't know how to ask it any (2) differently. (3) THE WITNESS: Okay. (4) MS. BIXENSTINE: If you understand it, that's (5) fine. (6) THE WITNESS: I'm not sure I do. but it's based on (7) asking consumers brand loyalty. It's based on asking (8) consumers how they feel about the brand. And how you find (9) out what they want in a brand is by asking them what they (10) want in a brand. And Tooker & Antt how they - you know, are there things (11) that they like about Camel that are better thsn, say, (12) Marlboro? Or are there things"thac they think Marlboro - (13) they like things in Marlboro better? Do they like the taste (14) in Marlboro better, do they like the package better, or is (15) Camel way superior and why it's superior. (16) MR. HOPPER: Q. Okay. You're in your meetings (17) and you say Camel, and you come up with an image and an idea (18) and a vision, and you put that into advenising, promotion. (19) packaging, product and pricing, and you have - you have (20) something you want to get to market. Do you then take that (21) and try to reflect that or - I'm trying to stay away from (22) the word 'impose' because I don't want you to think I'm (23) presuming you're being coercive about it, but are you taking (24) the image and trying to put that on the market? Or is it (25) that - which is, let's say with a cigarette, milder taste. Page 437 (t) So you've been in your meeting and you say 'we want a (2) cigarette with milder taste.' Do you try to project that (3) onto the market? Or is it that the market out there is (4) telling you 'we want a cigarette with milder taste,' and so (S) you market it to it? (6) A. Ri=ht, the - (7) Q. The latter? (8) A. Former, latter. It's that we identify what (9) consumers want and then we try and develop products, (10) packages, advertising that reflect what consumers have told (11) us they want. (12) Q. Do you ever do it different than that? (13) A. Like come up with an idea and then go see if they (14) like it, even though we haven't beard they'll like it? (1S) Q. Yes. (16) A. I guess we could do that. Although once you've (17) done, as I have, thousands and thousands of focus groups (18) with adult smokers, I have a real sense of what it is (19) they're looking for and want, and It isn't like I'm deaJing (20) with an empty space or a blank sheet of paper. (21) So it isn't like you generate ideas in isolation. (22) You don't. You know something about the consumer before you (23) generate ideas. (24) Q. Okay. So is it - it's a pretty finite universe. (25) then, as to how much or what it is you can kind of market to Page 438 (41 S )392-0650 - S/30/97 (1) them? (2) MS. BDCENSTINE: Objection to the form of the (3) question. (4) THE WITNESS: You know, the universe is how good (5) ire you at coming up with ideas that meet their wants. You (6) know? (7) MR. HOPPER: Q. Okay: Back to my original (8) question how you establish brand loyalty. If you look at (9) your market. bow do you go about establishing brand loyalty (10) to Camels? (11) A. We look for our product that - for our adult (12) Camel smokers to rate our product better and like it better (13) than our competition, to like the package better than the (14) competition, to like the advertising better than the (1S) competition, to like the promotions we give them better than (16) the competition; to basically feel like everything we (17) deliver to you as a Camel smoker is superior to that I can (18) get from another brand. (19) MR. HOPPER: Is this a good time for you to stop? (20) THE VIDEOGRAPHER: This marks the end of Videotape (21) No. S in the continuing deposition of Lynn Beasley. We're (22) off the record at 11:03 a.m. (23) (Brief recess in proceedings - 11:03 to 11:06 am.) (24) THE VIDEOGRAPHER: We're back on the record at (25) 11:06 a.m. Page 439 (1) MR. HOPPER: Q. Ms..Beasle)', we were - before (2) the break there, we were talking about brand loyalty. Is it (3) true to say that the earlieror the sooner you can establish (4) loyalty to any given brand that the more product you will (5) sell? More likely than not? (6) A. What do you mean by earlier? I'm - (7) Q. If you can establish a loyalty on behalf of a(8) consumer to a brand sooner after they're exposed to it in (9) the marketplace than later, you have a chance of attracting ()0) them as a customer? Is that correct? (11) MS. BIXENSTINE: I object to the form of that (12) question as being vague. (13) MR. HOPPER: Q. If they walk into • a store and (14) they see your product on Tuesday and you can establish - (15) and they purchase it and they like it for all those reasons (16) you've told me, and you get them on Tuesday rather than on (17) Saturday, that's better for you, correct? (18) MS. BIXENSTINE: Objection. (19) THE WITNCSS: We would rather have somebody switch (20) to Camel Page 434 to Page 439 51714 2154
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s%c1........ ...uaKu Page 445 (1) THE WITNESS: You know, I think for - again, if (2) you generalize to all 18 year olds, certainly there are (3) some, there are some at 50 who are not ready to make (4) imporrant decisions for themselves. But I think in general (5) our society believes. and I do, too. that 18 is an adult (6) phase of your life. (7) MR. HOPPER: Q. Have you ever read anything or do (8) you know or understand an age at when most people begin to (9) smoke? (10) A. Most - the average age of daily smoking is (t t) between the age of 18 and 19. (t2) Q. Okay. Do you ever study or look at c:;a provided (13) by the U.S. Government with respect to smoking trends? (14) A. I don't normally. But because of the FTC (ls) investigation over from 1990 to '94 and then more recently, (16) I have looked at a lot of U.S. Government data. (17) Q. Okay. Have you ever looked at the National (18) Household Survey provided by the United States government in (19) 1991? Is that anything you're familiar with? (20) A. It doesn't sound familiar. National - (21) MS. BIXENSTINE: Are you talking about TAPS or (22) Michigan? t23) MR.HOPPER: No.I'mnotulking about either one. (:4) MS. BIXENSTINE: Objection. ;:5) MR. HOPPER: Q. If I told you that that U.S. Page 446 r 1) Government study in 1991 found 16 percent of adults who were (2) daily smokers begin smoking by age 12, would that surprise (3) you? ;4) A. I don't think that's correct. I mean I don't know (5) if that study said that or not, but what I have seen is the (61 U.S. Government study, the Substance Abuse Mental Health (7) Services Administration, that they do it every year. And (8) every year they have shown that the average age of daily (9) smokingis between 18 and 19. That's by the U.S. (10) " Government. (11) Q. If I told you that 37 percent of adults who are (12) daily smokers begin by - begin smoking by age 14, would you (13) believe that? (14) A. I don't know what the distribution is on the (IS) SAMESA study. (16) Q. Do you believe that? (17) A. I don't know. I mean I don't know how that study (18) was done. I don't - Tooker & Antz (19) Q.Okay. a.yt3II DiaTley, v01. U • Sr3Q/97 )ut,uulT (20) A. I haven't seen it. (21) Q. If i told you 62 percent of adults who were daily (22) smokers begin smoking by age 16. do you believe that? (23) A. Based on the data I've seen, that does not sound (24) right. (25) Q. If I told you that 89 percent of adulis who were Page 447 (t) daily smokers begin smoking by age 18. do you believe that? (2) A. Could you say that one again? (3) Q. Yes. 89 percent of all adults who are daily (4) smokers began smoking by age 18? (5) A. What does begin smoking mean? (6) Q. Smoked their first cigarette. (7) A. They smoked - okay. So can you say it again now? (8) Q. Um.hmm. 89 percent of adults who are now daily (9) smokers. (10) A. 89 percent of all adults who are now daily (11) smokers - (12) Q. Began smoking by age 18. (13) A. They smoked their first cigarette by age 18? (t4) Q. Um-hmm. ()S) A. That could be true. I don't know, but It could (16) be. (17) Q. And that only 11 percent of smokers take up (18) smoking after age 18? (19) A. What do you mean by take up smoking? (20) Q. They stan smoking after age 18. (2)) A. They had their first cigarette after age 18? (22) Q. Yes. (23) A. And what did you say? 11 percent? (24) Q. 11 percent. (25) A. Have their first cigarette after age 18? I don't Page 448 (I) know, it could be true. (2) Q. Well, now, you have testified extensively here (3) that you've studied age 18 to 24 population for smokers, (4) correct? (S) A. Yes. (6) Q. Anj that you have done extensive marketing to the (7) age 18 to 24 group of smokers. correct? (8) A. Correct. I've been marketing to - I have (9) marketed to 18 to 24 adult smokers, yes. (10) Q. And in fact, you have a- you have an anacronym (11) for that age group called YAS. correct? (12) A. Younger adult smokers. (13) Q. Okay. Is it true that the adult tobacco - that (14) adult tobacco consumption has declined over the (4 1j.;39 2.0-6 5 0 past 30 (13) years in the age group of persons older than age 24? (16) MS. BIXENSTINE: I object to the form of the (17) question. And it's a point of clarification. Aie you (18) talking about aumber of smokers or volume in terms of number (19) of cigarettes smoked? (20) MR. HOPPER: Both. ; (21) THE WITNESS: I dont know about 30 years. 1(22) believe that since I've been with the company the general (23) trend has been towards fewer people -' fewer adults as daily (24) smokers and lower overall industry shipments. (25) MR. HOPPER: Q. What do you think has prompted Page 449 (1) that decline? (2) A. Fewer people deciding to smoke. (3) Q. Why do you think that's true? (4) A. I think there's a lot of cultural pressure on (5) smoking. I think that (6) Q. Why? (7) A. People don't like It. (8) Q. Why? (9) A. You tell me. (10) Q. You tell me. You're in marketing. You study this (1-1) stuff every day all day. (12) A. I - I study adult smokers. (13) Q. That's exactly who I'm talking about. (14) MS. BIXENSTINE: Wait.. You're cutting her off. (15) MR. HOPPER: Q. I'm talking about adult smokers (16) and the decline over the last 30 years. (17) A. No, you're talking about people who did not choose (18) to smoke. (19) Q. No. (20) A. I'm talking about people who have chosen to smoke. (21) Q. No. I'm talking about people over the last 30 (22) years who smoked and who have declined - and who have (23) decreased the number of cigarettes they've smoked or they've (24) quit altogether. (25) A. I don't talk to people N•ho have quit. Page 450 (1) Q. I'm not asking if you've talked to, them. I'm (2) asking you why you think that they have declined smoking. (3) And you've listed off two or three reasons. and I'm asking (4) you why. (5) A. Why fewer people have decided to become smokers (6) or - (7) Q. No. No. Who were smokers who have either quit or (8) died from smoking or other reasons. Why do you think so? Page 445 to Pase a:;0 51714 2155
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esA Mangini v. R.J. similar to the case that you've been testifying to (24) the last day and - yesterday and this morning. (25) I'm going to, for the sake of time, dispense with Page 408 (1) the admonitions and a number of prerequisites that typically (2) and normally would be asked or brought onto the record at (3) this point, because I'm presuming, now that you've sat all (4) this time, that you are familiar with a deposition and you (5) understand what your obligations are. (6) 1 do want to reinforce the fact that simply (7) because we've moved from one case to another that you're (8) still under oath, and you're still sworn to tell the truth. (9) Also, out of respect for your time and for (10) counsel's time, I'm going to try to limit tny questions and (11) not try to cover ground that Mr. Janecek has covered in the (12) Mangini matter. However, I need you to cooperate with me in (13) that there are some questions that I need to ask to get some (14) responses to so that I have a record in the Arch case of (1S) those matters. But know that my intention is to try to be (16) surgical about this and keep this pointed and limited as (17) much as possible. Is that clear to you? (18) A. Yes. (19) Q. I want just to ask you a few background questions (20) that I don't recall that you provided response's to in the (21) Mangini case when Mr. Janecek questioned you yesterday (2:) But would you please state your full name and (23) spell it for this record, please. (24) A. Lynn Beasley. L-Y-N-N, B-E-A-S-L-E-Y. (25) Q. And where do you currently reside. Ms. Beasley? Page 409 ; t 3 A. Do you want my address? t=) Q. Yes, please. (3) A. 161-H. Hartley Drive, High Point, North Carolina. 14) Q. And how long have you lived at that address? (5) A. Approximately four years. 16) Q. Are you currently married? (7) A. Yes. (8) Q. Do you have children? (9) A. I don't have children of my own. I have (10) stepchildren. (11) Q. Okay. And your age? (12i A. I'm 39. (13) Q. And you were born where? (14) A. In Richland Center, Wisconsin. (15) Q. Again, for the sake of time and brevity. I'm not (16) going to ask you to Reynolds Tobacco Lynn Beasley, Vol. II - S/30/97 run through your education and I'm not (17) going to ask you to repeat answers to questions regarding (18) your entire resume, but I would like to know how long you've (19) actually been in a marketing position at RJR since taking up (20) your employment there. (21) A. The full time I've been employed at Reynolds I've (22) been in marketing. (23) Q. And that would be bow many years now? (24) A. In July It will be 15 years, I believe. I Joined (25) in Jul of 1982. Page 41 (t) Q. And as I recall from your testimony yesterday, you (2) testified to the fact that since graduating from Richland (3) Center Community College and going on and doing your work at (4) Madison that you've been employed only by RJR in your (5) career? (6) A. Since graduate school, R.J. Reynolds has been my (7) only employer. (8) Q. And how long have you been an officer with the (9) company during that 15 years? ( l0) A. Officer would be 8-8 - 849 is when I became an (11) officer. (12) Q. And that was as a vice president? (13) A. Vice president. (14) Q. And would that be vice president of brand (15) marketing? (16) A. It was vice president of strategic marketing (17) planning. • (18) Q. So you've been an officer with the company for (19) roughly eight years? (20) A. 8-89 to the present, right. (21) Q. Can you tell me what in your mind distinguishes (22) your job as an officer at RJR from those positions that you (23) held prior to becoming an officer at RJR? (24) A. I think as an officer of the company I am more (25) involved with broader company decisions, strategic Page 411 (1) decisions, brought In more on personnel policies, things (2) like that. (3) Q. Have you ever been made aware at any point since (4) you've become an officer, either by your in-house counsel at (s) RJR or perhaps by outside counsel, or anything that the - (6) that the company has given you, meaning through your (7) personnel office, that apprises you of the responsibilities (8) or duties that an officer in a legal corporation has? (9) A. I don't recall seeing any document on that. XMAXi61 (10) Q. Have you ever asked any questions about it since (11) you became an officer as to whether you might have certain (l2) responsibilities or obligations to discharge certain duties (13) once you became an officer in the company? (14) A. I don't know what you mean. (1S) Q. Let me look at it from a little different (16) perspective. You took a course of education to earn a(t7) Masters of Business Administration degree at Madison, I(18) believe. Correct? (19) A. Yes. (20) Q. Did you complete that degree? (21) A. Yes. (22) Q. And you earned your MBA? (23) A. Yes. (24) Q. At any point during that education did you study (25) corporations? Page 412 (1) A. Study the structure of corporations? Or - (2) Q. Anything about corporations. (3) A. We certainly studied products and brands and (4) marketing strategies. (5) Q. Did you ever study anything about the structure of (6) a corporation? (7) A. I - I don't know if it was in graduate school or (8) not, but I remember studying sole proprietorship and (9) partnership and corporation, that's - (10) Q. There we go. And at some point you studied - and (11) I know you wcren't in law school, but at some point you (12) studied the corporate entity and structure, probably, you (13) think? (14) A. I don't know. What do you mean by that? I'm (13) really trying to recall here. It's been, you know, a long (16) time since I had those courses. (17) Q. Well, again, for the sake of time so we don't (18) start trying to see how many angels we can get on the head (19) of a pin here. I'm just trying to find out just generally if (20) you have some knowledge about corporate structure. (21) A. Some knowledge. I would say some knowledge, yes. (22) Q. Did you ever, either in the course of your MBA (23) program or sometime later, come to understand certain duties (24) and responsibilities that an officer in a corporation (25) undertakes once they become an officer, that you recall? Page 413 (1) A. I'm not - I - (2) Q. You either probably would remember that or you (3) don't. (4) A. I don't recall. Tooker d6 Antz Page 407 to Page 413 (413) 392-0650 t~151~ 51-+)q d
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asA Mangini v. R.J. Reynolds Tobacco a14? (17) A. I can't tell. It might be a 14. (18) Q. Okay. And what is the next category? ' (19) A. 18 to 24. (20) Q. All right. And going back to the front page of (21) that document - excuse me, to the second page of that (:2) document, is there a date on that memorandum? (23) A. September 26, 1972. (24) MR. HOPPER: Would you mark that as Arch Exhibit (25) No. 5, I believe, Mr. Court Reporter. Page 472 (1) (Arch Exhibit S marked.) (2) MR. HOPPER: Q. And Ms. Beasley, if you would (3) take a moment and look at this, it's a document I believe (4) that you've already seen and referenced in the Mangini (5) matter while testifying yesterday, so you should be familiar (6) with it enough. (7) Ms. Beasley, are you familiar with the document (8) that's been placed before you as Arch Exhibit No. S? (9) A. It looks similar to the Mangini exhibit. I (10) Q. And what's the title of that document? ' (t 1) A. It says Strategic Research Report. (12) Q. And what's the title of it? (13) A. Younger Adult Smokers: Strategies and (14) Opportunities. (1S) Q. And is there a date on it? (16) A. February 29th, 1984. (17) Q. And would you go to page 1 of the document. It's (18) actually little or small letter i. (19) Would you go to the middle of the . page and read (20) for me the bold-faced heading following those first two (2: ) paragraphs under Purpose. Read for me that - that next (22) heading? ,:3i A. The Importance of Younger Adult Smokers. Younger (24) adult smokers have been the critical factor in the growth (25) and decline of every major brand and company . other the last Page 473 t 1) 50 years. They will continue - continue to be just as (2) important to brands/companies in the future for two simple (3) reasons. (4) Q. And the reasons are? (5) A. The renewal of the market stems almost entirely (6) from 18 year old smokers. No more than S percent of smokers (7) start after age 24. (8) The brand loyalty of 18 year old Lynn Beasley, Vol. i'I - S/30/97 xMAx01) age. (l0) Q. And the next paragraph? (11) A. Thus, the annual influx of 18 year old smokers (12) provides an effortless momentum to successful first brands. (13) Marlboro grows by about .8 share points per year due to 18 (14) year old smokers alone. (1S) Q. And the next paragraph? (16) A. On the other hand, brands/companies which fail to (17) attract their fair share of younger adult smokers face an (18) uphill battle. They must achieve net switching gains every (19) year to merely hold share. By not attracting its fair share (20) of 18 year old smokers, RJR yielded a.$ point ingoing share (21) advantage to PM In 1983. (22) MR. HOPPER: Thank you. (23) MS. BIXENSTINE: Randy; is there some reason why (24) you're just having the witness read parts of documents? (25) MR. HOPPER: Sure, but I'm not going to tell you Page 474 (1) what it is. . (2) MS. BIXENSTINE: All right. I would like to have (3) you show us at some point, because otherwise I think this is (4) a waste of time. (5) MR. HOPPER: Well, you can think whatever you (6) would like. (7) MR. JANECEK: That's, okay, Randy. She thinks my (8) whole litigation is a waste of time. (9) MR. HOPPER: No, she doesn't. And I won't say it (10) on the record, but (11) Would you mark that as Arch Plaintiff's Exhibit (12) No. 6, please. (13) (Arch Exhibit 6 marked.) (14) MR. HOPPER: Q. And Ms. Beasley, would you take a(1S) moment and look at that document. And we'll go off the (16) record while she's doing that. (17) THE VIDEOGRAPHER: We're off the record at 12:23 (18) p.m. (19) (Discussion off the record.) (20) THE VIDEOGRAPHER: We're back on the record at (21) 12:25 p.m. (22) MR. HOPPER: Q. Ms. Beasley, you've now had a (23) chance to look at what has been labeled as Arch Exhibit No. (24) 6. Can you tell me what the title of that document is? (2S) A. Thoughts on Younger Adult Smoker Stud . Page 475 (1) Q. And who authored this memorandum? smokers far (9) outweighs any (2) A. It says from R.C. Nordine. tendency to switch with the - with (3) MR. HOPPER: And Counsel, do Page 471 to Page 476 (415) 392-0650 you wish to (4) stipulate, again, that it's produced by her company for the (5) Humphrey case? (6) MS. BIXENSTINE: Yes. (7) MR. HOPPER: Q. And I'm going to read for you a (8) couple of sentences, and then I would like you to tell me if (9) I have read accurately what it says. (t0) Number 1 on the first page: What types of (I 1) attitudes do smokers have towards brands? Why do they have (12) these attitudes? (13) Is that correct? (14) A. That looks correct. (15) Q. Number 2. What trends exist among younger adult (16) in terms of smoking incidence - demographic or lifestyle? (17) A. Yes. (18) Q. Number 3. Are brands significantly out of touch (19) with the values and lifestyles of younger adults? What are (20) they - what are the key motivations and lifestyles and how (21) do they relate to beliefs about existing brands? (22) Is that accurate? (23) A. Yes. (24) Q. And then it goes on to say Discussion: A lot of (2S) our thinking revolves around this issue. We need to Page 476 (1) understand the driving motives of younger adults and the way (2) they express these motives in their lifestyles. This is (3) where cues and symbols become important. (4) Is that accurate? (5) A. Yes. (6) MS. BIXENSTINE: You mean is that accurate, did (7) you read it accurately? (8) MR. HOPPER: That's correct. (9) THE WITNESS: Right. You read it accurately. (10) MR. HOPPER: Q. Further down the page it says in (11) two more points Mr. Nordine makes in number 1, he raises the (12) question: How do trends get started among younger adults? (13) Do they just happen? What categories have erupted and why? (14) How long did they last - a fad or a trend? Are there trend (15) leaders - role models, blacks, et cetera. (16) Number 2. What rules of thumb are there are (17) developing effective young adult smoker marketing programs? (18) Some that have been suggested are: Use of a soft sell. Use (19) humor. Stress emotion not reason. Avoid discounting. (20) Don't copy someone else - be different. No gimmicks. (21) Did I read those two accurately? (22) A. I think when you read Tooker & Antz d 05 1-+ I `A al~j-f K
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-s•-- - .%../. Ai (18) MS. BIXENSTiNE: Okay. (19) MR. HOPPER: Q. You have the packaging and (20) ya-de-da-de-da, those things you said, we won't take time to (21) go back in the record, but don't those things get put into (22) advertising or promotional context? We're moving from the (23) concept actual kind of in the meeting times; now ~ou're (24) going to the market. (25) A. Right. The package, the name, the product itself Page 424 (1) are very important communicators. As important as the (2) advertising. As important as promotion. (3) Q. I understand that. But functionally, practicaliy, (4) there are two ways that you get that out, if I'm (5) understanding you and understanding how the process works. (6) And that's through advertising and promotions. (7) A. No. (8) Q. What other way do you do it? Practically. (9) A. Practically? That's what I was going to get to. (10) You know, you walk in a store and there's a display in the (11) store. And the product - the package is sitting there on (12) the display. (13) Q. And that's not part of a promotion? (14) A. No. That's displaying the product. f 15) Q. Okay. So then you would say that there's (16) advertising, promotions and packaging or display? - 1') A. Packaging, product. You know, when - this is how (18) you communicate with the consumer. The package (19) communicates, the brand name communicates, the product (20) itself communicates, how the product performs. The (21) advertising communicates. Promotions communicate. r:: i Q. All right. So there's really three, then. Three (23) media? Don't confuse that with electronic and news print (24) and TV - (=s) A.Okav. Really. Page 425 (t) Q. - and newspapers and all that. I'm talking about (2) the media of marketing here. (3) A. Okay. Advertising, promotion, package, product, (4) price. If you want to call all of those one, you can. (5) Q. I want you to, so you can help me keep this (6) simple. (7) A. All right. It's package, product, price. And (8) they're not really the same thing, so to me it Tooker & Antz -v.w • vY1lGW Lypn Deasley, Vol. U - S/3t)/97 would be (9) there aren't two things, there would be at least five things (10) there, (I 1) Q. I understand that, but you're a guru and I'm just (12) a, lawyer. (13) A. And they're different, really. (t4) Q. But the three P's, for my sake, can be lumped into (15) one other media by which you do it. (16) MS. BIXENSTINE: Objection. (17) THE WITNESS: You know, really, I'm not going to (18) be - I'm not trying to be difficult, but in marketing we (19) would not lump product, packaging and price together. We (20) would say you can communicate with advertising, you can (21) communicate with promotions, you can communicate with the (22) package, you can communicate with the product, you (23) communicate with price. (24) MR. HOPPER: Q. When you communicate packaging, (25) product and price - Page 426 (1) A. Um•bmm. (2) Q. - how do you do it? (3) A. The package is displayed in a store and consumers (4) walk in and see it. When they actually - (5) Q. So the product itself? (6) A. The package of cigarettes. (7) Q. Yeah, okay. (8) A. The package of cigarettes is displayed in a store (9) and people walk up and look at it and they see it, and they (10) form an Impression about the brand. (1I) Q. And that's notadvenising it. It's not (12) necessarily a promotioning, then? (13) A. That's correct. (14) Q. All right. (13) A. The same thing when you open the package and you (16) take out a cigarette, It communicates things about the (17) cigarette immediately. If It has a white tip it (18) communicates one thing. If it has a brown tip it (19) communicates another. If it's 100 millimeter it (20) communicates one thing, if it's slim it communicates another (21) thing. So again, you're communicating things about your (22) brand once people interact with tbe product. (23) Q. The - would you say that - and again, I realize (24) because you're a lot more sophisticated than I am about it, (25) but I'm trying to save time here as well so you can go home Page 427 (I) at some point in this process, would you say that you place (2) more of an emphasis on any one of those areas than on any (3) other? Do you place (415).392-0630 xYAx(f1 more emphasis on advertising your (4) products over promotions. or more emphasis on promotions (5) over advertising, or more emphasis over - and stick - I(6) know you don't do it, but on packaging, product and pricing (7) over the other two? (8) A. I would say the most Important thing that you have (9) right is your package and product. If you don't have that (10) right the other can be a total waste of monev. (tt) Q.Okay. So- • (12) A. So that I would put first as the most important. (13) Q. All right. Then does that - does it necessarily (14) follow thacyou spend more money on packaging, production (15) and pricing than you do on the other two? (16) A. No. No. (17) Q. Okay. So as a matter of budgetary expenditure, (18) you may spend X millions of dollars to get your packaging, (19) production and price right on it, but you might spend six (20) times or two times or 20 times that much on advertising? (21) A. Right. And It depends upon what you're putting in (22) that first category. If you're putting in product, actually (23) making the product, the cost of making the product, then no, (24) you're not spending way more on advertising and promotion, (25) because you're - I mean you have the codt of making the Page 428 (I) product, obviously. (2) Q. Okay. Now, remind me once more what your current (3) title and position is. (4) A. Senior vice president of the Winston, Camel, (5) Salem,: Vantage, More, Now business units. (6) Q. Are there senior vice presidents in the company (7) who are higher up than you, meaning that you would report to (8) them or have some - they would have some seniority over you (9) in one way or another? (10) A. I don't believe so. (I1) Q. Do you report to the president ofRJR? (12) A. The president and CEO. (13) Q. You're in his - I believe the president's a man? (14) A. Yes. (15) Q. I'm blanking on his name. (16) A. Andrew Schindler. (17) Q. Andrew Schindler. He has how many officers in ()B) his - in the senior management office of RJR? (19) MS. BIXENSTINE: Objection. Do you mean di t (20) reports? Page 423 to Page 428 51714 2153
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...... (17) A. Yes. •..+. a%G)YVA ra • VY4btV a, aa ow~er• Vpt. U --5/jQ/97 iMA7ulJ1 (18) Q. To maintain, to simpiy maintain your market share, (l9) isn't it imperative for you as a marketer that you must (20) capture the 18 to 24 year age bracket of smokers out there? (21) A. No. (:2) Q. Why? (23) A. Because a brand can be successful by bringing out (24) product innovation that causes switching. (25) Q. But it hasn't. Ms. Beasley. Page 4S6 (t) MS. BIXENSTINE: Objection. (2) MR. HOPPER: Q. The numbers have dropped and are (3) still dropping. That's not - (4) MS. BIXENSTINE: Objection. (5) MR. HOPPER: Q. - plausible. (6) A. You're wrong. (7) Q. I am not wrong. (8) MS. BIXENSTINE: Objection. That's not a(9) question. Let her answer the question. (10) MR. HOPPER: Q. You certainly may. (11) A. A, there are 44 million smokers. For example -(12) or the whole R.J. Reynolds Company has 2S percent of them. (13) We can grow our company endlessly - you you haven't. (14) 11S. BIXENSTINE: Objection. Let her finish her (I5) answer. I've been very patient. But you're cutting her (16) off. I want to move u along, too, but you're cutting her (17) off. Let her answer the questior. (18) MR.IANECEK: That shouid go both ways. You (19) should not cut her off, as well. 1:0) StS. BIXENSTINE: I'm not cutting her off. (:1) MR. HOPPER: Thank you. Counsel. ,==) THE WITNESS: R.J. Reynolds can be very successful (23) as a company. c:s ) %1R. HOPPER: Q.1 think you need to speak up. (:51 A. R.J. Reynolds can be very successful as a company Page 457 (1) by attracting switchers. 7S percent of adult smokers, (2) 33 million smokers do not choose our brands and we can be (3) very successful as a company to by attracting switchers to (4) our brands. 15) Q. Can be. But you haven't. You keep talking about (6) the future. You haven't. You haven't been successful at (7) that. The only time that you've been successful in any (8) remarkable way in the last few years. isn't it true, is Tooker & Antz when (9) you launched the Joe Camel campaign and you marketed to 18 (10) to 24 year olds. Correct? (111 A. Wrong. No. (12) Q. You weren't successful there? (13) A. No. That's not- (1i) MS. BIXENSTINE: Objection. (1S) THE WITNESS: That's not the question you asked. ' (16) MS. BIXENSTiNE: You said the only. (17) THE WITNESS: You said the only. (18) MR. HOPPER: Q. Oh, well then enlighten me. (19) MS. BIXENSTINE: Objection. That's not a (20) question. (21) THE WITNESS: Ask me a question. (22) MR. HOPPER: Q. Tell me how and where you've also (23) been successful. (24) A. Doral is a very successful brand. Very (23) successful. It's now In the top tive cigarette brands. We Page 459 (1) grew It from almost non-existence. It's based on switching (2) and it has been Incredibly successful. It 1a now our (3) company's largest brand. (4) Q. And that's only one brand in your company, (5) correct? (6) A. That's onc of our brands. (7) Q. Overal(. across all brands. have you been (8) increasing market share among adult smokers age 30 - age 25 (9) to 35? (10) A. No. (11) Q. What about from 35 to age 45 or 50? (12) A. I haven't looked at the total company profile, but (13) our market share - let's keep this brief. R.J. Reynolds' (14) market share has been declining. (1S) Q. Among adult smokers? (16) A. Yes. (17) Q. From age 25 to 35? (18) A. I haven't looked at from age 2S to 3S. I assume (19) that's true. I haven't looked at it. But our total market (20) share among adult smokers has been declining. (21) Q. Okay. I cannot believe that in those executive (22) committee meetings that you sit in every week as a senior (23) vice president of marketing that you are not privileged to (24) that level of dau, given the level of automation and (2S) sophistication of a muiti-billion dollar corporation, that Page 459 (1) you don't know whether you are a losing market share in a (2) certain age bracket. (3) MS. BIXENSTINE: Objection. That's (4) argumentative. (4 1 S)592-0630 51714 2156 (S) MR. HOPPER: That's fine. But she gets to answer. (6) THE WITNESS: Look, what we look at and what is (7) important ts a brand's profile. And thai is what we look (8) at, is a brand and how successful that brand is at (9). maintaining loyalty and brand switching. (10) For the total company, what we focus on is our (11) sales and market share. (12) And it's not that I am not privy to that (13) information. if I wanted to look at that I could. That is (14) not insightful . information. (tS) MR. HOPPER: Q. Isn't it true that if you could (16) increase your share of the age 18 to 24 young adult smoking (17) population that you could overall increase the sales of (18) cigarettes to the smoking population? (19) A. No. (20) MS. BIXENSTINE: Objection. That's a vague (21) question.. (22) MR. HOPPER: It's not vague. It's very (23) straightforward•and clear. (24) MS. BDCENSTINE: I disagree. Go ahead. I (25) THE WITNESS: No. Page 460 ~ (1) MR. HOPPER: Q. You're telling me that if you (2) didn't - let's take it in the negative. If you didn't (3) increase the share of smokers in the age 18 to 24 age (4) bracket, young adult smokers. YAS, that you would not gatn.(S) market share? Excuse me, that you would gain market share? (6) MS. BIXENSTINE: Objection. (7) THE WITNESS: We can - I think this is what (8) you're asking. I'm not sure. But we could decline among (9) adult smokers 18 to 24 and have switching gains among 25 (10) plus smokers that more than offset that and grow our market (11) share. (12) MR. HOPPER: Q. I absolutely positively cannot (13) believe that you think that. (14) MS. BIXENSTINE: Objection. (15) THE WITNESS: You are entitled to your opinion. (16) MR. HOPPER: Q. I'm entitled to my opinion, and (17) the numbers completely bear you wrong, and I would love to (18) go sit in your executive committee meeting and hear you tell (19) that to Mr. Schindler. (20) MS. BIXENSTINE: Objection. (2l) MR. HOPPER: Q. Your future is in marketing to (22) age 18 to 24 because that's why you developed the Joe Camel (23) campaign. Isn't that true? (24) A. No. What we developed - I developed, directed (25) the Page 455 to Page 460
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BSA Mangini v. R.J. Reynolds Tobacco Lynn Beasle y, Vol. II . 5/30/97 (9) MS. BIXENSTINE: Objection. l Page 452 That's compound. (10) THE WITNESS: Would you say it - (11) MR. HOPPER: Q. That's all right. You can (12) answer. (13) A. You need to say. it again. (14) Q. Why has the trend been toward declining adLlt (15) smokers over the last 30 years? (16) A. Because the culture is very much against smoking. (17) Q. Why? (18) A. Because I think it's a - a very repressive (19) culture right now on individual freedom and choice. If you (20) read the book Generations, you'll find out that that was (21) predicted, that this generation would be very repressive (22) about individual freedom and individual choice. (23) Q. Well, that's a very arguable debate you and I can (24) wage on political philosophy some day, and I would love to (25) do that with you outside of deposition. I think you're dead Page 451 (1) wrong about that, by the way. I think we've seen an (2) increase in an era of individual rights the likes of which (3) we've never seen, as witnessed by the fact that there's an (4) overload of litigation in the courts right now because (5) everybody says you owe me. (6) MS. BIXENSTINE: Objection. That's a speech. (7) MR. HOPPER: Q. So I think you are totally wrong. (8) Yes, it is. Exactly, Counsel. , (9) And I would ask you again, why you think the trend (10) line - and I'm just asking you the question from the (11) standpoint of you being a marketing senior vice president in (12) a major consumer products company. Why is your market (13) drying up for you? (14) MS. BIXENSTINE: Objection? (15/ THE WITNESS: The market- (16) MS. BIXENSTINE: Wait. Objection. It's (17) argumentative and it's been asked and answered. Go ahead. (18) THE WITNESS: The market is not drying up. I(t9) don't think that's a fair characterization. (20) And I - I choose to disagree with you. I don't (21) believe you're right. That I do believe that - and the (22) very cases you talk about reflect the lack of focus in this (23) country on individual freedom, individual responsibility and (24) individual choice. And I happen to believe I'm right on (25) that. Page 450 to Page 455 (1) MR. HOPPER: Q. Well, that's your - certainly (2) your prerogative. I think that if you're true to the (3) statistics and numbers which you have privilege to in your (4) business, that you could go back and look and see that from (5) 1965 to 1997 that the number of people who smoke dropped (6) from'40 percent to 26 percent. Now, you can argue with me (7) about that, but the numbers tell the truth. Isn't that (8) true? (9) A. I haven't looked that up. (10) Q. I can't believe you haven't looked that up. (11) MS. BIXENSTINE: Objection. That's not a (12) question. (13) MR. HOPPER: That's f(ne. (14) Q. Because you're a senior vice president in a(1S) consumer product company marketing products. You've risen (16) in the ranks. You're a very bright young woman, and I in my (17) wildest imagination can't believe that you don't know or (18) believe whether ' or not that the population of smokers has (19) declined from 40 percent to 26 percent from 1965 to '97. 32 (20) years. (21) A. I don't - I don't know those - (22) MS. BIXENSTINE: I'm sorry. That's not a (23) question. (24) MR. HOPPER: Q. Isn't it true that. that's the (25) case? Page 453 (1) A. I don't know those exact numbers. (2) I believe, as I already stated; that since I've (3) been with the company the number of:mokers - the number of (4) people in this country who choose to smoke has gone down. (5) Q. Thank you. (6) MS. BIXENSTINE: She said that a long time ago. (7) THE WITNESS: I said that. (8) MS. BIXENSTINE: Yes, she did. You'll see it. (9) THE WITNESS: I did. (10) MR. HOPPER: Q. Isn't it true that statistically, (11) 1200 people a day die from cigarette smoking? (12) A. No. (13) Q. 400,000 people a year? (14) A. No. (13) Q. You don't believe that? ( t 6) A. I don't - those - my understanding of bow those (17) numbers are calculated is It's a mathematical model and - (18) Q. And you believe that the Surgeon General and (19) scores and scores of pulmonoiogists and scores and scores of (20) cardiologists and the AMA and health professionals and (21) researchers and everybody are wrong about the 1200 people a (22) day who they claim die from cigarette smoking are wrong? (23) You don't believe them? (24) A. We don't know - (25) Q. You don't believe them? Page 454 (1) MS. BIXENSTINE: Objection. Let her answer the (2) question. (3) MR. HOPPER: Okay. (4) THE WITNESS: We don't know. Smoking is (S) statistically an increased risk in a number of diseases. No (6) one can answer that. (7) MR. HOPPER: Q. Could it be possible that the (8) reason that smoking has declined from 1965 to 1997 from 40 (9) percent to 26 percent is because of the number of people (10) quitting because those figures of people dying have (11) influenced them? Is that possible? (12) A. I believe I have already given you my - what I(13) believe has happened. And there has been broad awareness of (t4) the risks in smoking for a long, long time. The 30 years (15) you're talking about. (16) Q. Okay. You've testified to the fact that the adult (17) smoking population - adult, the word you used - has (18) declined, has dropped off. We could go back to the record (19) and read your exact words, but I think .you're in agreement (20) with me. Over that period of time. Correct? (21) A. Over the - (22) Q. You testified to that? (23) A. - the period of time I'm- talking about, right? (24) Q. Yes. Okay. (25) A. Since I've been with the company, yes. Page 455 (1) Q. Well, over the last 30 years you agreed with me (2) that- (3) A. No. (4) Q. - it's declined. (S) A. I did not. I said I don't know the number over - (6) Q. No. You said don't know the numbers, but you said (7) the trend has been in that direction, (8) A. I don't know if it has been for the whole 30 (9) years. Unless I looked at the numbers I wouldn't know (10) that. But I believe, you know, In general, there's been a(11) decline in the number of people smoking. (12) Q. Adult people, right? (13) A. Adult smokers. (14) Q. But adult people, right? (15) A. Adult smokers. (16) Q. Yes. (415) 392-0650 Tooker & Antz c5 n i u a,S,t) A I
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(11) A. But before you said the name you said something (12) about it being an R.J. Reynolds document. (13) Q. It is an R.J. Reynolds document. It's provided in (14) the Attorney General lawsuit against RJR and other tobacco (15) companies produced by R.J. Reynolds from their files. (16) A. Right. It was - it could have been in R.J. (17) Reynolds' file, I - (c 8) Q. I'm telling you that's what it is. ( c 9) A. Right. I didn't see any letterhead that suggests (20) this is an R.J. Reynolds generated document. (21) Q. I don't see any letterhead, either. I'm telling (22) you so that you will know that it was produced from your (23) company to that-as a request for production of documents (24) in that lawsuit so you do know that. (25) A. Right. It was in the company files is what you're Page 467 (1) saying. (2) Q. Yes. Exactly. And can you tell me what the (3) subject matter is on that document? (4) A. What the subject - (5) Q. Subject, colon. What does it say? (6) A. Teenage smokers (14 to 17) and new adult smokers (7) and quitters. (8) Q. Thank you. And what's the date on that document? (9) A. July 9th, 1980. (10) Q. And were you working for RJR at that time? (c1) A.No. ( t2) Q. When did you start to work for RJ R? (13) A. July 1982. (t4) MR. HOPPER: I would like to have this marked as (15) Plaintiffs Exhibit No. 3 in the Arch matter. (16) (Arch Exhibit 3 marked.) t 17) MR. HOPPER: Ms. Beasley, I would like you to take (18)a moment and look at that document, please. We'll go off (19) the record while she's doing so. (20) THE VIDEOGRAPHER: We're off the record at 11:52 (21) a.m. (-2) (Discussion off the record.) (23) THE VIDEOGRAPHER: We're back on the record at (24) 11:54 a.m. (25) MS. BIXENSTINE: And Ms. Beasley, if you eannot Page 468 (1) answer counsel's questions without haking more time to look (2) at the document, then you should request an opportunity to (3) fully study the document. Tooker & Antz -J ~ , •ul. LL •3/JVIy/ (4) THE WI'I'NESS: I will. (3) MR. HOPPER: Q. Ms. Beasley, I'm showing you a(6) document that has been marked as Arch Exhibit No. 3. Can (7) you tell me what the RE colon is, or the subject nutter, (8) title of this document is? (9) A. It says: Teenage and adult smoking attitudes. (10) Q. And what's the date on it? (11) A. 19 - April 9tb,1968. (12) Q. Okay. And in fact, it's a memorandum that was (13) produced by the R.J. Reynolds Tobacco Company in the (14) Humphrey action or captioned case in Minnesota. Isn't that ( t S ) correct? (16) MS. BiXENSTINE: Objection. Ms. Beasley is not (17) involved in the document production process. I would (18) stipulate that it's a document produced by the company, but (19) she's not-in a position to verify that or not. (20) MR. HOPPER: Thank you. That's fine. But she caa (2l) read. (22) MS. BIXENSTINE: That's - you can ask her if (23) that's what h states. (24) MR. HOPPER: Q. That is w6at it says, isn't it? (25) A. It says produced by RJRTC In Humphrey. Page 469 (1) Q. And I am reading from the first paragraph of this (2) document where it says: This will outline the kind of study (3) we would like to do on a semi-annual basis to obtain (4) consumer attitudes towards smoking, particularly as they (5) apply to the health issue. (6) MS. BIXENSTINE: If you want her to verify that (7) you read it correctly, you will have to give her the (8) document. (9) MR. HOPPER: I'm going to. (10) Q. Is that what that first paragraph says? (11) A. Yes. (12) Q. In the third paragraph down, would you read that. (13) please. (14) A. We plan to conduct 1,600 interviews: balf of the (15) sample will consist of teenagers (12 to 20) divided evenly (16) by sex, and the other half will consist of adults. (17) Non-smokers, as well as smokers will be included in this (18) sample. (19) Q. And the next to the last paragraph, if you would (20) read that paragraph, please. (21) A. Teenagers would be asked if they had received any (22) advice from an older person about smoking and, U so, what (23) that advice consisted or and when it was last (4 l 5"92-0650 XYAX/t'1 received. (24) They would also be asked what kind of person gave them tbls (25) advice, wbetber it be a paregit, a teacher, et cetera. Page 470 (1) Multiple answers would be elicited. (2) MR. HOPPER: Okay. Do you wait to take a quick (3) break? (4) MS. BDCENSTINE: Um-hmm. Thank you. (5) MR. HOPPER: Five minutes, please. (6) THE VIDEOGRAPHEB: • We are off the record at 11:58 (7) a.m. ' (8) (Brief recess in proceedings - 11:58 to 12:11 pm.) (9) THE VIDEOGRAPHER: We're back on the record at (to) 12:11 p.m. (I1) MR. HOPPER: Mrs. Beasley. l'm showing you - I'm (12) about to show you another docutnent. I would like to have (13) this marked as Arc6 Exhibit No. 4, please. (14) (Arch Exhibit 4 marked.) (1S) MR. HOPPER: Q. If you could take a moment and (16) look at that. (17) For the record. I'm showing Ms. Beasley what's (18) been marked as Arch Exhibit No. 4. If counsel wanu to (19) stipulate once again, we can, that this was produced by (20) RJRTC in the Humphrey matter. (21) MS. BIXENSTINE: Yes. (22) MR. HOPPER: Q. On the second page, Ms. Beasley, (23) would you read what the subject maner of this memorandum (24) is? (25) A. It says: Regarding Share of Smokers: By Age • Top Page 471 (1) Ten Brand Items. (2) Q. If you flip over to the second page, do you see a (3) category - categories of various brands of cigarettes to (4) the far left-hand margin? (5) A. Yes. (6) Q. And what are some of those brands? (7) A. Winston King and Box, Marlboro King and Box. Do (8) you want me to read them all? (9) Q. You don't have to read them all. Can you tell me (10) what the various age brackets are that are referring to the (11) share of those various brands as they're categorized? (12) A. I can't read this first one, the stamp b over it. (13) Q. Well, what does it look like to you? (14) A. It has a 4 and then dish. maybe 17. (ts) Q. Okay. You believe that Would be a 4 or do you (16) think that mi`ht be Page 466 to rage 471 51714 2157
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BSA Mangini v. R.J. they could (13) develop a loyalty to the first brand type of cigarette that (14) they smoke. (15) A. Yes, that's possible, I think. (16) Q. Could you read that first paragraph on that (17) document for me, for the record. (18) A. In response to your request, here are some details (19) of the strategic research group qualitative research in (20) August-September 1984, which led us to conclude that Camel (21) holds potentially leverageable interest among 18 to 20 year (22) old smokers (FUBYAS). (23) Q. Were you working for RJR at the time this document (24) was written? (:S) A. Yes. , Page 483 (1) Q. Does it accurately reflect the feeling of the (2) market research department that Camel brand did hold a (3) potentially leverable interest among 18 year olds? (4) MS. BIXENSTINE: Objection. Calls for speculation. (5) MR. HOPPER: She worked in the department at the (6) time. She worked there. I don't think it's speculation ar(7) all. She was on the team. (8) MS. BIXENSTINE: Objection. There's no testimony (9) that she was in the marketing research department at that (10) time. (11) MR. HOPPER: She was in the marketing department, (12) I said. She u•orked in the department. That's what I'm (13) saying. (14) INSS. BLXENSTINE: You were talking about marketing (15) research department. 116, MR. HOPPER: No, I was talking about the marketing (17) department. (t8) THE WITNESS: You said marketing research. (19, MR. HOPPER: No, I said she worked in the (_0) department at the time. : i) Q. Let's just - the question is predicated upon (22) the fact that you %%ere working in the marketing department (23) at the time. (_s) A. And the question (s - ,251 Q. Is that correct? Page 484 (1) A. I was working In the marketing department - (2) Q. Okay. (3) A. - at this time, yes. 14) Q. And the question is does it accurately reflect the (5) feeling of the market research department that the Camel (6) brand did hold a potentially ieverable interest among 18 to (7) 20 year olds? ' (8) MS. BIXENSTINE: Objection. Reynolds Tobacco Lynn Beasley, Vol. 12 - 5/30/97 Calls for (9) speculation. (t0) THE WITNESS: I don't know how the marketing (11) research department felt. (12) MR. HOPPER: Q. What was your job title at the (13) time? (14) A. In January of 1985, let's see. January of 198S I(13) was assistant brand manager on Camel. (16) Q. Okay. And you -you wouldn't have any clue what (17) the marketing research department's position was with (18) respect to the Camel brand then as the assistant brand (19) manager at that time? (20) A. I don't know what the marketing research (21) departmetit felt, no. (22) Q. Did you have meetings with them on some basis? (23) A. Meetings with the department? (24) Q. With people in the department? (25) A. With marketing research people? Yes. Page 485 (1) Q. Okay. How often did youmeet with them? Did you (2) meet on a weekly basis? (3) A. No, probably not. (4) Q. Would you meet on an every other weekly basis? (5) A. Could have been. I don't remember. It's (6) possible, but - (7) Q. Did you exchange documents and memoranda with (8) people in that department on a frequent basis? (9) A. No. (10) Q. You didn't communicate with them very frequently (11) at all? (12) A: No, I didn't say that. (13) Q. Okay. What did you do? (14) A. I believe when I was assistant brand manager on (15) the Camel brand, I worked on promotions. So my primary job (16) was developing promotions and creative for promotions and (17) promotion Ideas for the Camel brand. (18) Q. Did you look at research that - that was derived (19) from the - from the marketing research department in your (20) capacity as assistant brand manager? (21) A. Sometimes. (22) Q. Wasn't it shortly after this information became (23) known that Camel underwent an advertising renewal or, as you (24) call it, a repositioning to develop its market toward the 18 (23) to 20 year old - Page 486 (1) MS. BIXENSTINE: Objection. (2) MR. HOPPER: Q. - FUBYAS? (3) MS. BIXENSTINE: Objection to the form of the (4) question about .xwAxr:oi shortly after. (5) THE WITNESS: This was - I would not call it (6) shortly after. This was in January of 1985. (7) MR. HOPPER: Q. Okay. Why don't you give it a (8) specific time so that counsel's objection won't - (9) A. In June of 1987, when I joined the Camel brand, (10) the target for Camel was 18 to 24 adult smokers, secondarily (11) 25 to 34 adult smokers and current Camel adult smokers. And (12) my goal was to reposition Camel to appeal to that - those (13) three groups of smokers. And that would - this was back In (l4)1985, January 1985. (1S) Q. Right. (16) A. So - (17) MR. HOPPER: Okay. You've answered the question. (18) Would you mark this as Arch Exhibit No. 9, please, (19) (Arch Exhibit 9 marked.) (20) MR. HOPPER: Q. Ms. Beasley, I'm showing you what (21) has now been marked as Arch Exhibit No. 9. If you would (22) take'a moment and review that document, please. (23) Ms. Beasley, I'll let you read further if you need (24) to to answer any question I may ask. ' (23) If you look at the first page, please. Does this Page 487 (1) also appear to be a document that was produced by your (2) company in the Humphrey matter in Minnesota? (3) MS. BIXENSTINE: That's hard to read that. (4) MR. HOPPER: If you look at the last page it's a(S) little bit clearer. Excuse me. the next to the last page. (6) MS. BIXENSTINE: Yes. (7) MR. HOPPER: Page 2. (8) Q. Is the document marked RJR Secret on the front (9) page? (10) A. Yes. (11) Q. Why do you suppose it is? (12) MS. BIXENSTINE: Objection. Calls for (13) speculation. If you know, answer, please. (14) THE WITNESS: I don't know, but it's probably (15) because whoever wrote it thought it was - didn't want it (16) distributed to everyone because it's talking about Camel's (17) strategy. (18) MR. HOPPER: Q. It's probably a pretty (19) significant document, then, if it's marked with that kind of (20) a stamp, isn't it? (21) MS. BIXENSTINE: Objection. (22) THE WITNESS: I don't know. (23) MR. HOPPER: Q. I mean wouldn't you think it's (24) not just a document in the normal course of correspondence I Tooker & Antz Page 482 to Page 487 (415) 392-0650
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asA Mangini v. R.J. Reynolds Tobacco Lynn Beasley, Vol. Q- 5/30/97 smokers. ' (7) Q. Well, that's understandable. I think, as the way (8) you like to use the term adult. ; (9) So you, think that prime prospect group, then; (10) means what? (11) A. It was the - prime prospect group is the part of (12) the target, It's the most important part of the target. (13) Q. The 18 to 24 year old YAS? (14) A. The 18 to 24 younger adult smoker. (15) Q. Younger adult smoker, correct? (l6) A. Yes. (17) Q. What do you think outside the prime prospect group (18) means? (19) A. The 2S to 34 adult smoker. (20) Q. Okay. As the campaign was rolled out I believe (21) you said in - (22) A. 1988. (23) Q. '87-88? (24) A. 1988. (25) Q. Okay. Didn't you actually start some promotions Page 494 (1) in late '87? (2) A. I don't think so. It's possible, but I don't,(3) think so. (4) Q. Isn'k it true that once you repositioned Camel in (5) the new campaign that it - while you were focusing on the (6) prime prospect group, that it could have reached people 25 (7) to 35? (8) A. In fact, we were targeting that group, as well. (9) That was part of the target, was 25 to 34 adult smokers. We (10) were trying to reach them and we did development research (11) among them. (12) Q. Did you get any research or determine that it in (13) fact reached people in the 25 - 25 to 35 age group? (14) A. Yes. ,15) Q. Was it effective? (16) A. Yes. (17) Q. What about in the 35 to 50 year age group? i 18) A. We looked at Camel smokers of all ages, 18 to (19) whatever. And among Camel smokers it was appealing. t (:o) Q. Doesn't it stand to reason and isn't the logic (21) true that if it had an impact and effect of reaching beyond (22) the prime prospect group going toward the older smokers, (23) that it had an effect going below 18? (24) A. I - I didn't say it went beyond the prime (25) prospect group, first of all. I said that we had a primary Page 495 (1) prime prospect group of 18 to 24 adult smokers, secondary (2) prospect group of 2S to 34 adult smokers and Camel smokers (3) of all ages, and that In fact we confirmed the caropaign (4) appealed to those three groups. (5) Q. And isn't it - isn't the logic true that (6) necessarily if it's going to reach beyond the prime prospect (7) group of 18 to 24 year olds. to reach older persons, that it (8) would necessarily reach younger persons, as well? (9) A. No. We specifically dealt - developed the (10) campaign to appeal to 18 to 34 adult smokers. (11) Q. I understand that's what you say. But isn't it (12) true that the campaign, while it had an effect of going (13) beyond the prime prospect group of age 24 - 18 to 24 and (14) reaching older people, that it necessarily would have (15) reached younger people, as well? (16) A. No. We specifically developed the campaign to (17) appeal to 18 to 34 adult smokers. We developed It for that. (18) Q. I understand that that's what you developed it (19) for. Okay? (20) Isn't it true that it could have had the impact of (21) reaching persons younger than that age group. If it (22) necessarily reached people older and exceeded the prime (23) prospect group, isn't it logically true it could have (24) reached younger than 18? . (25) MS. BIXENSTINE: Can you define what you mean by Page 496 (1) reach? (2) MR. HOPPER: No, I can't. (3) MS. BIXENSTINE: I object. It's vague. (4) MR. HOPPER: That's fine. (5) THE WITNESS: Whtt do you mean by reach? (6) MR. HOPPER: Q. Just follow the logic. (7) MS. BIXENSTINE: Objection. (8) THE WITNESS: Tell me what you mean. (9) MR. HOPPER: Q. No, you tell me what it means. (10)•You are the marketing senior vice president. You tell me (11) what it means when a campaign reaches an audience. (12) MS. BIXENSTINE: Objection. (13) THE WITNESS: Reach to me is someone aees it. (14) They're exposed to it. (ts) MR. HOPPER: Q. Thank you. Isn't it necessarily (16) true that people younger than age 18 were reached by the Joe (17) Camel repositioning campaign on Camel? (t8) A. When we ran the advertising, did people under the (19) age of 18 see It? Yes. (20) Q. Yes. That's the question. And it XMAX(--) reached them. (21) didn't it? (22) A. People - obviously, when we ran the campaign, we (23) ran on billboards, people of all ages saw those blUboards (24) and were exposed to the advertising. (25) Q. And it was - the Joe Camel was emblazoned on the Page 497 (1) side of race cars at the NASCAR, wasn't it? (2) A. No, not in 1988 It wasn't. (3) Q. Okay. But it was eventually, correct? (4) A. We - we did start a sponsorship of a NASCAR (5) Winston Cup car later on. (6) Q. And do families go to that? (7) A. The attendance at NASCAR races Is 9S percent (8) adults. (9) Q. Isn't it true that that race is - is shown on (10) television? (11) A. I believe the races are televised. (12) Q: On the second page of that document, if I could (13) focus your attention on the paragraph under number 4 where (14) it says General Creative Guidelines, the second bullet (IS) point, in the last part of that section (16) A. I'm sorry. I don't know where you are. (17) Q. Under number 4. (IS) A. Okay. (19) Q. The second bullet point. (20) A. Yes. (21) Q. In the last part of that, that sentence reads: (22) Additionally, the exploratory will cover approaches which (23) employ universal cues and symbols that effectively (24) communicate the strategies and motivational value that (25) transcends demographics. Page 498 ' (1) What does that mean? (2) A. I think what it means Is that they Intended to (3) appeal to the 18 to 24 adult smoker as well as 25 to 34 (4) adult smoker. (5) Q. And isn't it necessarily true logically when, you (6) position that - repositioned Camel into the marketplace, (7) isn't it logically true that If you reached and people older (8) than your prime prospect group saw it. that people younger (9) than your prime prospect group would see it? (l0) A. This document is not about- (li) Q.No.Ijust- (12) A. Camel - Joe Camel. (13) Q. - answer - (14) A. I thought that was your question. You said when (t5) you repositioned Camel with the Joe A Page 493 to Page 498 (415) 392-0650 Tooker & Antz 5 r+A a i-5a A
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•SA (25) or communication if it's marked secret, corTCCt? Page 488 (I) A. I think because it covers brand strategy that's (2) probably why they marked it secret. (3) Q. So it must be significant? (4) MS. BIXENSTINE: Objection. (5) THE WITNESS: Again, I think it's because it was (6) about brand strategy they probably marked it secret. (7) MR. HOPPER: Q. The fact that it's about brand (8) strategy. though, at the time that the document was written (9) in 1986. makes it a significant document, though. Isn't (10) that correct? ( I 1) MS. BIXENSTINE: Significant at that time? Or (12) now? (13) MR. HOPPER: Yes. (14) MS. BIXENSTINE: At that time? (1s) MR. HOPPER: Yes. (16) THE WITNESS: No. I don't know. (17) MR. HOPPER: Q. Do you have any thoughts about (18) whether it could be significant since it's marked secret? (19) A. It could be. (20) Q. And who is the - who's the memorandum written to? (21) A. To Mr. D.N. lauco. (22) Q. And can you tell me by looking at the last page (23) who it's written by, who authored this memo? (a) A. R.T. Caufield. (:5) Q. And you testified yesterday. I believe, that he Page 489 (1) was your boss? (:) A. Um-hmm. Yes. ~ 3) Q. And that was true in 1986? (4) A. No. It wasn't true in 1986. (5) Q. Did you - you were assistant brand manager in (6) '85? Is that correct? (7) A. Assistant brand manager of ,Camel 10-84 to 8-85. r e) Q. Okay. Then in '86 what would y our position have (9) been? ~ 10) A. Brand manager, Century brand. (1 I i Q. Okay. Had Mr. Caufield been your boss in '85. (12) then? (131 A. Yes, he was my boss in 1985. . 114) Q. And who is - what position did `tr. lauco hold at (1S) that time? (16) A. In 1986 when this was written? (17) Q. Yes. () 8) A. You know, I'm not sure. He was - I think maybe (19) he was over several brands, like maybe a group director, but - (20) Q. Okay. What's the date on the document? (:1) A. March 12th, 1986. (=:) Q. Would you read for me in the - RoynO/aa tuoacc0 Lynn Beasley, v01. Q-S/30/97 YYAxri/ what the title of (23) the memorandum is? (24) A. Camel New Advertising Campaign Development. (25) Q. Would you read the first pari$raph for me. Page 490 (1) A. This forwards the Brand Group's recommendations (2) covering key aspects of the Camel's new advertising campaign (3) development project including: 1, target audience (4) definition; 2, advertising objective; 3, strategic approach; (S) 4, general creative guidelines; 5, copy strategies and (6) rationale, and 6, next steps/timing. (7) Q. If you go to 1, then, which it references in that (8) paragraph you just read, it's titled Target Audience. Is (9) that correct? (10) A. Yes. (I1) Q. I would like to direct your attention further down (12) into that paragraph to the far right margin beginning with (13) the word 'however.' Do you see that? (14) A. Yes. (15) Q. Pardon me. If I could direct your attention to (16) the second sentence in that paragraph, beginning with the (17) word 'this.' (18) A. "This"? Um-hmm. (19) Q. Would you mind reading that sentence for me, (20) please? (21) A. This recommendation is based on consideration of (22) the marketplace dynamies which are perpetuating Marlboro's (23) growith (24) (Interruption by reporter.) (23) MR. HOPPER: Q. I tell you what. why don't you Page 491 (I ) read - it makes it easier - read the paragraph until I ask (2) you to stop, if you would, beginning with 'It is (3) recommended.' (4) A. It is recommended that creative efforts reflect a(S) primary focus on developing advertising which ia highly (6) relevant, appealing and motivational to 18 to 24 male (7) smokers. This recommendation is based on consideration oft8) the marketplace dynamics which are perpetuating Marlboro's (9) growth, (i.e., brand ioyalty and peer influence) and which (10) strongly suggest that repositioning Camel as the relevant (11) brand choice for younger adult smokers will be critical to (12) generating sustained volume growth. However, recognizing (13) the volume potential associated with advertising wbich is (14) broad based ia appeal, the creative exploratory will (1S) emphasize approaches which employ universal cues and symbols (16) having motivational value outside of the prime prospect (17) group as well. (18) Q. What are - what is the creative exploratory? (19) A. That's where you have an idea of the positioning (20) you want for a brand, and then you go to an agency and you (21) ask them to start developing campaigns around that idea. (22) Q. Is that what was done on Camel at the time? (23) A. I don't know. I wasn't on Camel during this time (24) period. (2S) Q. Is that what ultimately was done on Camel, that Page 492 (1) same kind of process, for.the repositioning? , (2) MS. BIXENSTINE: Ultimately in June of'87? (3) MR. HOPPER: Yes. (4) MS. BIXENSTINE: When she came on the brand? (5) MR. HOPPER: Yes. (6) THE WITNESS: When I was senior brand manager of (7) Camel in June of 1987, that's a process I went through. (8) MR. HOPPER: Q. All right. What do you think (9) that employing universal cues and symbols mean? (10) A. I think that would mean having things in the (11) advertising that are appealing to most people in the target (12) audience. (13) Q. What do you think having motivational value means? (14) A. It means that it's meaningful to people. The (15) advertising is meaningful. (16) Q. Okay. And what do you think the sentence means, (17) outside of the prime prospect group. (18) A. The 25 to 34 adult smokers. (19) Q. Okay. It's pretty evident from this document and (20) from what you've testified to earlier that the Camel (21) repositioning was targeted toward the 18 to 24 year old YAS, (22) correct? (23) A. It was - again - (24) Q. That calls for a yes or no question or - (25) A. No. Page 493 (I) Q. -or excuse me. answer. (2) A. No. (3) Q. It was not targeted toward 18 to 24 year olds? (4) A. That was part of the target. (5) Q. Okay. (6) A. 18 - :use me, 18 to 24 adult Page 487 to Page 493 Tooker & Antz (415)-492•0650 51714 2159
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esA Mangini v. R.J. Reynolds Tobacco (4) use of cigarettes? (5) A. An Internal document in the 19S0s? (6) Q. Yes. Did it ever come to your attention later (7) when you worked in the marketing department that RJR knew (8) about the health hazards related to the use of cigarettes as (9) far back as the 1950s? (10) MS. BIXENSTINE: Objection to the form of the (11) question. (12) THE WITNESS: I don't remember (13) MR. HOPPER: One second. What's the improper (14) form? (15) MS. BIXENSTINE: That the company knew about the (16) health hazards. I'm not sure what you're referring to. (17) MR. HOPPER: So your objection is? (18) MS. BIXENSTINE: Vague. (19) MR. HOPPER: Okay. So it's not objection as to (20) the form of the question, then? (21) MS. BIXENSTINE: The question in its form is (22) vague. (23) MR. HOPPER: Okay. You don't understand it? (24) MS. BIXENSTINE: Right. (25i MR. HOPPER: Okay. Page 505 (1) Q. Do you understand the question? 1 (2) A. No: (3) Q. Okay. Let me ask it again. (4) You worked in the marketing department for quite (5) some time, and still do arguably, even though you're.a (6)•seniofofficer in the company. (7) A. Right. (8) Q. Not to take anything away from that. Did it - (9) has it at any time that you've been involved in marketing in r t o) the company come to your attention that as far back as the (11) ; 950s that your company knew about the health hazards (12) related to the use of;.iEarettes? ,13) MS. BIXENSTINE: Objection. ; 14) MR. HOPPER: You've already got the objection. (151 You're there. , 16) MS. BIXENSTINE: Okay. I'm restating my (17) objection. 119) MR. HOPPER: You're there. (19) THE WITNESS: I don't know. I have never heard (20) anything like that. t .1) MR. HOPPER: Q. Were the health risks or health (22) hazards associated with smoking ever discussed at all in ihe (23) marketing department at RJR? (24) A. I - obviously, we put warning statements on our (25) pack and warning statements in the advertising. And those Page 506 Lynn Beasley, Vol. II • 5/30/97 xwAxaa (1) warning statements reflect the risks associated with (2) smoking. So to that extent we were obviously - we (3) discussed the warning statements and the placement of the (4) warning statements. (5) But in - outside of that, discussions in the (6) marketing department? I don't recall: (7) Q. You were aware of the fact that there are health (8) hazards and health risks associated with smoking, correct? (9) A. I was aware that smoking is a risk factor in a (10) number of diseases. (11) Q. As you organized promotions or organized (12) advertising campaigns in the marketing department, were the (13) health concerns about smoking ever discussed as you (14) organized those campaigns? (15) A. I don't recall discussions. (16) Q. So they didn't take place? (17) A. I don't recall. (18) Q. You can't remember? (19) A. I can't remember having the discussions. I don't (20) recall. (21) Q. Did it ever - was it ever discussed in the (22) marketing department as you were repositioning Camel that by (23) using an illustrated cartoon character that it might have (24) some appeal to people under age 18? (25) A. It's not an illustrated cartoon character. Page 507 (1) Q. Well, I heard what you testified to yesterday that (2) it is, but it's considered to be an animated character, an (3) animation type character of a camel, correct? (4) THE WITNESS: It's an illustrated trade character. (5) Q. But it appears - (6) A. And - (7) Q. Sorry. (8) A. An illustrated cartoon character would be a (9) cartoon, like the Pink Panther that they use to advertise (10) Owens-Corning's insulation. The Pink Panther was in a (11) cartoon. (12) Snoopy advertises Met Life Insurance. That's a (13) cartoon figure. (14) Mr. Clean that advertises cleaning products Is not (15) a cartoon character. He's an illustrated trade character. (16) Q. If I'm five years old, if I'm nine years old, do (17) you think that I have ' the presence of mind to render a (18) judgment as to whether that Camel is an illustrated (19) character or a cartoon character? (20) A. I think you would know a Page 504 to Page 509 (415) 392-0650 difference if you bad (21) seen a character in a cartoon. (22) Q. Oh. you do, hmm? (23) A. Yes. (24) Q. Oh. I see. You think as a five year old or a nine (25) year old that I am going to sit there and distinguish Page 508 (1) between what is an illustrated character and a cartoon (2) character? That's your testimony today? (3) A. That is not what I said. I said (4) Q. Should we go back and read it? Let's do. (5) MS. BIXENSTINE: Don't cut her off. (6) MR. HOPPER: I'm not cutting her off. I want to (7) go back to the record and read exactly what her answer was, (8) Court Reporter. (9) MS. BIXENSTINE: You did cut her off. She was (10) explaining what she said. (11) MR. HOPPER: We don't have to have her explain (12) it. We'll go back and have the read court reporter read (13) exactly what she said. (14) (Testimony read as follows: (15) Q. If I'm five years old, if I'm nine years (16) old, do you think that I have the presence of mind (17) to render a judgment as to whether that Camel is (18) an illustrated character or a cartoon character? (19) A. I think you would know a difference if (20) you had seen a character in a cartoon.) (21) MR. HOPPER: Thank you. No further questions on (22) that matter. (23) Q. Do you believe that nicotine is addictive? (24) A. I don't believe that the word addiction is - has (25) a clear meaning anymore in our society. To me, I do not Page 509 (1) believe that cigarettes are addictive. They are not like (2) cocaine, where you lose your ability to function normally (3) and make rational Judgments and you need ever-increasing (4) doses to maintain the same effect, and there are severe (5) withdrawsls. I have seen people, who have become addicted to (6) cocaine, and cigarettes are not like cocaine. (7) Q. Okay. That's interesting, because that's the very (8) same song and verse that your colleague Mr. Pennell told me, (9) too. (10) MS. BIXENSTINE: Objection. (11) MR. HOPPER: Q. Question is this: From a (12) neurochemical standpoint. do you have any knowledge or (t3) Tooker & Antz 51-410 QIcpoA
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solely through switching in any brand that you're (7) aware of' (8) A, Jn order to jaia - yes, of course we've t;ained (9) share from switching. Is that what you asked? (10) Q. Only through switching. Not through - not ()1) through encouraging first usual - first brand young adult (12) smokers. (13) A. Look, that - that's switching. "'hat we track is (14) our share of smoker, and we track adult smokers and what (IS) brand they choose. So - and that's what we have. (16) Q. So first usual brand young adult smokers are (17) switchers? (18) A. We- (19) MS. BLXENSTINE: Objection. Mischaracterizes her (20) testimony. (.1) THE WITNESS: We don't - the only thing we track, (22) there's no such thing as tracking that. We track adult (23) smokers and what brand they choose. (2s) MR. JANECEK: Q. We're not talking about (25) tracking. We're talking about attracting. Page 521 (1) MS. BIXENSTINE: Objection. (2) MR.IANECEK: Q. You had testified earlier that (3) one of the target markets for Camel cigarettes and the (4) cigarette - well, Camel cigarettes, was first usual brand (5) young adult smokers. (6) MS. BIXENSTINE: Objection. (7) THE WITNESS: No, what I said was the target for (8) Camel - and I did the campatgn - was 18 to 24 adult (9) smokers. 25 to 34 adult smokers and current adult Camel (10) smokers. i t t t MR. JANECEK: Q. Then what is a first usual brand (12) young adult smoker. then? (13) MS. BiXENSTINE: Objection. Asked and answered. 114) THE WITNESS: Afirstusualbrand young adult (1S) smoker is a young adult smoker who smokes daily but it has r t 51 not yet formed a strong loyalty to a brand, a particular (17) brand. -t8, :4 R. JANECEK: Q. Okay. And R•J. Reynolds Tobacco (19) Company is not interested in tracking - in attracting (20)' FL.'BYAS'' t:1) A. I didn't say that. i:-) Q. Well, is that a market that you're - a market (23) segment that you're trying to attract out of the 18 to 24 (24) year old adult smokers? (a) A. We're trying to attract switcbers from other Page 522 (1) brands and maintain loyalty of our brand. And that - when (2) we say 18 to 24 adult smokers, that includes Tooker & Antz !L-Yan aeasley, vot. U - 1150/97 adult smokers (3) aged 18 to 24 wherever they are on that loyalty continuum. (4) It may be not loyal at alt to a brand, they may be very (5) loyal to a braod. (6) Q. And there's not a different way that you would (7) market to a first usual brand young adult smoker than you (8) would to an - otherwise to a switcher? (9) A. No. You market to 18 to 24 adult smokers, 2S to (10) 34 adult smokers. You develop programs for them. (11) It's not like we do research aad can screen for (12) that. (13) Q. So the same things - the same advertising would (14) be effective with respect to a person that's a daily smoker (t5) using your definition that has not selected a first usual (16) brand and a person that's a competitive smoker? (17) A. Again, what we do - (18) Q. The question is, is there any difference in what (19) you do between those two categories of individuals? (20) A. I don't know, because I don't - when I do (21) development research I don't go around the room in a focus (22' ;roup and say, you know, "You, how loyal are you to your (23) brand?" You know. Ttte next person, "How loyal are you to (24) your brand?" (25) 1 sit down with a group of 18 to 24 adult smokers,. Page 523 (1) more recent since '92, 21 to 24 adult smokers, and say, (2) "What do you think of what we have here? And how do you (3) think It compares to the competition?" (4) Q. So there's no - your testimony is then, if I bear (S) you correctly, that there is no difference in how you (6) approach marketing to a first usual brand young adult (7) smoker - (8) A. I didn't say that. (9) Q. Wel:. then is - (10) A. I said I don't differentiate between them. (11) Q. So you don't know if there's a different way to (12) market to first usual brand young adult smokers than to (13) other competitive smokers? (14) A. That's correct. (15) Q. So there's - but you have never, in running the (16) Camel brand, tried to attract first - done anything to try (17) to attract first usual brand young adult smokers as opposed (18) to loyal competitive smokers? (19) MS. BIXENSTINE: Objection. It's vague, and 1(20) believe it's been asked and answered. (2t) THE WITNESS: Again. we're trying to generate (22) switching among adult (4153.392-0650 \.rAA.:n ' 18 to 24 smokers, And I don't (23) differentiate between the two. I can't - 1 couldn't tell (24) you what differences there were. (25) MR.IANECEK: Q. So you haven't run any different Page 524 (I) typ:s of campaigns to attract one over the other? (2) A. No. (3) Q. What's a new adult smoker? (4) A. I don't know. Are you reading It from a specific (5) document? (6) Q. You've never heard that term before? (7) A• New adult smoker? Those are three words that I'm (8) familiar with. I don't know - I would have to hear it In (9) context to know what It meant. (10) Q. Is there - is that term used by you in your (11) course of business? (12) A. No. , (13) Q. You've never used the term new adult smoker? (14) A. No. (1S) Q. You've never heard anyone at R.J. Reynolds Tobacco (16) Company use the term new adult smoker? (17) A. No, I wouldn't say that. Again, /t's three common (18) words, you know. It depends. It could be someone who - an (19) adult who has become a daily smoker, and you could say - (20) and they weren't a smoker a year ago and they're a daily (21) smoker now. They could be a new adult smoker. (22) Q. And you just wouldn't know what a new adult smoker (23) is? Let's turn to page 6214, (24) A. Yes. (25) Q. You see that the objective section up there, the Page 525 (1) title of this page? (2) A. Yes. (3) Q. All right. And can you read what the first line (4) is, what the objective is? (5) A. This YAS line? Is that what you're talking about? (6) Q. No. To identify. (7) A. To Identify the relative Importance of key target (8) segments in terms of their contribution to RJR's long term (9) and short term goals. (l0) Q. So that's the objective. is to identify key target (t 1) segments? (12) MS. BIXENSTINE: Objection. The document speaks (13) for itself. Move on. (14) MR.IANECEK: Q. You can answer the question. (15) MS. BIXENSTINE: Objection. (16) THE WITNESS: What ..~ tne question? Pagc 520 to I'age S:S 51714 2162
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BSA Mangini v. R.J. Reynolds Tobacco Lynn Beasley, (17) MR. JANECEK: Q. The question is, is that the (18) objective, as reflected on this document? (19) A. That's what this document says. (20) Q. And then the document goes on to identify key (21) target segments. What are those? You just - (22) A. It says younger adult smokers, switchers, (23) occasional use. (24) Q. Now, with respect to the younger adult smokers, (25) how does this document refer to younger adult smokers? Page 526 (1) A. It says: Nearly all new adult smokers are younger (2) adult smokers who are choosing a first usualbrand. (3) Q. Okay. Now you've got the context of where new (4) adult smokers comes from,. (5) A. Um-hmm. (6) Q. What's a new adult smoker in that context? (7) A. I'm not sure. What it sounds like it means is (8) that for smokers who take up smoking as adults, become daily (9) smokers as adults, they are mostly younger adult smokers. (t0) Q. So that older individuals don't necessarily become (I i) new smokers? (12) A. I'm not saying that's true. I'm saying that's (13) what I think they're saying here. (14) Q. And you disagree with that? You think older (15) indiv:duals do regularly become new smokers? (16) MS. BIXENSTINE: Objection. What do you mean by (17) regularly? (18) THE WITNESS: The average age of daily smoking is (19) between 18 and 19. 1 don't know what percent of the (:o) population becomes smokers after age 25. I haven't looked (21) at that. (::) MR. JANECEK: Q. Would you a: ree with this (23) statement that nearly all new adult smokers are young adult (24) smokers? r:5 , A. I don't know. Page 527 (1) Q. 1'ou don't - f:) A. I haven't looked at it. (3) Q. You have no basis to conclude one way or another? (s) A. I don't - I don't have a basis to conclude that. (5) Q: ou have no opinion on that? r A. Joa I don't know. ( s Just that concept's foreign to you? (8) MS. BIXENSTINE: Objection. Asked and answered. (9) Three times. (10) THE WITNESS: I didn't say - I 7 didn't say the (11) concept was foreign. I don't know. I don't have a basis to (12) make a conclusion on it. (13) MR. JANECEK: Q. You can't estimate? (14) MS. BIXENSTINE: You know, you're not going to get (15) her to change your opinion by, you know, being flip and (16) argumentative and feigning surprise. (17) I'm objecting. It's asked and answered three (18) times. (19) MR. JANECEK: Q. You can answer. _ (20) THE WITNESS: I don't have a basis to. (21) MR. JANECEK: Q. You have no opinion? (22) MS. BIXENSTINE: Objection. Asked and answered. (23) THE WITNESS: I do not have a basis - (24) MR. JANECEK: No, the question is do you have an (25) opinion. And the answer is "I don't have a basis.' Page $28 (t) MS. BI,XBNSTINE: You.re just trying to stretch (2) this out and stretch this out. I - you know, I gueas you (3) have nothing better to do. But you're wasting everybody (4) else's time. (5) MR. JANECEK: Q. Now, you testified that a first (6) usual brand young adult smoker was a smoker that's a daily (7) smoker that uses more brands than one, doesn't - isn't (8) loyal to any one particular brand. Is that correct? (9) A. No. That's not what I said. (10) Q. What is - explain it to me. (11) A. What I said was it's someone who is a daily - an (t2) adult who is a daily smoker but has not yet formed a loyalty (13) to a brand. (14) Q. So he or she pprchases more than one brand? (15) A. No, they don't necessarily purchase more than one (16) brand. They may only be purchasing one brand, but they're (17) not loyal to it yet, _ (18) Q. So they - they - there can be people that have (19) smoked, for example, Camels for 20 years but they haven't (20) selected if as a first brand? (21) MS. BIXENSTINE: Objection. (22) THE WITNESS: You mean first usualbrand? (23) MR. JANECEK: Q. First usual brand, yes. (24) A. If someone is not - it 1fJ someone wasn't loyal, if (25) ' someone smoked Camel for 20 years a*M would assume that Page 529 (t) they're loyal to Camel. Vol. II - 5/30/97 xMAxr.U (2) Q. When do you - at what time point do you assume (3) that a - someone has selected a first usual brand, they're (4) loyal to a brand? (5) A. We don't. The measure we have of loyalty is share (6) of requirement and attitudinal measures. Is it - "What (7) brand do you consider your usual brand? And how much - how (8) much of your purchases do you give to that brand?" (9) Q. So let me ask you this: If in a focus group you (10) asked that question to - to a smoker, a 34 year old smoker, (11) if that's the high end, and he said 'I've smoked Camel (12) cigarettes since I was 18, but, you know, I'd switch in a (13) heartbeat,' you wouldn't call him a loyal Camel cigarette (14) smoker? (15) A. He - now, your - your hypothetical here Is (16) someone has smoked Camel from 18 to 34. (17) Q. Right. So - (18) A. And now they're saying. (19) Q. - 12-, 15 years. (20) A. - I will switch, I intend to switch or I - (21) Q. They'll say 'I smoke Camels but it's not my usual (22) brand.' (23) A. This then they're not loyal (24) MS. BIXENSTINE: Objection. You changed the (25) question. Page 530 (1) MR. JANECEK: Q. Then they're not first usual (2) brand young adult smokers - or they're not first usual (3) brand smokers. (4) A. Really, you've confused me.. You said we were (5) hypothetically talking about a person who was 34 years old (6) and was smoking Camels since 18 and said what? (7) Q. And said that it wasn't his usual brand or her (8) usual brand. (9) MS. BIXENSTINE: You said - (10) THE WITNESS: But you just said - (11) MS. BIXENSTINE: - "I'd switch in a heartbeat" (12) before. (13) THE WITNESS: But you said they've been smoking (14) Camel from 18 to 34 years. You're saying if they'd been (15) smoking Camel and we asked them "What's your usual brand' (16) unless they'd only been smoking it some of the time and (17) something else. (18} MR. JANECEK: Q. Well, that's my question. At (19) what point in time do you make the determine - (20) determination that regardless of what they say they're a (21) usual brand smoker? (22) A. It's not regaratess of what they say. We ask me (23) people, Tooker & Antz Page 52S to Page 530 (413) 392-0650 51~1~4 a~10 P i
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BSA Mangini v. R.J. (22) (Eaamination of tbe Witnesa in the Mangini case (23) resumes.) (24) THE VIDBOGRAPHER: We are back on the video record (25) at 2:27 p.m. Page 515 ReZoolds Tobacco Lynn Beasley, Vol. II- 5/30/97 xMAx,:6) as I was ever the (17) person in seen this (12) type of document before, charge of writing It, but - a document that look like this? (t8) Q. Who would write one of these? (13) A. I don't recall seeing this (19) MS. BIXENSTINE: Objection. document before. (20) A. I don't - (14) Q. This isn't the typical way that (21) MS. BIXENSTINE: You mean by you - that (13) documents are position or pe,rson? presented to you in your capacity at (22) MR. JANECEK: Q. By position. (16) R.J. Reynolds Tobacco Company? (23) A. We have a vice president of (17) A. You know, when you strategic or strategic (24) planning, generalize to all documents, I(18) planning, don't know what you mean. (25) ~. Is that a separate group? (19) When you said strategic plan Page 517 situation analysis, (20) this - a (1) A. At times. It just depends, you strategic plan situation analysis know, the (2) organization has shifted usually doesn't (21) look like this. over time. (22) Q. And you haven't seen anything (3) Q. When - when was there this that does look like (23) this? vice - this strategic (4) group or this (24) A. I don't know what you mean vice president of strategic planning? by looks like this. (25) You mean What (s) time period? typed in a horizontal format or - (6) A. Back in 1987. i think it was Page 519 called strategic (7) planning. 1988 - (1) Q. Typed - yes, this.typeset, this '87, 88, I think it was called strategic presentation (2) format. (8) planning. And I don't recall - I 43) A. Sure, I've seen presentations can't recall who was in (9) the job. I in this format, put (4) this way on the just - I don't know. page. ( i0) Q. So this is the type of document (S) Q. So this - this is not a format that that strategic (11) planning would is foreign to (6) R.J. Reynolds Tobacco typically draft? Company? (12) A. I don't know !f they did or not: (7) MS. BIXENSTINE: Objection. I don't know (13) about this one. I (8) THE WITNE S: It' tt's - you don't know who:did it. ~ know, a format.4~ihorizonful on the m EXAMINATION BY MR. JANECEK (Continued) (2) MR. JANECEK: Ms. Beasiey, I will have the court (3) reporter hand you a document which will be marked as (4) Piaintiff s Exhibit No. 20. (5) (Exhibit 20 marked.) (6) MR. JANECEK: Q. I just want to see if you've (7) seen this document before. (8) A. I just need a few minutes to review it. (9) Q. Ms. Beasley, have you seen this document before (10) today? (1 t) A. Just give me one more minute to look through it. (12) MR. JANECEK: Kim, I'm fully prepared to let her (13) read the documents to answer the question if she's seen them (14) before. But I will note that it's taking an inordinate (15) amount of time, and if you guys are concerned about speeding (16) it up, I'll let her go, but - (17) THE WITNESS: I don't remember it. (18) MR. JANECEK: Q. Have you seen this type of (19) document before? (_o) MS. BIXENSTINE: Objection. (21) MR. JANECEK: What's the objection? . (:2) MS. BLXENSTINE: Vague. What type of document? (23) What do you mean by this type of document? (24) MR. JANECEK: Q. The one that's directly in front (25) of you that you've been looking. Page 516 (1) MS. BIXENSTINE: But what do you mean by the type (2) of document? (3) MR. JANECEK: Q. That's the type of document. (4) MS. BIXENSTINE: It's vague. ;5) MR. JANECEK: Q. You can answer. Have you seen (6) that type of document before? (7) A. I don't know what you mean. What kind - what (8) type of document do you mean? (9) Q. What's the title to the document? (10) A. It says Strategic Marketing Plan Situation (11) Analysis. (12) Q., Have you seen strategic marketing plan situation (13) analyses before? i (14) A. Yed. (15) Q. Have you prepared these types of analyses? (16) A. I've contributed. I don't know Page 514 to Page 520 (14) Q. But you've seen these types of - Qe with presentatt'onJTVe. documents. (15) strategic plans? (10) MR. JANECEK: Q. Something (16) A. Not - you know, this doesn't • they - they use. that (11) type of make sense to me (17) because this presentation type? doesn't look like a strategic plan (12) A. Who uses? situation (18) analysis. Usually that's (13) Q. R.1. Reynolds Tobacco a real detailed view of the (19) • Company? marketplace, brand shares and lots (14) A. Well, again, you can't of detailed information. (20) And so It generalize to R.J. Reynolds (15) doesn't look like that kind - that's Tobacco Company. Have I seen the title of (21) It, but it doesn't look presentations prepared by (16) like that kind of a document to me, Individuals that horizontally on the (22) so I don't know. I don't see page in presentation (17) format? anywhere on this where It said (23) Yes. who wrote it or who it was to or when (18) Q. Mrs. Beasley, if you could turn it was done, so i(24) don't know. to page 205. (19) actually, it might be (25) Q. During what time frame would easier to use the top right-hand (20) you have seen corner, which would be 6213? Do you Page S18 see the last four (21) numbers? (1) documents similar to these? (22) A. Yes. (2) MS. BIXENSTINE: Objection. (23) Q. You had testified earlier that you Similar to what she (3) said she usually thought it (24) was - R.J. Reynolds sees as strategic marketing plan Tobacco Company was capable of situation (4) analyses? Or like this one? gaining (25) market share through (5) MR. JANECEK: Q. Like this one. switching. Is that a fair (6) A. Again, I don't know. This Page 520 does not look like the (7) strategic (1) characterization of your testimony? plan situation analyses that I've (2) A. Yes. seen. The kind (8) of thing I'm talking (3) Q. Is it easy to gain market share about Is much more detailed and has through switching? (9) much more information in it. (4) A. It's not easy to gain market (10) Q. Right. I'm not necessarily share. concerned about the -(11) that one. (S) Q. Has R.J. Reynolds Tobacco I'm ,talking about this, so you've never Company gained ma ' st (6) share (415) 392-0650 Tooker & Antz 4
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.3A xeyn0tas 'tooacco Lynn Beasley, Vol U- S/30/97 xy„xr„ Wbat's your usual brand?" Aad they loyal category, (14) as most bullet poinu. IOR bas (6) decline and tell us. consumer products are. Camel grew in 1988? (24) Q. Itthey say, I don't have one'? (15) Q. Is it stronger thin most? Or is it (7) A. Um•bmm. Yes. (:5) A. Then they'd be someone who just like any (16) other consumer (8) Q. That's similar to what you doesn't have a usual product? started to talk to (9) Mr. Hopper about Page 531 (17) A. You know, I don't know. I on the brand was declining in the '70s (1) brand, and there are smokers like think a long titne ago, (18) you know, (10) until sometime in the mid '80s when that. probably back in the mid '80s It may the repositioning (11) occurred. Is t,yAt (2) Q. And what if you ask them the have been (19) stronger than some consistent? follow-up question (3) that said 'What other categories. I think today it's (12) A. The reason - cigarette brands do you smoke?' And (20) probably like other cate8ories. (13) MS. BIXENSTINE: Wait. they (4) only identified one brand? (21) Q. You think currently that people Objection. That is not a(14) question. I (5) A. Well, they don't do that. If are more likely (22) to - or as likely to don't know what the question was. they don't have a (6) usual brand then switch cigarettes as they are likely (23) (13) MR. JANECEK: Q. You can they identify several brands. That's to switch any other product that they answer. What were you (16) going to why (7) they don't have a usual purchase? say? brand. (24) A. It depends on the individual. (17) A. You need to ask the question (8) Q. lf you can turn to page 6215. But in general (25) product again. Have you taken a (9) look at that? categories. (l8) Q. No. Strike that Iasi question. (l0) A. Yes. Page 533 (19) Q. What were you going to say? (11) Q. Do you agree with the (1) Q. So it's not extremely brand That's my next (20) question, statements under the heading (12) loyal, it's just on (2) average brand - it's (21) A. I don't know. I mean - Importance that since the cigarette got average brand loyalty? (22) Q. You forgotten - market is extremely (13) brand loyal. the (3) A. Right. That's what I would (23) A. - I was interrupted. I don't brand that is chosen as a first usual say. know. brand (14) has a long-term strategic (4) Q. Is there any way that you (24) Q. Would you agree that RJR was edge? quantify that? Is there (S) a market - in a declining (25) market: that it's brand (13) A. I don't agree with extremely (6) A. No, I have given you -you share generally across brands was brand loyal. (16) Certainly, It's a asked me my opinion. (7) I was giving Page 535 brand loyal category, but there is a you my opinion. (1) declining? lot (17) of switching in the cigarette (8) Q. I'm asking you is there a way (2) A. When? category. you can quantify (9) that as a marketing (3) Q. In the '70s and early '80s? (18) I believe I've already told you in person? (4) A. You know, again, '70s - gosh, the deposition, (19) I've quoted (10) A. You mean to go do research you know, I'd just (S) have to go back numbers on switching, and there is a on all other product (11) categories? to look at the '70s to be able to tell lot of (20) switching. (12) Q. No. to determine what the brand you (6) brand share trends in the (:I ) And there are a lot of smokers loyalty is of (13) Reynolds, how many '70s. But in the 1980s Reynolds' (7) who use other (22) brands people are most likely to be loyal as (14) overall market share has been occasionally. I believe I told you 20 opposed to a switcher. declining. .percent of (23) Camel's volume (15) A. It-again, you know, you (8) Q. And you're just not sure of the comes from occasional users. asked me this yesterday (16) about '70s? People who's (24) usual brand is bow we measure brand loyalty, and I (9) A. I can't remember exactly, you another brand but smoke Camel on a laid out for you (17) how we measure know. I'd need to (10) go back and part-time (25) basis, :o - and, gee, in brand loyalty. Remember? look at the '70s to - i the last 10 years, probably about (18) Q. Yes, we started talking about (11) Q. You can't remember,exactly, Page 532 that. but do you have any (12) general (t) 10 years, the saving segment, (19) A. That's how we measure brand recollection or feeling? brands with the lower price, (2) have loyalty. Do you want (20) me to go (13) A. I don't know. 1t could have grown to be, you know, nearly a back over It again? been - I think we (14) were - I don't fourth of the market. (3) That's huge (21) Q. Just the general concept. think we were declining in share in switching. I mean there's been There's a way to do it. the (15) '70s, but I'm not - I'm not tremendous (4) switching in the (22) A. Right. Remember, I talked positive of that. category. , about share of smoker (23) and share (l6) Q. Was Camel declining in the '70s (s) So I don't agree with this since of requirement, and then I - and and '80s, early (17) '80s? the cigarette (6) market is extremely occasional users (24) versus usual (18) A. Camel? I believe - I probably brand loyal. brand. And then I talked about the don't have these (19) dates exactly (7) Now, the brand that is chosen as qualitative (2S) measures of is It - "Do right, but from about the mid-late first usual brand (8) has a long-term you consider it a lot better than 'SOs (20) through to I think sometime strategic edge? If you bold - If Page 534 in the late '70s was declining (21) in you're -(9) if this is a brand that - (1) any other brand? Would you share. and you're able to maintain (10) consider smoking any oth..r (2) (22) Q. And then what happened in the lo~ alty, I would agree with that. brand? Do you actually smoke any late '70s? (11) Q. So the only thing you disagree other brand?" Those are (3) measures (23) A. It sort of stabilized. There with is that it's (12) not extremely brand of how loyal you are to the brand you may have been a (24) little bit of loyal, it's just a loyal category? currently (4) smoke. decline, but It wasn't as much. (13) A. lt has - you know, It's a brand (5) Q. Did you notice down the two (25) Q. And then at some point did Tooker & Antz (413),992-0650 Page S30 to Page 53S 51714 2163
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BSA Mangini v. R.J. Reynolds Tobacco Lynn Beasley, Vol. II - 5/30/97 xMAX•1s, development of the Joe Camel Camel's history, As I've been And College (14) Students In 80 campaign because Camel was responsible for other brands (19) I'm Cities Throughout the United States, Page 461 aware of their history, as well. I'm (15) October-November, 1959. (1) declining in market share and the certainly (20) generally aware of the (16) Q. Okay. You can give it back to target definition for (2) Camel was 18 company's history, and I'm generally me now. to 24 adult smokers, secondarily 25 (21) aware of - of the cigarette history. (17) A. Okay. to 34 adult (3) smokers and (22) I can't tell you specifically during a (18) Q. As you look through the maintaining loyalty of existing adult decade over (23) 2S years ago exactly document, is it true that (19) on several Camel (4) smokers. what was happening to every one of pages there are data and statistics (5) We developed that campaign for R.J. (24) Reynolds' brands. I can't do showing the (20) incidence of smoking the Camel brand to (6) accomplish that. of high school students? those objectives on the Camel (25) MR. HOPPER: I'm about to show (21) A. Yes. brand. you a document that (22) Q. What about on any of the other (7) Q. Isn't it true that prior to 1987-88 . Page 463 pages? when you (8) rolled out the Camel (l) I believe has also been entered in i:3) A. May I look through them? repositioning campaign, that Camel the Mangini case, but (2) with some (24) Q. Yes, please. was (9) losing market share as against differences. And I would like to have .(25) A. Yes. This is not about its competitors? this (3) marked, please, as Arch incidence (indicating). (t0) A. Camel was losing titarket Piaintiffs Exhibit 1. Page 465 share priott to 1987. (4) (Arch Exhibit 1 marked.) (1) Q. Okay. And it's true that that (11) Q. Isn1t it true that you had share (5) MR. HOPPER: Why don't you take letter appears to (2) be sent from the loss across all (12) brands in the 1970s? moment and look (6) at that. We'll 70 William Esty Company to a Mr. Sugg at (13) A. I don't know. Goug ff the record for.a moment RJR (3) Tobacco Company, correct? (14) Q. You don't know? w t e(7) she's doing that, please. (4) A. That's what it says. (15) A. (Witness shakes head.) (8) THE VIDEOORAPHER: We're off (5) MR. HOPPER: Can we mark that .(16) Q. And you don't know because the record.t 11:40 (9) a.m. as Arch Plaintiff :(6) Exhibit No. 2. you weren't with the (17) company? (10) (Discussion off the record.) (7) (Arch Exhibit 2 marked.) (18) A. I wasn't with the company. I (11) THE VIDEOGRAPHER: We're (8) MR. HOPPER: Q. Ms. Beasley, if haven't gone back (19) and studied back on the record at (12) 11:41 a.m. you would take a (9) moment and look that: (13) MR. HOPPER: Q. Ms. Beasley, at this document, and we'll go off the (20) Q. Okay. You wouldn't, as a part you've had a chance (14) to look over (10) record while she's doing that. of planning or (21) developing a the Arch Exhibit No. 1 I've shown you? (11) THE VIDEOGRAPHER: We're off campaign, look at what historically has Is that (15) correct? the record at 11:47 (12) a.m. been (22) the market prior to developing (16) A. Yes. (13) (Discussion off the record.) that campaign? (17) Q. Can you tell me what the (14) THE VIDEOGRAPHER: We're (23) A. I'm not sure what you're document looks like or (18) looks to be back on the record at (15) 11:48 a.m. asking. If you're - to you? (16) MR. HOPPER: I've just instructed (24) Q. What I'm - can I clarify it for (19) A. It looks like a document the witness that (17) If she needs extra you? written by the William (20) Esty time to look at the document after I've (:5) A. Um-hmm. Please. Company in 1959. The - a memo (18) questioned her she may do that. I Page 462 written by the William (21) Esty would like to proceed, (19) given the (t) Q. Whrc I'm asking you is that isn't Company in 1959. time restrictions, with the questioning if it true that in (2) order to conceive, go (22) Q. Well, in fact, it looks like a letter, I may. (20) with the witness. through the images, the vision, the (3) not a memo, (23) isn't it? (21) MS. BIXENSTINE: I'll let her idea. the strategies, put it into (24) A. Letter, memo., I guess it's a proceed. promotion, put it into (4) advertising, letter. (22) MR. HOPPER: If she needs more spend all those millions and hundreds .(25) Q. Okay. And who's it written to? time - of (S) millions of dollars to do that, Page 464 (23) MS. BIXENSTINE: - but if she you're going to look back at (6) where (t) A, It says Mr. W.A. Sugg, R.J. needs more time - the market has been before you decide Reynolds Tobacco (2) Company, (24) MR. HOPPER: - she can. Sure. what to market (7) to and where the Winston-Salem, North Carolina. (25) MS. BIXENSTINE: - then she'll do market is. (3) Q. And it's signed by whom7 that. 1s) IMS. BIXENSTINE: You're asking (4) A. George McGovern. Isn't that Page 466 :_enerally or what (9) she did do? what that says? (i) MR. HOPPER: Q. Okay? (10, MR. HOPPER: Both. (5) Q. Yes. Not to be confused with - (2) A. Okay. ( I 1) MS. BIXENSTINE: That's (6) A. That's - I don't know. (3) Q. Ms. Beasley, you've just looked compound. Take them one (12) at a (7) Q. On the second page oi'the at a document that (4) has been time. document, would you read (8) the title provided In the Attorney General case (13) THE WITNESS: In terms of when I for me, please? in Minnesota (5) by R.J. Reynolds got to the Camel (14) brand, certainly I ,(9) A. It says: The Youth Research - Tobacco Company, and it is to a Mr. was aware of Camel's declining trend. I you want me to (10) read the whole Uziel (6) Frydman. Is that correct? (15) knew that's why I was there. to thing? (7) A. That's the name that's written reposition Camel and, you (16) know, (l I) Q. Just the title, yes. there, but I(8) don't - generate competitive switching so that (12) A. The Youth Research Institute (9) Q. Is that the correct name? Just we could (17) increase our market Study Regarding (13) Cigarette answer just (10) quickly on the share. So certainly, I was aware of (18) Smoking Among 7,621 High School question. Is that the correct name? Page 460 to Page 466 (415) 392-0650 Tooker dc Antz ~y a i SUA- 6
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( t 1) THE WITNESS: Have i worked on other advertising (12) campaigns? (13) MR. JANECEK: Q. Right. (14) A. Yes. (1 S) Q. Did any of those campaigns see an increase in (16) share of smokers? (17) A. Yes. (18) Q. How many other rypes of campaigns have you worked (19) on? (20) A. Oh, a bunch. (21) Q. What's the average - of those that did increase. (22) what was the average increase in share of smokers, were (23) those campaigns? (24) A. I don't know about an average. That would be (23) impossible, because a lot of the advertising I worked on Page $42 (1) never ran, you know, because - (2) MS. BIXENSTINE: Are you talking about percentage (3) increase or just -. (4) MR. JANECEK: Q. I am talking share of smoker (5) increase. This type of data. (6) A. You know. Look, again, wben you say did I work on (7) other advertising campaigns? Sure, I worked on a bunch and (8) a•bunch that didn't run. You know, so It couldn't possibly (9) have an effect on share because It didn't run. ! t0) I did work on Century, where we grew share of (l1) smoker. (12) Q. What was the share growth of smoker for the first (13) year in Century? (14) A. I don't know. r 15) Q. Can you estimate for me? r 16) A. I'm guessing. But I think we grew about .81 share (17) in total adult smokers. (19) Q. Right. Other than Century. what other campaigns (19) are you aware of that % ou worked on that you did launch that ;_0) it resulted - ;: t ) A. Doral. Q. And do you recall what the first ~ car's share of (23) smoker change was for Doral? a) A. No. -:5 1 Q. You don't? Was it closer to the Century brand Page 543 1) that we were talking about or the numbers that we're looking (2) at Camel? 0) A. Oh, the numbers I was talking about in Century (4) don't compare to this. This is Just 18 to 24 - 18 to 20 (5) share. I was talking about total adult sbare of smoker. (6) Q. Right. (7) A. It's not the same, obviously. (8) Q. I am understand. I'm just trying to get a general (9) sense whether 2 points is a phenomenal result or Tooker & Antx ~)YY Yi-Ja1. • VI. U - .7/JV/y / whether 2(1o) points is average or mediocre at best? (11) A. No. If that's what you want to get a sense for, I(12) would say it's good. I wouldn't call It phenomenal, but I(13) would call it good. It's certainly not - better than (14) average. (1S) Q. It's better than most? (16) A. Better than average. That's what I would say. (17) Q. Okay. Mrs. Beasley. I'l) have you direct your (18) attention to the page 6218. (19) A. Um-hmm. (20) Q. Did you read through - I don't remember if you (21) read through the entire document or do you need to take a(22) look at this page again? (23) A. I read It. (24) Q. This is a summary or appears to be a summary of (25) the document? Page S44 (1) A. Yeah, I guess that's what It says. Um-hmm. (2) Q. First I want to turn your attention to the first (3) statement. (4) A. Yes. (S) Q. See where it's talking about FUBYAS and brand (6) switching are strategic opportunities? (7) A. Yes. (8) Q. Why would they break out FUBYAS as opposed to (9) brand switching? (10) A. Because whoever want - whoever wrote this wanted (11) to reinforce that jyounger adult smokers are importanR to the (12) company. (13) Q. So it's - FUBYAS is not in your mind a strategic (14) opportunity or a different strategic opportunity than (15) switchers:/ (16) A. Than young adult smokers. (17) Q. Do you - then I take it you don't generally agree (18) with tbis statement that's here in item number 1? (19) A. FUBYAS and brand switching are strategic (20) opportunities? I agree with that. (21) Q. But they're not - you would have said it (22) differently? (23) A. What do you mean? (24) Q. Wouldn't you have said that FUBYAS and brand (23) switching is a strategic opportunity? Because it's one .Page 545 (1) concept, right? (2) A. No. Brand switching can mean - what I assume the (3) author meant here, and I don't know, but brand switching ean (4) obviously be adult smokers of any age. So I think what the (5) author meant was younger adult smokers, FUBYAS, younger (6) adult smokers, are a (415)2-0650 tMAX()I/ bigger opportunity. Why are they a (7) bigger opportunity? Because there is way more switchine (e) among FZIBYAS than among any other age group. (9) Q. What about item number 2. (10) MS. BIXENSTINE: What about ic° (11) MR. JANECEK: Q. Would you read item number 2? (12) A. Yes. (13) Q. Okay. See right above that, it's talking about to (14) me what.looks like three opportunities. FUBYAS. switcher and (13) occasional. Do you see those three designations there? (16) A. Yes. (17) Q. And this author says that FUBYAS opportunity has ( te) an advantage over the other two. (19) MS. BIXENSTINE: Is that a question? (20) MR. JANECEK: Q. Do you see that? (21) A. Number 2 says that. (22) Q. Do you see that? (23) A. Yes. (24) Q. Would you agree that FUBYAS has - the FUBYAS (25) opportunity has an advantage over occasional users or Page 546 (1) switchers? (2) A. Again. I wouldn't define it this way. I - I(3) think what the author was trying to get at is younger adult (4) smokers are more important than older adult smokers, because (51 if you attract a younger adult smoker to switch to your (6) brand and they stay loyal to your brand, then obviously (7) they're going to be with your brand longer and you have more (8) likelihood that they will switch. Because they are more (9) likely to switch when they're a younger adult smoker. (10) And I think what this author is trying to say is, (11) look, the younger adult opportunity for switching is bigger (12) than the overall switching opportunity. That I agree with. (13) Q. Okay. And which FLBYAS ts a subset of the younger (14) adult switching? (15) A. Not really. I mean yes, this author breaks It out (16) that way. But the facts are we develop our marketing and we (17) do our marketing based on a demographic target, 18 to 24 (18) adult smokers, 25 to 34 adult smokers, and we don't ' (19) differentiate people on; "Gee, is this the first brand (20) you've been loyal to or not?" We don't ask them that. We (21) don't separate them. We don't do different marketing for (22) them. Page 541 to Page 5a6• 51714 2164
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BSA Mangini v. R.J. Reynolds Tobacco Lynn Beasley, Vol. lI - 5/30/97 xMAZC3:, (23) It's an 18 to 24 adult smoker opportunity. (24) Q. No, I think - I have confused you. What I meant, (25) a subset of switchers, I was under the impression and it's Page 547 (l) my understanding that FUBYAS are a different category of (2) people. They're notswitchers. (3) A. It all depends. (4) Q. And so that's what I meant by subset. FUBYAS is (5) just another switcher, it's a different type of switcher. ' (6) A. I would say that's true. (%) Q. But you don't necessarily target FUBYAS as opposed (8) to targeting switchers which encompasses FUBYAS? (9) A. Right.. Target switchers which encompasses FUBYAS. (10) Q. Which encompasses. But you don't target - (11) A. Yes. Thank you. That's it. (12) Q. Why does this author say that FUBYAS is - the (13) FUBYAS opportunity is an advantage over the other two (14) because it's more targeted? (15) MS. BIXENSTINE: Calls for speculation. (16) Objection. (17) THE WITNESS: You know - (18) MR. JANECEK: Q. He's just confused or he - he (19) or she doesn't approach this same way you do? Is that - (:0) A. No, I can't conclude that from reading this. I(21) think probably what this author's saying, although I'm not (:2) sure of it, Is that younger adult smokers have more similar (23) wants than older adult smokers. That's what it looks like (24) to me. (:5) MR. JANECEK: Mrs. Beasley, I'll hand vou a Page 548 1, document which I'11 have the court reporter designate as (2) Plaintiffs Exhihit No. 21. (3) (Exhibit 21 marked.) ,4, SiR. JANECEK: For the record, this is an undated (5) document. At the top of the page it appears to have a title ,61 of Younger Adults •- IMP as Smokers. c71 Q. Have you seen - have you had a chance to review (8) that document? (9) A. Yes. (. t0) Q. Okay. Have you seen this document before? H 1) A. No: And I don't really think it's a document. (12) It's a bunch of handwritten notes. (13) Q. Right. Handwritten notes. Do you see who is (14) identified on the top Page S46 to Page 552 ' of the document? Do you see those two (!s) names on the left? (16) A. It says Dick Nordine, Diane Burroughs. (17) Q. And both of those individuals you've previously (18) testified were employed by Reynolds at one point in ime? (19) A. Yes. Although whoever wrote this, you know, (20) probably didn't %-lhattg,ti them very well, since they - it (21) looks like they spelled Diane's name wrong. (22) Q. Do you see the first entry there, key group (23) adult - key young adult group? (24) A. Yes. (25) Q. Do you see, this author identifies the key young Page 549 (1) adult group as FUBYAS? (2) A. Yes. (3) Q. And indicates that 2 share points of smokers are (4) 18 years old? (S) A. Yes. (6) Q. Would you agree or disagree with that statement? (7) A. I don't know. Don't know when they're talking (8) about. (9) Q. Currently. (10) A. Currently? I don't know if 2 percent of all adult (11) smokers are 18 year olds. I - (12) Q. What do you - what's your best estimation of the (13) current share of young adult smokers - of 18 year old young (14) adult smokers? (15) A. I don't know. I think that 18 to 24 adult smokers (16) are about 13 percent maybe of the - of all adult smokers. (17) So I don't know what - I have no idea what (18) portion of that is 18, 1 don't know. (19) Q. So you couldn't - you have no ability to many (20) estimate that? (21) A. I haven't looked at that, no. (22) Q. What about back in 1987-88 when you were beginning (23) to launch the Joe Camel campaign? (24) A. I don't know, but I think some of the documents (25) you've shown me referenced It. Page 550 (t) O. The 18 year olds? (2) A. I think they did. (3) Q. Do you see the bottom left-hand corner that looks (4) like it's a Roman V? It might be a VI on my copy. I can't (5) te1l. Do you see that? (6) A. Right. I see that. (7) Q. Do you see the items that this author has (8) identified as important needs to FUBYAS? (9) A. Yes. (10) Q. Can you read those? (413) 392-0650 (11) A. It says belonging, being different, upward (12) striving. (13) Q. What was - number one is belonging, fitting in? (14) A. That's what it says. (15) Q. Belonging, fitting in. (16) A. Um-hmm. (17) Q. To peer group? (18) A. That's what it says. (19) Q. Being different is from family and other peer (20) groups? (21) A. Yes. (22) Q. And upward striving is being seen as successful? (23) A. Right. (24) Q. Do you agree that those three characteristics (25) that are - at least those three characteristics that are Page 551 (1) identified are important needs to FUBYAS? (2) A. I believe they're important to almost all adults. (3) Q. But they're important to FUBYAS? (4) A. I will - I think they're important to all adults. (5) Q. Including FUBYAS? .(6) A. Including FUBYAS. (7) Q. If you can turn to the last page of the document. (8) Can you read that first bullet point, starting with the most (9) 18 to 20 year olds. (10) A. It says most 18 to 20 year olds have no concept of (11) brand advertising. Observed by seeing a brands' smokers. (12) Product driven oriented. (13) Q. Is that con - is that idea that most 18 to 20 (14) year olds have no concept of a brand advertising, is that (15) something that you're familiar with? (16) A. No, it doesn't make sense to me. (17) Q. You think that's wrong? (18) A. It doesn't make sense to me. I know that 18 -(19) back when our target on Camel was 18 to 24 adult smokers, I(20) know that we did tracking research that 18 to 20 year olds (21) were aware of brand advertising. So I don't know what this (22) person - who only - who knows who wrote it or what they (23) meant, but that sounds pretty bizarre. (24) Q. Well, it might sound bizarre in the vacuum, but (25) what about the second half of that sentence, which was that Page S52 (1) observe the advertising by seeing a brands' smokers or (2) observe the brand? I'm not sure how to read that. (3) A. Yeah, I don't know, I'm not sure how to read it, (4) either. But it Tooker & Antz I
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sA mangtni V. K.J. Reynotas t obacco Lynn Beasley, Voi p- 5/30/97 effective younger adult (23) smoker, I think you read it young adult smoker. It's (24) youn jer. (25) Q. That's correct. And did you' - testify that this Page 477 (1) subject matter is thoughts on younger adult smoker study? (2) A. I read what the - the subject title of this memo (3) is. (4) MR. HOPPER: Okay. Thank you. (S) Would you mark that as Arch Exhibit No. 7, I(6) believe it is. (7) (Arch Exhibit 7 marked.) (8) MR. HOPPER: Q. Ms. Beasley, I'm showing you what (9) has been marked as Arch Exhibit No. 7. Would you take a (l0) moment and look at that document, please. (11) Okay. Ms. Beasley. I would like to ask you a (12) question. If you would refer to page - the first page of (13) this document. Can you give me the date on it, please? (14) A. July 3rd, 1974. (15) Q. And can you read for me in the first paragraph (16) what the apparent purpose of the document is? (17) A. You want me to read this first sentence? (IS) Q. Yes. (19) A. The memo says: The purpose of this memorandum is (20) to answer the question "What causes smokers to select their (21) first brand of cigarette?" (::) Q. If you push down further in the document, it (23) states under a heading Starting Age, there's a chart down (24) there. And under that chart it says Age Started Smoking, (25) and it shows a category for men and for %homen. What's the Page 478 r t i first category under that age started smoking age bracket? (2) A. 17 and under. 13) Q. And what's the next one? (s) A. 18 to 20. 15) Q. w'hat would you think that the next category might (6) be? 0 1 A. Probably 21 to 24, It looks like. r8r Q. And the next one would be? r9r A. 23 and over. (10) Q. Okay. But clearly, the document shows age started (11) smoking, and there are some statistical references to the 17 (12) and under category. Isn't that correct? (13) A. Yes. (14) Q. If you go to the second page of this document (1S) which again is a memorandum, in the last paragraph, in the (16) first sentence, would you read me that first sentence, under (17) the Tooker & Antz heading Conformance? (18) A. Probably- (19) Q. I thlAk it says the most. (20) A. - the most prevalent reason that a young person (21) starts to smoke is the influence of a close friend or (22) "peers." (_3) Q. Then it goes on to say: One major study among (24) youths show that the best predictor of close - (2S) A. Of - Page 479 (1) Q. - best predictor of whether or not a young person (2) smokes is to determine if he has a close friend who smokes. (3) Peer group influence is very strong during the teen years. (4) Is that what it says? (5) A. Yes. (6) MR. HOPPER: Okay. Thank you. (7) MS. BIXENSTINE: Do you expect to be able to (8) finish before lunch? (9) MR. HOPPER: I'm going to finish. I'm going to (10) need a little bit of time after lunch. Chris was even - We (11) can go off the record. (12) THE VIDEOGRAPHER: We're off the record at 12:35 (13) p.m. (14) (Lunch recess • 12:35 to 1:27 pm.) (1S) THE VIDEOGRAPHER: We're back on the record at (16) 1:27 p.m. (17) (Arch Exhibit 8 marked.) (IS) MR. HOPPER: Q. Ms. Beasley, I'm showing you what (19) has now been marked as Arch Exhibit No. 8. If you would (20) take a moment and look at that. (21) And Ms. Beasley, if you need to read further. I'll (22) let you jump back into it in a minute. But if you would (23) look at the front page of the document and give me the date (24) on that document, please. (25) A. January 1Sth, 1985. Page 480 (1) Q. Does it appear to be a document that was also (2) produced by your company for the Humphrey litigation in (3) Minnesota? (4) MS. BIXENSTINE: We'll stipulate to that. (S) MR. HOPPER: Q. You can answer. (6) A. Yes. (7) Q. Who is the memo to? (8) A. J.T. Winebrenner. (9) Q. Do you kaow who Mr. Winebrenner is? (10) A. Yes. (11) Q. Who is he? (12) A. He was an individual in marketing at Reynolds. (13) Q. What was his title or position at that point? (14) A. 1985? I'm not sure. ( I S) Q. What's his position now? (16) A. He's not with the company. (4151392-0650 rMA.L(I11 (17) Q. And it's from whorn? (ls) A. D.S. Burrows. (19) Q. And who is Mr, Burrows? (20) A. That's - would be Diane Burrows. (21) Q. Excuse me. Of course, it is. And what's the (22) subject matter of this memoranda? (23) A. You want me to read it. (24) Q. The title, yes. (23) A. Camel - the memo says: Camel Perceptions From Page 481 (1) Qualitative FLBYAS Research. (2) Q. And do you know what that anacronym, FUBYAS, (3) stands for? (4) A. Yes. (S) Q. Would you state that for the record, please. (6) A. First usual brand younger adult smoker. (7) Q. And what does that mean? (8) A. What does that term mean? (9) Q. Um-hmm. i (10) A. It means adult smokers, and this would be the (11) first brand that adult smokers become loyal to. (12) Q. How do they do that7 (13) A. How do they do what? (14) Q. Become loyal tu a first brand. (tS) A. It's a process. They're a daily smoker. They're (16) buying some brand. Over time you find a brand that fits you (17) best that you like the taste best of, that you think is (18) better than other brands. And once you find a brand like (19) that, then you usually become loyal to it. (20) Q. But isn't that inconsistent with the term FUBYAS? (21) Because it says first usual brand, doesn't it? (22) A. Yes, It does. (23) Q. Isn't it looking for or reflective of the first (24) brand that smoker takes a loyalty to?' (2$) A. It's the first usual brand. And usual brand means Page 482 (1) the first brand that you are loyal to, that you think is a (2) lot better than other brands. . (3) It's not the first brand you smoke; It's you're a (4) daily smoker, you're buying some brand and it's - it's when (5) you decide "this is the brand I'm going to be loyal to." (6) That's usual brand. (7) Q. It could be the first brand, though, couldn't it? (8) A. What could be a first brand? (9) Q. It could be the first brand that a smoker develops (10) a loyalty to the first time they smoke. (11) A. Could you say that one more time? (12) Q. If they smoke for the first time. Page 476 to Page 482 51714 2158
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says observe by seeing a brands' smokers. (5) Q. Is that a concept you're familiar w ith! (6) A. Yes. (7) Q. Can you briefly explain to me what - does that (8) concept have a label or a name? (9) MS. BIXENSTINE: Objection. 00) THE WITNESS: No. What that concept is is you (11) form an impression of a brand by who else you see smoking (12) it. That's true of all adult smokers. (13) You know, if you primarily see older people (14) smoking a brand then you're going to say I think that brand (1S) is for older people. It's just, you know, kind of common (16) sense. It applies to all brands. (17) MR. JANECEK: Q. Or a type of person, that's (18) also be - (19) A. Sure, you could conclude that, too. Not everybody (20) does that. But you look at who drives a B.%fW and who chooses (21) one and then you say that's kind of what BMW is. (22) Q. And then so if they're smoking Brand X and you're (23) thinking of switching or thinking of selecting a first usual (24) brand, you might go for Brand X if that's your mindset? (25) A. Yeah. I mean - Page 553 (1) MS. BIXENSTINE: Wait. (2) THE WITNESS: - if you - I'm sorry. Kim. (3) MS. BIXENSTINE: I was going to object that it was (4) vague. Go ahead. (s) THE WITNESS: If you watch people who are driving (6) BMW's and they were all alike and you wanted to be like (7) them, then you might want to drive a BMW, too. Your (8) impression of BMW is in part formed by who you see using the (9) product. That's the concept. (10) MR. JANECEK: Q. Is that - is that what's meant (11) by the last sentence, product driven oriented? (12) A.1- ;) 3) MS. BIXENSTINE: Objection. Calls for (14) speculation. • (ls) THE WITNESS: I was going to say. I don't know. 1(16) mean reaily. I have no idea who wrote this. It's (17) handwritten. It's obvious they didn't know the people very (18) well because they didn't spell their names right. So I 119) don't even know what they meant. (:0) MR. JANECEK: Ms. Beasley, I will hand you a (21) document which I'll have the court reporter mark as (22) PlaintifPs Exhibit No. 22. (.3) (Exhibit 22 marked.) Tooker & Antz -f.---a), •V..u -d,dv~3F I (24) MR. JANECEK: Q. I don't want you to necessarily (25) read the entire document. Just enough to satisfy vourself Page 554 (1) whether you've seen it or not seen it. (2) A. Okay. No, I don't recall tbis. (3) Q. You don't recall ever seeing this document? (4) A. (Witness shakes bead.) No. (S) Q. Did you look at this document long enough to get a (6) general idea of what the topic was? (7) A. Sort of. I didn't really read that much of It. (8) It says it's a broad overview of the cigarette market (9) covering the past 30 years. (10) Q. Okay. If you could turn to page 3. I'm looking (11) at the third paragraph or - yeah, third paa`raph, starting (12) with 'Presently the Baby Bubbfe.' What is the baby bubble? (13) Are you aware of that term? (14) A. Yes. (IS) Q. What is the baby bubble? (16) A. It's a portion of the population. I forget the (17) exact ages. I think It is people who are today about, let (18) me think. They're over - I think about 40 maybe and then (19) it's probably about a 15-year time span. (20) It's a=roup of people that there were a lot of (21) babies boro at once, and that increased the size of the (22) population, and then that group of people then is called a (23) baby bubble as !t moves through over time. (24) Q. So there's a population that's available - that's (25) present by age tategories. and it may be more of a Page SSS (1) particular age versus another age? (2) MS. BDCENSTINE: You know, if you let her read the (3) document, it's defined by the author in the document. (4) THE WITNESS: It says present - let's see what it (S) says. Presently the baby bubble is between pages 24 and 39. (6) That was back then. As the leading edge of this group (7) enters their forties, they will trigger growth in the 3S (8) plus age groups. (9) In a strategic research - research report. (10) behavior of the baby bubble (1981), it was estimated that (11) 64.4 percent of all smokers will be 35 and older in 1990. (12) This is an increase from 57.6 percent in 1984. (13) MR. JANECEK: Q. So- (14) MS. BDCENSTINE: And then it's identified there. (IS) THE WITNESS: Oh, l see. The increase in smoking (16) age population during the 1970s was (41l3'392-0650 X M A X, !3) caused by the large (17) post-World War II baby bubble which was born in 1946 to (18) 1961. (19) MR. JANECEKt Q. So am I generally correct, did I(20) understand you correctly when you were - (21) A. It's a`roup of people that were born 1946 to (22) 1961. (23) Q. That's what you understand a baby bubble to mean? (24) A. Right. It's what I told you. It's a group of (25) people that were all born within a certain time frame and it Page 356 (1) was a large number of people and now that - that bubble (2) moves over time as people age. (3) Q. And so the bubble changes average ages? Is this (4) like the largest group? Is that how it's - I mean I'm not (5) quite following. i (6) A. It was a large group. I don't know If it was the (7) largest group ever, but it was - (8) Q. No, I'm not talking about - and sorry, if that's (9) what you're testifying, that's not the questions I was (l0) asking. I'm not talking about how this author uses it. I(11) am talking about how you understand the term baby bubble. (12) A. Right. Baby bubble• It was a group of people (13) that were born post-World War II, a bunch of babies all at (14) once when people came back from the war, it increased the (IS) size of the population. And as those people age, It's (16) called a baby bubble because they were a big group of people (17) born all the once and now they're aging over time. (18) Q. So it's not a concept, it's particular - it's (19) these actual - (20) A. It's a group of people. (21) Q. These particular people? Post (22) A. It's these particular people. (23) Q. Were there other baby bubbles? Or is this the (24) only baby bubble that you're aware of. Try saying that (:S) fast. Page 557 (1) A. I have heard, I can't - I can't remember the (2) exact term. But I think that some people have characterized (3) a second baby bubble. I - I can't remember the specifics. (4) Q. Now, this -and you've had'a chance to look at (5) least the baby bubble portion, since you've read tt.on the (6) record? (7) A. This right here (indicating). (8) Q. This indication that the haby bubble is betv n 24 (9) and 39 and is Page 552 to Page 557 51714 2165
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-~-- - - Camel campaign. That's (16) bow you started. (17) This document is not about the Joe Camel campaign (I8) or - (19) Q. But I'm asking you the question, though. (20) A. Okay. So - I thought you were asking me what (21) this statement meant. (22) Q. Well, this statement's talking about transcending (23) demographics. and this document's talking about employing (24) universal cues and symbols having motivational value outside (23) of the prime prospect group as well. Page 499 (1) And I'm saying logically, if your target is the 18 (2) to 24 age group and you're positioning the Joe Camel (3) campaign and it reaches those older smokers, logically it's (4) also going to reach those people that nine different (5) documents I've placed in front of you that sets 15 years in (6) motion of RJR talking about reaching people younger than 18, (7) that when you get to Joe Camel it's logically going to reach (8) them. Isn't that true? (9) MS. BIXENSTINE: Objection to the characterization (10) of the documenu. Objection to the speech. Objection to (11) the question. (12) THE WITNESS: That is not true. (13) MR. HOPPER: Q. You don't think so? (14) A. What you just said is not true. The (1S) characterization of those documents is not true. t 16) Q. I've shown you nine different documents that (17) clearly were in RJR's possession, your counsel has (18) stipulated to them, that they're in RJR's files, that there (19) was studies commissioned, that there were data taken, that (20) there's research being done focusing on teenagers and (21) smoking, the 14 to 17 age group. You've read those into the (22) record. A campaign was produced and talking about exceeding (23) tbe prime prospect group, and io8ically, you said that it's (24) going to reach people older than 18 to 24. And I'm asking (2S) you-if logically isn't it true that it's also going to reach Page 500 (1) people younger than that. (2) MS. BIXENSTINE: Objection to the question and the (3) predicates in the question and the - (4) THE WITNESS: Exactly. (5) MS. BIXENSTINE: - characterization of the (6) documents. (7) MR. HOPPER: Q. Isn't it true? (8) A. No, It's not. You did not Tooker & Antz •Vl.lA 'r,dv.7/ characterize what is in (9) those - what you just said is not true. (10) Q. Logically it's true that if people older see the (11) campaign and it reaches them, that you can't help from the (12) fact that younger people see it? Is that not true? (13) A. The campaign was developed for 18 - (14) Q. I know what it was developed for. (1S) A. May I finish? (16) Q. Ms. Beasley. No, you can't. (17) MS. BIXENSTINE: You're cutting her off. (18) MR. HOPPER: Q. I know it was developed for 18 to (19) 24 year age group. We've established that fact. (20) A. That is not what I was going to say. (21) Q. I'm asking you - (22) MS. BIXENSTINE: Wait, wait. One at a time. (23) MR. HOPPER: Q. - if it reached people younger (24) than that. (23) A. What I was going to say - and you just repeated Page 501 (1) It incorrectly, Tbe campaign was developed for 18 to 34 (2) adult smokers. (3) Q. No, it was developed for 18 to 24. You've already (4) testified to that fact. (5) MS. BIXENSTINE: Objection. (6) THE WITNESS: I have testified to this fact (7) several times. 18 to 24 adult smokers, 25 to 34 adult (8) smokers and Camel smokers of all ages, and I have said that (9) several times. That we developed the campaign for all three (10) of those groups and did development research among all three (11) of these groups. (12) MR. HOPPER: If you can mark this as Arch 10, (1Y) please. (14) (Arch Exhibit 10 marked.) (15) MR. HOPPER: Q. Ms. Beasley, I'm showing you a (16) document marked Arch Exhibit No. 10. If you would take a (17) look at it, please. And Ms. Beasley, if you need more time (18) based on my questions I'll give you a chance to go back and (19) look at the document. (20) Would you look if he first page of the document. (2t) please. Does it appear to be a memorandum? (22) A. Yes, (23) MR. HOPPER: It's hard to see on these copies, (24) Counsel, but I'm claiming that it's a document produced by (25) your client in the Humphrey request for production of Page 502 (1) documents in that case. Are you willing to stipulate to (2) that? (41 392-0650 X4AX :31 (3) MS. BDCENSTINE: I - (4) MR. HOPPER: I think we can go back and get the (3) originil and show you. (6) MS. BDCENSTINE: I can't tell, but I have no (7) reason to disbelieve you on that, Counsel. (8) MR. HOPPER: Thank you. (9) Q. Is it a memorandum written to who, Ms. Beasley? (10) A. R.M. Sanders. (11) Q. And who is he? (12) A. Rick Sanders. (13) Q. And what did he do at the time? (14) A. I think be was a group director, bad several (15) brands. (16) Q.Okay. I (17) A. Group marketing director. (18) Q. And it's from Cliff Pennell, isn't it? Pennell. (19) Excuse me. (20) A. G.C. Pennell. (21) Q. G. Clifton Pennell, correct? (22) A. Yes. (23) Q. Who is your senior vice president counterpart in (24) marketing at this time, correct? (25) A. That's correct. Page 503 (1) Q. Along with Mr. lauco? (2) A. That's correct. (3) Q. Okay. I direct your attention to the first bullet (4) point under the heading Current Performance, where it says: (3) Camel's Ex. Reg. share of smokers (SOS) among 18 to 34 year (6) old male smokers for December 1988 (6 months rolling (7) average) is the highest level ever at 7.0, making it the (8) third largest YAMS brand on the market. This growth is (9) dtiven by 18 to 20 year olds at 10.8 points: (10) Is that accurately read? : ( t 1) A. Yes. (12) Q. Okay. Is it fair to say that you were able to (13) achieve remarkable growth in the repositioning of the Camel (14) brand? (15) MS. BIXENSTINE: Objection to the (16) characterization. (17) THE WITNESS: I think it was a successful (18) reposition. (19) MR. HOPPER: Q. And this document was dated (20) February 9, 1989? (21) A. Yes. (22) MR. L'ORANGE: '89. (23) MR. HOPPER: '89. Yes. Correct. Okay. Thank (24) you. (23) Q. Ms. Beasley, has it ever come to your attention in Page 504 (t) your work in the marketing department that at some time in (:) the 1950s there was publicity - excuse me, internal (3) doc6aients concerning potential•health hazards'relaced to the Page 498 to Page 30.3 51714 2160
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•••-a,.., • • a%.,r. eteyuuJw a uoaceo out, his - if (16) you use the term pecking order, what the pecking order. () 7) where does a director f)t in at R.J. Reynolds Tobaceo (18) Company. (19) A. Normally, a director reports to a vice president. (20) Q. And they would - would they head up a group or - (21) A. No, not necessarily. (22) Q. Did you get a chance to read the bullet points? I(23) know you read the first sentences. (24) A. I've read it. (25) Q. Do you see Mr. Nordine's conclusion that each Page 563 (1) smoker will be more valuable because there's going to be (2) fewer of them? (3) A. Yes. (4) Q. Now, Mr. Nordine does appear to be talking about a(S) decreasing or declining number of smokers available. (6) A. It sounds like that, although In the paragraph (7) above It he says flat to declining, so I don't know. (8) Q. Right. Do you see his - the last sentence on (9) this summary paragraph? (10) A. The nearly? (11) Q. The overall. (12) A. Oh, that last dot? (13) Q. No, the - I'm sorry, even beyond that. The last (14) sentence. (t5) A. Oh. Overall? Um-hmm. I see it. (16) Q. Did you read that? (17) A. Yes. (t8) Q. Again, Mr. Nordine concludes that the market will (19) be harder to enter for a new brand since growth of FUBYAS (20) and switchers will be shrinking. (21) Mr. Nordine does seem to be segregating out FUBYAS (22) to switchers. (=3) A. He does. (24) Q. Any idea as to why he would do that? (:5) A. Again, I think they were trying to emphasis - Page 564 (1) emphasize the importance of young adult smokers to the (2) ~ company. (3) Q. But why wouldn't he have used - young adult (4) smokers is a term that's been used by Reynolds for, what, (5) 20. 25 years? (6) MS. BIXENSTINE: Objection. (7) THE WITNESS: I don't know. (e) MR. IANECEK: Q. Young adult smokers has been a (9) term that you've been familiar with since you started at ( t0) Reynolds, correct? (t)) A. I think so, yeah. I mean I Tooker & Antz Lynn tseasley. Vol. II don't remember exactly (12) when I started hearing it. (13) Q. And in your capacity is in employee of Reynolds. (l4) have you seen documents that were created before you became ()S) an employee? (16) A. I've seen a bunch of them now. (17) Q. Right. And they reference young adult smokers as (18) young adult smokers, right? (19) MS. BIXENSTINE: Objection. What documents? (20) MR. JANECEK: Documents that predated (21) Ms. Beasley's employment at R.1. Reynolds Tobacco Company. (22) The ones she just said that she's seen. (23) THE WITNESS: I think some of those older (24) documents may have referenced it. (25) MR. JANECEK: Q. So young adult smokers appears Page 565 (1) to be an established term at Reynolds - an established term (2) at - (3) A. You know, I wouldn't say that. I thiok especially (4) by evidence of the documents we've already looked at today, (5) different people have used it differently. He's used it (6) differently here. (7) What I'm telling you is I believe - I sat through (8) the presentation that Diane Burrows gave back in the•mid (9)'80s, and what this group was trying to say is younger adult ()0) smokers are important to this company, pay attention to ()1) them. And that's why he's separating them out. (12) Q. Younger adult smokers, not younger adult - I(13) thought I heard you say switchers, but I think you said (14) younger adult smokers? (15) A. Younger adult smokers are Important to this (16) company. Pay attention to them. That was their message. (17) Q. If you can turn to page 9 of this document. (18) A. Does It have numbers on it? (19) Q. Yeah, the bottom of the page. This one actually (20) does have page numbers. (21) A. Oh, I see: (22) Q. What I'm particularly interested in is just the (23) statement on item 1 near the bottom of the page about (24) FUBYAS, currently about 2.2 incremental share points. (2S) Would you generally agree or disagree with that Page 566 (i) proposition, that there's about 2.2 incremental share points (2) ot 18 year (415)392-0650 - S/30/97 old smokers available each year? XMAXf1J1 (3) A. I don't know. Again, I told you, I don't know (4) what percent.of adult smokers are IS. I just don't know. I(S) don't know what it was back In - whenever this was (6) written. I don't know if this is dated or not. 1 (7) Q. But if Mr. Nordine said that that was the (8) incremental share point, he probably bad a good basis for (9) saying that? (10) A. I don't know what his basis was. (11) Q. But you said that he's a competent person. He (12) probably didn't just make that number up? (13) A. I don't know where he got it. He could have been (14) estimating. You know, just because I said he was a (15) competent person doesn't mean he was never wrong or based (16) things he said on assumptions or - I mean I don't know (17) where he got It. It doesn't say. He could have just been (18) estimating himself. (19) Q. He could have b•een guessing? (20) A. He could have beea=uessing. (2t) Q. But would a competent - would a Reynolds (22) employee, a competent Reynolds employ that's movfd up to (23) director of a group guesi about statistics as it related to (24) smoking? (25) MS. BIXENSTINE: Objection. Calls for Page 567 (1) speculation. And it's argumentative. (2) THE WITNESS: Again, I told you. I don't know (3) where he got it. He could have estimated it. He could have (4) used government data. Who knows. (S) MR. JANECEK: Q. He probably got it from many (6) somewhere, though? (7) MS. BIXENSTINE: Objection. (8) THE WITNESS: I don't know. I don't know. He (9) doesn't say where it comes - where it came from. (10) MR. JANECEK: Q. Mrs. Beasley. I'm going to hand ()1) you a document which I'll have the court reporter mark as (12) Plaintiff's Exhibit No. 23. (13) (Exhibit 23 marked.) . (14) THE WITNESS: I can't see the date on it. Does (15) your copy - can you read the date on it? i (16) MR. JANECEK: Q. It's February :0 - it looks to (17) me February 20, 1985. (18) A. The best you can tell? Okay. (19) Q. We ought to talk about your counsel for (20) depositions in the future not stamping these things (21) confidential so we can read the dates. I believe it's '85. (22) as well. If you look at the top, the next page, it's got an (23) 85-33401 number. Do you see that. on Page 562 to Page 567 51714 2166
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esA Manginl v. R.J. Reynolds Tobacco Lynn Beasley, Vol. II - 5/30/97 xMAx(M) Camel turn around and and overbroad. you don't (16) bave that, It's difficult. Page 536 (21) MR. JANECEK: Q. Do you have a (17) Q. So you need an edge? (1) start increasing its share? general idea as to (22) whether (18) A. You need to offer consumers (2) A. Yes. switching gains are easy or difficult to something that they (19) don't (3) Q. And when was that? obtain? already have with their current (4) A. After 1988. (23) MS. BIXENSTINE: Objection. brand. It's exactly (20) what I said. (5) Q. Would that have been after the Asked and answered. (21) Q. All right. And we were talking Joe Camel (6) advertising campaign (24) THE WITNESS: There is no about the page (22) just before, 6215. was instituted? generality. It depends (25) on a brand where the author had indicated that first (7) A. It would have been after the and what that brand has to offer to the (23) usual brand has the long-term Camel repositioning (e) in 1988. consumer. strategic edge? (9) Q. Now, just so I'm clear, you did Page 538 (24) A. Um-hmm. testify that you (10) thought that it was (1) MR. JAN)~CEK: Q. So you don't (25) Q. Is that the - that's not the edge not that difficult to establish a gain (t 1) have any general (2) understanding as you're talking in market share through switching. to whether it's difficult or not difficult? Page 540 ( i2) MS. BIXENSTINE: Objection. (3) It depends on the situation? (1) about? Mischaracterizes the (13) witness' (4) MS. BIXENSTINB: Objection. (2) A. No. It's not. testimony. Objection. Asked and (5) answered. (3) Q. Do you see the bottom of page (14) THE WITNESS: That's not what 1 (6) THE WITNESS: That's not what I 6215? said. said. There's no (7) generalization (4) A. Yes. (15) MR. JANECEK: Q. Is it difficult? about whether it's difficult or easy. If (5) Q. Do you see the share of (16) MS. BIXENSTINE: Objection. you (8) have a brand that has smokers age 18 to 20 (6) portion? Asked and answered. advantages then the consumer sees (9) (7) A. Yes. (17) THE WITNESS: Is what difficult? those advantages and wants those (8) Q. And do you see it down there by (18) MR. JANECEK: Q. Is it difficult to advantages, then you can (10) generate Camel? establish net (19) gains in - through switching. (9) A. Yes. switching? (11) If you don't, then it's very difficult (10) Q. Does that indicate that after the (20) A. It depends on the idea you to generate (12) switching. implementation (11) of the Joe Camel have. If you have a(21) good idea; a (13) MR. JANECEK: Q. If you could campaign the share of smokers aged brand that offers advantages versus turn to the next (14) page, 6216. Do you 18 to 20 (12) increased? other (22) brands that are meaningful see that? (13) A. The share of smoker to people, then you can get net (23) (15) A. Yes. increased from 1987 to 1988. switching gains. (16) Q. This is discussion - this is the (14) Q. Was - did the 18 to 20 year old (24) Doral Is a great example of that. slide or page (17) discussing brand segment, to the (15) best of your It grew from (25) almost nothing to switchers. Do you see that? knowledge, track the general being the company's largest brand. (18) A, Yes. discussion we had (16) about the brand Page 537 (19) Q. Top left corner? in general declining until some point (1) Compelling difference versus (20) A. Um-bmm. Yes. and (17) then holding level and then other brands. (21) Q. Did you get to the bottom with increasing after 1988? (2) Q. So it depends on - the second to the (22) last bullet point? (18) A. Well, !f you just look at the (3) A. Strong switching. Now, if (23) A. Yes. numbers that are (19) right here, your brand doesn't (4) really have any (24) Q. Can you read that for me? 1983, 3.3, 1985, 3.3, 1987, 3.2, that advantages versus other brands, (25) A. It says: Very difficult to looks (20) pretty flat to me. there's no (5) meaningful difference establish net Qain. (21) Q. So that's - the IS to 20 year old there, then switching is going to be Page 539 market pretty (22) much mirrored the (6) very difficult. (I) Q. So at least to the author of this general Camel brand market? 1?1 Q. So it kind of depends on the - document, it (2) appears that he or she (23) A. It looks like It from this data. the approach you (8) take as to whether thought that it would be difficult to (3) (24) Q. Is a - I'm not a marketer and I it will be - switching will inereast or - establish a net gain through switching. don't track how (25) products are doing (9) MS. BIXENSTINE: Objection. (4) A. Sure. It Is If you don't have a or how shares are doing. Is it - a 2 (10) MR. JANECEK: Q. - it will be brand that has (S) advantages versus Page 541 difficult to get (I 1) switching to increase other brands, it's difficult. (1) point jump in share, is that a good or be easy to get switching increases? (6) Q. Do you agree or disagree, you result? (12) MS. BIXENSTINE: Objection. have read through (7) this page, right, (2) A. Yes. ( t 3) THE WITNESS: Again, it depends that gives the total context of what the (3) Q. Is that a - how good a result is on, you know, what (14) you have to (8) author was trying to convey. that? offer to the consumer. If you have - if (9) ' A. You want me to read the (4) A. It's good. you (15) have something that has whole page? (5) Q. It's just good? It's not anything advantages 'versus other brands to (16) (10) MS. BIXENSTINE: Yes. special? offer the consumer, then you can get (11) MR. JANECEK: Q. Yes. (6) A. Well, it's good. It's certainly a switching gains. Doral (17) is a great (12) A. This is In fact what I've said, lot better than (7) just holding or example of that. It's very (13) difficult to establish net declining. ( t 8) MR. JANECEK: Q. What about gain. Need competitive edge. (8) Q. What's - have you been generally? ; (14) 1 sald you need something to involved in other (9) campaigns other (19) MS. BIXENSTINE: Objection to offer versus other (iS) brands It you than Joe Camel? the form ofthe (20) question. It's vague want to generate switching. And If (10) MS. BIXENSTINE: Objection. Page S35 to Page 541 (415) 392-0650 Tooker & Antz 4 51-4114 8,1103p,
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-- - ~~ ~Juu ucaiVcl, •Ol. tl -WOulf// XM.aAia1 the dates of those (10) other documents. I don't know what you're rcferencing. if you can take (t t) MR. JANECEK: Qe a look at the (12) first page, please. See the first sentence up there under (13) Background? (14) A. Yes. (15) Q. What's that say? (16) A. It says: Due to the importance of younger adult (17) smokers. Camel has developed a new advertising campaign (18) which is directly - directed solely towards this group. (19) Although the new campaign is very different from the current (20) campaign, it was developed to supplement but not replace the (21) Camel World Campaign. (22) Q. So the new campaign that's being discussed in this (23) market research document is directed solely at the young (24) adult smoker group - younger adult smoker group. correct? (25) A. Yes, that's what it says. Page 595 ( I) Q. So it doesn't have the secondary prospect. I think (2) that was your term, of 24 to 35 year olds? (3) A. 25 to 34. (4) Q. 25 - I got those backwards, dyslexia. (5) And if you can turn to the next page. (6) A. Yes. (7) Q. Can you read the paragraph about of the six (8) themes, do you see that there? The second paragraph? (9) A. Of the six themes, "Go With It" and the "French (10) Cameis" appear to attract the most positive attention. ( I i) General reaction to each theme was as follows. (1:) Q. So back in 1985, the French Camel was - it was (13) known at Reynolds or at least some people at Reynolds, (14) Mr. Caufield, certainly, that the French Camel was receiving (15) positive attention from younger adult smokers? Correct? (16) A. The French Camel. (17) Q. Is that a ye's? (18) A. Yes. (19) Q. Now, do you know when the T•shirt promotion you (20) talked about yesterday occurred? (21) MS. BIXENSTINE: Objection. Asked and answered. (22) It's in the record. r=3) THE WITNESS: I - what I said yes,.:rday was it (24) was December 'S5.January '86. (a) MR. JANECEK: Q. So it was after the focus groups Page 596 Tooker & Antz (1) that are being discussed in this document? (:) A. Yes. (3) Q. Almost eight months after? (4) A. More than that. (5) Q. More than eight months after? (6) Can you read for the record what the report on the (7) French Camels, do you see that, number 2 is? (8) A. Yes. (9) Q. What's that say? The title is French Camels, and (10) go ahead and read what's there. (1 I) A. These ads were well received due to the fun/humor (12) aspects of the cartoons. More than any other theme, the (13) French Camels appeared to attract the respondents' (14) attention. The main drawbacks of these executions were (l3) that: one, they may be more appealing to an even younger (16) age group and two, there is some confusion as to the meaning (17) behind them (some focus group members were hard-pressed to (18) explain the purpose of the ads). (19) Q. It was found from the focus group that the main (20) drawback of the French Camel was that it appealed to an even (21) younger age group? (22) MS. BIX£NSTINE: Objection to the form of that (23) question. It misstates the document. (24) THE WITNESS: What this says, and I just read It, (25) was the main drawbacks of these executions. Page 597 (1) And having looked at this, I am not surprised by (2) this result. As I have - as I covered with the FTC, this (3) is a version of the French Camel poster. They simpiy took (4) the head of the Camel, which is the French Camel poster - (5) MR. JANECEK: Q. Can you hold on one second? Can (6) you tell me which page you're on? Is that - (7) A. What numbers do you want to look at? - (8) Q. Why don't - since don't see them down the side, (9) why don't we use the once that start with RJM? (l0) A. RJM? So the last two numbers, maybe? (1I) Q. Lastthree'numbers, usually. (12) A. Okay. Last three numbers? 977. (13) Q. 977? Okay, So you're at 977? (14) A. Right. See that? Now, that is the version of the (15) Fre: :h Camel poster. The French Camel poster was just a(16) head of the Camel. While I didn't see this focus group (17) report, I wasn't aware it was done in 1985, what I can tell (18) you (413)'3;92-0650 is that in 1987 when we were developing the Joe Camel (t9) campaign, we developed an execution that used a punk (10) hairstyle Like this on Joe Camel. And what we found out, (21) because when we do focus groups among 18 to 24 adult (22) smokers, we would ask those smokers, "Does this . execution (23) appeal to people your age? To people older than you or to (24) people younger than you?" And there are executions, they (25) would say, "Hmm, I think that appeals to people younger than Page 598 (t) me" and we would eliminate. (2) Them. That is true .h ith any campaign you do. (3) That's how you find out that you have executions that have (4) maximum appeal among the right group. It does not say the (5) French Camel appeals to young. It says these executions, a (6) drawback of these executions. (7) Now, with a human model campaign or with a - the (e) illustrated trade character of Camel campaign, you will have (9) some executions that can appeal to an age group outside of (10) that which you were developing them for, and that's why you (11) do research to find that out. (12) And it simply identifies which we - that which we (13) confirmed several years later when we developed the Joe (14) Camel campaign. (15) Q. What did you confirm? That the French Camel was (16) younger than Joe Camel? (17) A. No. (18) MS. BIXENSTINE: Objection. (t9) THE WITNESS: That is not - (20) MS. BIXENSTINE: Mistates her testimony. 1 (2t) THE WITNESS: That is not what I said at all. (22) What I confirmed is that when you use - when we developed (23) the Joe Camel campaign, we did an execution similar to this (24) execution with tht punk hair, and we asked respondents in (25) the focus group. 'Does this execution appeal to people your Page 599 (1) age, people older than you or people younger than you?' And (2) when they said 'Younger than we are.' we eliminated the (3) execution. lt was an execution similar to this. (4) In any campaign, whether it uses a human or an (S) illustrated trade character, you will develop executions (6) that do not have a maximum appeal Page $9s to Page 599 51714 2169
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as^ Manpini v. R.J. Reynolds Tobacco regarding the protective order. (5) THE VIDEOGRAPHER: This concludes for today the (6) deposition testimony of Lynn Beasley. Four original - (7) actually, eight original videotapes were used. The original (g) videotapes will be retained by BarbaQelata and Associates in (9) San Mateo, California. Phone number. is - Area Code (10) 41S-S74•3603. We're going off the record at 6:38 p.m. (11) (Whereupon the taking of the Witness' testimony (12) was concluded for the day at 6:38 p.m.) (13) »-000--- (17) DATE SIGNATURE of the WITNESS 688 LY-0n Beasley, Vo1. II - S/30/97 Tooker & Antz (413Ty92-0650 Page 688 to Page 688
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IMO 00 .rKa IIN1. to Oltw. 411hny 116, 111f1•Sli1. .wr,ttwM1 M rWR J JMttII. U ar tnr•(. nU tCArlt. .ttlrrt a t« IrrM/'M .1 tI•IU.I a tw111/ .r /lrl tN r1111/ttn, a1/ Ntr/F~.t 111 trl/ rYrul ttl1. rr11 tWIH tb14. C/1t.nOMlT• r.1 rlu,. 11w+1 (IS) rlwr, 1306 /MR Str.,t• 1r r.Kltr. 01Ut+M1 /tll M111•NM• •wn.wta b tllrNtT11. W1Rtt• onM N trU tMtVl 111/phrll. MWw M pw11 w 0M11r 11 W 11c1 LNr.PIM1 .. W ttr~.M pM• t2r1 t11Wt1q1 aO. 61111 wtt t.... t/ hwl 1141 Ywae Stna rnw.rllt ww.,a. yyt•.ID. 42111 .•.ra.na b IOMt r,O/M!. .lte.s a t. L.ow Page 351 (1) as counsel on behalf of the Plaintiff in the Arch case. (2) JONES. DAY, REAVIS & POGUE, North Point, 901 (3) Lakeside Avenue, Cieveland. Ohio 44114, represented by KJM (4) F. BIXENSTINE. Attorney at Law, appeared as counsel on (5) behalf of the Defendants R.J. Reynolds Tobacco Company and (6) Mezzina Brown. (7) HOWARD. RICE. NEMEROVSKI, CANADY. ROBERTSON, FALK (8) & RABKIN. Three Embarcadero Center. Seventh Floor, San (9) Francisco, California 94111-4065, represented by PAMELA T. (10) JOHANN, Attorney at Law, appeared as counsel on behalf of (11) the Defendant R.I. Reynolds Tobacco Company and Mezzina (12) Brown. (13) HELLER. EHRMAN, WHITE & McAULIFFE, 333 Bush (14) Street, San Francisco, California 94104-2878, represented by (15) DANA L. BALLINGER, Attorney at Law, appeared as counsel on (16) behalf of Philip Morris. (17) LANE, POWELL, SPEARS, LUBERSKY, LLP, Two (t8) Embarcadero Center, Suite 2330, San Francisco, California (19) 94111•3910, represented by H. CHRISTIAN L'ORANGE, Attorney (20) at Law, appeared as counsel on behalf of Lorillard. (21) VIDEOGR^PHER: STEVEN LEFTWICH (22) BARBAGELATA & ASSOCIATES. 63 Bovet Road, Suite (23) 410, San Mateo, California 94402 (415) 574-3603. (24)- ...000--- Page 352 (1) PROCEEDINGS (2) THE VIDEOGRAPHER: We're on the record at 8:38 (3) a•m. This marks the beginning of Videotape No. S in the . (415)'192-0650 (4) continumg deposition of Lynn r0iAX111 Beasley on May 30th. 1997, at (s) 222 Kearny Street. 10th Floor. San Francisco, California. (6) The video operator is Steve Leftwich with Barbagelau and (7) Associates, 63 Bovet Road, Suite 410, San Mateo, (8) California. All counsel present have been previously (9) identified on Tape No. 1 and the witness has been sworn in. (10) You may continue. (11) EXAMINATION BY MR. JANECEK (Resumed) (12) MR. JANECEK: Q. Ms. Beasley, I'm going to remind (13) you you are still - under oath. Is that - (14) A. Yes, I understand. (15) Q. Okay. Is there any reason why you wouldn't be (16) able to testify truthfully and accurately today? (17) A. No. (18) Q. Ms. Beasley, your counsel has handed me a copy of (19) your resume, which I'Il have the court reporter mark as (20) Plaintiffs Exhibit No{ 19. (21) (Exhibit 19 marked.) : (22) MR. JANECEK: Q. Would you take a iook at that. (23) A. Yes. (24) Q. Is that in fact your resume? (23) A. Yes, it is. Page 353 (I) Q. And these were the positions you held during the (2) dates that are identified in the left-hand side? (3) A. Yes. Just at the very last position, Vantage, (4) More, Now, needs to - it's Winston, Camel, Salem, Vantage, (5) More. Now. That was added after - it was added in the last (6) ntonth, Vantage, More, Now. (7) Q. Tell you what, do you have a pen there? (8) A. I can get one. (9) Q. Can you - (10) A. Write it in? (11) Q. - go abead and write it in? (12) A. Is that what you want me to do? Got it. (13) Q. Just so that my copy looks like your copy, the (14) item entry at 7•95 should read - just add Vantage, More and (15) Now? (16) A. Yes. I rewrote it so that - I put 5-97, and then (17) I wrote them all la adding Vantage, More, Now. Do you want (18) this to look at? (19) Q. Sure. Ms. Beastey, I'll hand you a document that (20) was previously. marked as Plaintiffs Exhibit No. 15. (21) A. Um-hmm. (22) Q. When we left off last night we were talking about (23) this exhibit. (24) A. Um-hmm. Yes. (25) Q. Do you see in the second paragraph the Page 347 to Page 353 51714 2149
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aA Manginl v. R.J._ _R_ e_ ynolds Tobacco bacco (t:) MR. JANECEK: Q. Mrs. Beasley, in 1985. February (13) of 1985, do you know who Mr. Rick Caufreld reponed to? (14) A. I'm not sure. I don't remember. (15) Q. In 1985 was he the head of the Camel brand? (16) A. Yes. (17) Q. So other than maybe reporting to a VP or someone (18) more senior that would have responsibility over several (19) brands, he was the person responsible? (20) A. For Camel. ' (21) Q. For Camel. (22) A. Yes. (23) Q. And in February of 1985, you were assigned to the (24) Camel brand, right? (25) A. That's correct. Page 605 (1) Q. When the French Camel T-shirt promotion was (2) undertaken in 1985, was Mr. Caufield still the head of the (3) Camel brand? (4) A. Yes. (5) Q. And you were still present or assigned to the (6) Camel brand at that point in time? (7) A. No. (8) Q. You had just - just left the Camel brand? t9t A. I- gee, where d1d that go? ()0) Q. You've got an 8-85 on your resume. ( t)) A. Right. I left In 8, and it ran in - I think (12) December '8S, January '86, 1 believe it rac. (13 ) Q. Do you remember if it was in production or it was (14) in planning at the time you were with Camel on the Camel (15) brand? r 161 A. I think it was. c:'t Q. So you knew that the Camel T•shirt. the French (18) Camel T-shirts. were going to be used as a promotion later ( 19) on that year? i:0, A. 1'es, I think so. , : ti Q. But you weren't aware that focus groups had been (22) done using the French Camel at that point in time? t:3i MS. BIXENSTINE: Objection. . Asked and answered. (:3) THE WITNESS: No. as I told you, I was not aware (25) of this. It went to my boss. It do nut go to me. I was Page 606 (1) not working on advertising, and my boss does not share every (2) memo he receives with me. (3) MR. JANECEK: Q. Obviously, Mr. Caufield. since (4) he's the person that it's aQ~dressed to. would have been (5) aware of the findings of the focus groups with respect to (6) the French Lynn Beasley, Vol. lI - S/30/97 Camel? (7) MS. BIXENSTINE: Objection. (8) THE WITNESS: This report went to Mr. Caufteld. (9) MR. JANECEK: Q. So Mr. Caufield would have known (10) that the French Camel that was used on the T-shirt (11) promotions might have skewed younger than the target that (12) Reynolds was looking for? (13) A. That's totally Incorrect. (14) MS. BIXENSTINE: Objection. (IS) MR. JANECEK: Q. That's incorrect? (16) A. That's absolutely Incorrect. (17) What I explained In this document, and this is not (18) the French Camel that ran on the T-shirt. There are some (19) executions in here that thir report says may skew too young. (10) And as I explained already, that executions for a(21) eampaign may skew too young and you can create those, and in (22) fact when I directed the development of the Joe Camel (23) campaign we bad executions similar to these that did skew (24) too young and we did eliminate. (23) These executions did not run and ther do not Page 607 (1) represent what ran on the T-shirt. And I would ask you not (2) to mischaracterize what I've said. (3) MR. JANECEK: Ms. Beasley, I'll have the court (4) reporter mark the next Exhibit as Plaintiff's Exhibit No. (5) 27. (6) (Exhibit 27 marked.) (7) MR. JANECEK: Q. Have you seen this document (8) before? (9) A. No. (t0) Q. I just have a couple questions on this one, so I(11) don't know that you need to spend a lot of time on it. (12) The first page, do you see the purpose, where it (13) identifies younger adult (18-20) smokers? (14) A. Yes. (1S) Q. Do you know if in 1985 the accepted term of (16) younger adult meant the 18 to 20 market as opposed to - (17) MS. BIXENSTINE: Objection. (t8) MR. JANECEK: Q. - 18 to 24 ' market? (19) MS. BIXENSTINE: Asked and answered. (20) THE WITNESS: Again, as I told you earlier. I(21) think that some people when they said younger adult would (22) describe I8 to 20. When I used younger adult, I describe it (23) as 18 to 24. 1 think in the documents, you will see it's (24) described both ways. It's clearly adult•smokers. (2S) They're - Tooker & Antz (41SN92-0650 1MAXrq1 both groups are younger adult smokers. Page 608 (1) Q. Now, we've seen a couple of reports, a couple (2) different types of reports now. Where does the consumer (3) research report come from? (4) A. Published by the marketing development department, (5) which was the marketing•research department. (6) Q. So a consumer research repon, • while the title may (7) have changed. it's not necessarily a different type of (8) report from a marketing repon or a strategic research (9) report in the different titles we've seen? (10) MS. BIXENSTINE: Objection to the form of the (11) question. It's absolutely incomprehensible. (12) THE WITNESS: This was prepared by the marketing (13) development department, but it's called a consumer research (14) report. (1S) Now, I don't know. I haven't read the document. (16) why it has a different title than strategic research (17) report. It could be because - well, somebody else prepared (18) it. So maybe their group was called consumer research. I (19) don't know. (20) MR. JANECEK: Q. But to you, the designation as a (21) consumer research report doesn't hold any special meaning? (22) A. No. (23) Q. If you could turn to page 3. and this one does (24) have numbers at the bottom of the page, so the middle - do (25) you see those? Page 609 (1) A. Yes. (2) Q. Take a look at item number 4 on shopping behavior. (3) A. Yes. (4) Q. This seems to be saying to r,u that younger adults (S) aged 18 to 20 purchase their cigarettes predominantly in (6) convenience stores and service stations as opposed to (7) grocery stores or larger stores. (8) A. I don't know about predominantly. What it says is (9) high level of purchase. (10) Q. Or higher frequency. (11) A. It says high level of purchase in convenience (12) stores, service stations and vending. High pack . purchase (13) rate. (14) Q. Higher frequency. (15) A. Higher frequency of purchase. (16) Q. So is that - is my understanding generally (17) correct. am I reading that document correctly? Page 60-t to Page 609 51714 2170
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_ _ . _, _ _ . ,...~.... you were appointed to (4) a group that looked at the Hispanic and black markets, rijht? (5) A. Looked at Hispanic and African American adult (6) smokers. (7) Q. Adult smokers markets? (8) A. There's a difference. (9) Q. And there wasn't a group like that before it was (10) formed and you headed that up? Is that correct? (11) A. That's correct. (12) Q. So it seems that sometime in the mid '80s. (13) Reynolds got the idea that the Hispanic and the black (14) markets for young adult smokers were an important segment (13) that Reynolds had been overlooking in the past? (16) A. It doesn't say just young adult smokers. (17) Q. No, that's true. It just says black market and (18) Hispanics. (19) MS. BIXENSTINE: What's your question? (20) MR.IANECEK: Q. My question is if in the mid (21) '80s Reynolds did take steps, efforts to look at the (22) Hispanic and black market. (23) A. %'hat do you mean, took steps, efforts? (24) Q. Was the Hispanic or black market, in your terms, a (25) prime prospect group prior to the mid '80s? Page 574 ( i1 A. I don't know prior to the mid 'SOs. (2) Q. During your tenure, before 1985. During your (3) tenure in the '80s. (4) A. In the entire years of all the '80s? Or - what (5) are you saying? (6) Q. Before - before you headed up the strategic group (7) that - that did look at the Hispanic and black markets. (8) A. You know, again, I don't know if they did - 1(9) don't know if they did much research or not. It seems to me ( t0) that Winston had Hispanic advertising, but I just can't (11) remember exactly the year. i t:i Q. But at some point in time after you joined (t3) Reynolds, was there a g reater importance imposed upon the ; 14) Hispanic or black markets? (15) MS. BIXENSTINE: Objection to - the form of the (16) question. (t7) THE WITNESS: It wasn't a greater importance (18) imposed upon the markets. We did - I think, I'm not sure (19) what was - all what was done previousiy, but when I headed (20) special markets we did research on adult Hispanic smokers (21) and adult African American smokers. (22) MR. JANECEK: Q. But there wasn't any sort of (23) group that did look at the Spanish or black markets Tooker & Antz a.Jsas uw.cJ, • VI. tl -,*/JU/Y7 before (24) you headed that group up? Not that you're aware of? (23) A. In marketing there wasn't a group. I don't know Page 575 (1) if there were people In research working on that (2) previously. I don't - I just don't recall. (3) Q. If you could turn to the last pagc, the second (4) page here. (5) A. Yes. (6) Q. This document seems to be identifying a couple of (7) studies. Do you see that? (8) A. Right. (9) Q. Can you look at the number S? (10) A. Yes. (11) Q. What study is being identified there? (12) A. These - the way I read this document is It says (13) these are proposed activities. And one of the proposed (14) activities Is a smoker versus nonamoker differences custom (13) research. (16) Q. And then it would have been - the proposed (17) completion date was September of 1985? (18) A. Right. (19) Q. Do you know if that study was ever completed? (20) A. No. (21) Q. Do you know if it was ever begun? (22) A. No. (23) Q. Who is E.J. Fackelman? (24) A. Ernie Fackelman. (25) Q. Who - in 1985, who was Ernie Fackelman? What was Page 576 (1) his role? (2) A. He was In marketing research. (3) Q. Did he have a title that you know ot? (4) A. I don't know what his title was. (5) Q. Was he a big boss or was he more of the account (6) exec or I can't remember what your original title was, the (7) entry level position. (8) A. Well, I believe Dick reported to him. (9) Q. So you think Mr. Fackelman might have been (10) Mr. Nordine's boss? - ( l 1) A. I think he was. (12) Q. Is Mr. Fackelman still with R.J. Reynolds Tobacco (13) Company? (14) A. No. (IS) Q. Do you know when Mr. Fackelman left R.1. Reynolds (16) Tobacco Company? (17) A. Gosh. I would say within the last two years. (18) Q. Do you know what his title was xwAxn1) after be left or (19) before -just immediately before he left? (20) A. Immediately before he left he was head of (21) marketing research. (22) Q. Would be have been an officer or VP then? (23) A. He was a vice president. (24) Q. A senior vice president? (25) A. No, I think be was a vice president. Page 577 (1) MR.IANECEK: Mrs. Beasley, I'll hand you a (2) document which I'll have the court reporter mark as (3) Plaintiffs Exhibit No. 25. (4) (Exhibit 25 marked.) (5) THE WITNESS: Can we take a break? (6) MR.IANECEK: Sure. Five minutes or - (7) THE VIDEOGRAPHER: We're off the record at 3:48 (8) p.m. (9) (Brief recess in proceedings - 3:48 to 4:06 pm.) (l0) THE VIDEOGRAPHER: We're back on the record at (11) 4:06 p.m. (12) MR. JANECEK: Q. Mrs. Beasley, did you get a (13) chance to look at that before you left? j (14) A. This? No. (15) Q. Take a look at that. In the meantime, for the (16) record - (17) MS. BIXENSTINE: Is this Exhibit 25? (18) MR.IANECEK: 25. In the meantime, for the (19) record. I will let the record reflect that our five minute (20) break once again went to 15 minutes. (21) THE WITNESS: I've looked at it. (22) MR. JANECEK: Q. Have you seen this document (23) before today? (24) A. I don't remember it. (25) Q. I'm sorry? Page 578 (I) A. I don't recall it. (2) Q. You don't know if you've seen this document before (3) today? (4) A. I don't recall seeing it before. (5) Q. With respect to some of the other documents we (6) were talking about, your answer was an equi% ocal no. (7) Does this mean you might have seen this document (8) before? (9) A. I don't think so. (10) Q. Ms. Beasley, what's a franchise smoker? (11) A. That's someone, an adult smoker who currently (12) smokes the brand you're talking about. (13) Q. What, a Reynolds brand? (14) A. No. Like if you're talking about Camel, a Camel (IS1 franchise smoker is an adult smoker M ho smokes Camel. lf (16) ~ou're talking (41S).392-0650 Page 573 to i'age 378 51714 2167
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i•••++s+•+I •. ....+. aceyoytua a ooacco LyOp Beastey, Vol. Again, you know, it's (4) younger adult smokers were a - were identified as an (S) imporant opporruniry for Re,vnolds. So if you put those (6) wordstogether, younger adult smoker opportuniry. I imagine (7) those words were put together. (8) MR. JANECEK: Q. Ms. Burrows. you saw on the (9) title that the document indicates that the review of RJR's ()0) most critical strategic need - younger adult smokers? (11) A. Yes, that's what it says. (12) Q. Do you see that the document starts talking about (13) opportunities for two new technology based products. (14) A. Yes. (1S) Q. And requesting R&D commitment to develop products? (16) A. Yes. (17) Q. So in grabbing that younger adult smoker (18) opportunity, was Reynolds developing cigarettes that would (19) be more likable or more enjoyable by younger adults? (20) A. I don't know about Reynolds. I don't really know (2t) If this was a document that was followed up on or who it was (2:) given to or who wrote it. (_3) I can tell you on Camel, when I was on Camel in (24) 1987 and 1988 we tested Camel products versus Nlarlboro among (25) adult smokers 18 to 24 to assess Camel's product Page 616 (1) performance. i:t Q. You also introduced new brand Iines of Camel that (3) would have been directed towards the younger adult smokers. 14) A. Again, you saw a document about Camel Wides that (5) said 18 to 34 adult smokers, primary emphasis 18 to 24 adult (6) smokers. I believe that's what the Camel Wides document (7) said. (8) Q. I think it was 13to24. (9) A. .No, it wasn't of the that was a typo. There was a(l0) sheet right on that document that said target, colon, 18 to ()1) 34 adult smokers. Primary emphasis, 18 to 24 adult (12) smokers. That is what that document said. (13) Q. It dion't have the indication 18 - or 13 to 24? (14) Because I mean we can look at the document. (15) MS. BIXENSTINE: Objection. Objection. (16) THE WITNESS: The document had attached right to (17) it a sheet which said Target, colon. 18 to 34 adult smokers. (18) primary emphasis 18 to 24. Tooker & Antz ~ (19) MR. JANECEK: Q. So you're oot talking - (20) MS. LAPORTE: Move to strike as nonresponsive. (21) MR. JANECEK: Q. You're not talking about the (22) document that we were looking at, the first page of the (23) document that identified it as 13. You're talking about (24) subsequent pages that were attached to that document, right? (25) MS. BIXENSTINE: Objection. Page 617 (1) THE WITNESS: I'm talking about part of the (2) document. (3) MR. JANECEK: Q. Now, if you can turn to the next (4) page, the document's discussing refocusing efforts against (3) younger adult smokers. Do you see that? The second bullet (6) point? (7) A. Right. The second bullet point. (8) Q. And it identifies Camel's 7Sth. The marketing (9) programs clearly targeted is Camel's 75th. What is that? (10) A. What do you mean, what is that? (t I) Q. What does Camel's 75th mean? (12) A.1 believe it would have been the launch of the (13) Camel7Sth birthday celebration in 1988. (14) Q. So that's the launch of the Joe Camel campaign? ()s) A. The launch of the 7Sth birthday celebration for (16) the Camel campaign - for Camel brand In 1988 that included (17) the Joe Camel campaign. (18) Q. So is the Joe Camel advertising campaign still (19) referred to at Reynolds as the Camel 75th? (20) A. No. Because we celebrated the 7Sth in 1988. That (21) was the 7Sth birthday of Camel. (22) Q. Do you see the next bullet point, it talks about (23) strategic marketing planning group formed? (24) A. Yes. (23) Q. What is that strategic marketing planning group? Page 618 (1) A. I don't know, but it could be that strategic (2) research group. (3) Q. Were you aware that there was strategic - (4) strategic marketing planning group formed to address issues (5) such as younger adult smokers? (6) A. Again, I said I don't know exactly what this (7) refers to, but I suspect It's that strategic research group. (8) Q. And you were aware that there was a strategic (9) research group that a was specifically looking at younger (10) (415)592-0650 Page 615 to Pu-,e 620 51714 2171 Q - S/30/97 X,,,,X,4JI adult issues? (11) A. It says formed to address issues such as younger (12) adult smokers. (13) Q. But you were aware - my question is you were (14) aware of that group? (IS) A. I was aware of the strategic research group. (16) Q. When it was in existence? (17) A. Yes. (18) Q. When was it formed ! (19) A. I don't know. ; (20) Q. Can you give me an estimate? Was it immediately (21) upon your arrival or sometime - (22) A.1 don't know. (23) Q. You just don't recall? (24) A. No. (25) Q. You don't think it was do you? Page 619 recently. (1) MS. BIXENSTINE: Objection. (2) THE WITNESS: Recently? (3) MR. JANECEK: Q. They formed it within the last (4) year or two? (5) A. No. Clearly not. (6) Q. Sometime in the '80s? (7) A. The document - I think that document is dated in (8)1984? (9) Q. This one is, yes. (10) A. And it says strategic research (11) Q. Well. no, the document you're pointing to is (12) actually Morrissey Exhibit No. S- or Plaintiff s Exhibit (13i No. 5. (14) A. It's not that one, then. I don't know - (15) Q. That's the one. The younger adult from Burrows. (16) A. Is that It? (17) Q. Platntiffs Exhibit 5? (18) A. Right. And that was in 1984. So I'm assuming (19) there was a strategic research group in 1984. (20) Q. Now, was there another group formed? Because this (21) document's talking about the Camel 75th and also discussing (22) forming a strategic marketing group. (23) A. I told you, I think - don't knoN - I think what (24) they're talking about here is that strategic research group. (25) Q. So this doesn't mean that Reynolds formed a _ Page 620 (1) particular group. This is just identifying that such a (2) group had been formed previously? (3) A. I think so. You know. I don't know. (4) I see in this document that they refer to younger (5) adult smoker s and they're c.:gorizing it as 13 to
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$sA Mangini .. R.J. Reynolds Tobacco Lynn Beasley, Vol II S/30/97 ,,,,,x ,., (9) MS. BDCENSTWE. Oblectton to (2) MS. BDCENSTINE: Objectton. (.3) A, What advenisiag does is it the form of the (10) question. (3) MR, JANECEK: Q. -among creates a brand image (24) that vou (11) THE WPPPfESS: What do you people that can't (4) read? hope your target consumer, in our mean, what about people (12) who can't (5) MS. BDCENSTINE: Asked and case an adult (2S) smoker, fInds read? answered. meaningful and relevant and unique (13) MR. JANECEK: Q. Well, part of (6) THE WITNESS: I've already and Reynolds market at (14) least is going to answered (7) that.) be people that can't read. Functional (8) MR. JANECEK: Q. Could you give (15) illiterates. I'm assuming that some me your answer. (9) because I didn't of them can buy (16) cigarettes, hear it the first time. (17) MS. BIXENSTINE: What's the (t0) A. If someone cannot read, I question? What about (18) them? doubt that a copy ad (11) would be (19) MR. JANECEK: Q. What type of effective with them. advertising would (20) you expect (12) Q. Do you have the same belief or would be more effective with someone conviction or (13) opinion with respect that (21) couldn't read? Copy or to an image-based ad would be more image? (14) effective or less effective? (22) A. I- look, If s person can't (15) A. I don't know. read, then it would (23) be pretty hard (16) Q. Are you aware of the FDA's to react to an ad with copy if they conclusion that (17) advertising helps to can't (24) read. create an image of the brand and (18) (25) Q. So if you wanted to sometimes an image of the brand's communicate a message to them, user? Page 626 (19) A. No, I havea't - (1) an advertising message, you would (20) Q. Would you generally agree with need to use images? that principle, (21) that advertising can (2) A. If you - I don't know wbat - create an image for the brand user? you know, I(3) haven't - again, I (22) A. I don't know what that means. don't know what you would do. I Advertising can (23) create an image don't (4) know people - I haven't for the brand. studied people who are illiterate. (24) Q. And that image doesn't (5) When we've done research translate to the user? among adults smokers, (6) it's been (25) A. I don't know what that - what among people who can read. You do you mean by the know, I haven't (7) done research Page 628 among people who can't read. ()) tmage translate to the user? 18) Q. Do you think that a copy (2) Q. That use of the brand creates advertising based (9) campaign would the image of the (3) user. be effective - (4) A. Say that again? The what? r to) 41S. BIXENSTINE: Objection. (3) Q. That advertising helps to create ( t t) MR. JANECEK: Q. - among an image of the (6) brand and people that can't read? sometimes an image of the brand's 1 121 MS. BIXENSTINE: Asked and user. That by (7) smoking Camels, answered. you're a particular person or a r 13) THE WITNESS: I've already particular (8) group. answered that. (9) MS. BIXENSTINE: Objection. 114) MR. lANECEK: Kim. I've been real Vague and compound. patient. you (15) have continuously (10) THE WITNESS: If you want to read badgered me and the other counsel that statement (11) again I'll try to react (hat was (16) here about waiting until the to it. witness finishes, yet you are (17) the (12) MR. JANECEK: Q. Here's the biggest violator of that rule. Please wait question: Do you (13) believe that unul I'm (18) done'with my question .. people that are smoking Camel before you object. Is that - cigarettes are (14) making a statement (19) MS. BIXENSTINE: You paused. I about who they.rey thought you were (20) done. I will wait. (15) A. Making i statement-well- (:1) AlR. JANECEK: Can you read because they chose (16) Camel? Or - back the question? I(22) don't know if I (17) Q. Because they chose Camel. got an answer. Did you answer that (23) Because they smoke (18) Camels. question? You don't know? They're a Camel smoker. ;:4) (Testimony read as follows: (19) A. I think that - are they making (25) Q. Do you think that a copy a statement about (20) themselves? advertising They could be. They could not be. Page 627 (21) Q. That's not something that (t) based campaign would be effective advertising does or the (22) brand - image does? Tooker & Antz (415)`S92-0650 Pige 629 (1) therefore wants to buy that brand; provides aa image and (2) product information that makes that brand more attractive (3) than some other brand. (4) Now, some advertising has people in It. That (5) might create an image of who uses the brand. (6) Q. So is that a way to say that advertising can be (7) used to create a user image? (8) A. It - If you have - you can create an image of (9) who uses the brand by having people in the ad and showing (t0) people and people can take away from that these are the kind (1)) of people who use this brand. (12) Q. And you want the user to be proud of that brand (13) and try to get his friends or someone else to smoke that (14) brand? (15) MS. BDCENSTINE: Otjjection. (16) THE WITNESS: You want the advertising to (17) communicate information about the brand that is meaningful (18) and relevant to an adult smoker and then they will choose (19) your brand over another brand. (20) MR. JANECEK: Q. Secondarily, don't you want the (21) person that's using your brand to let the world know. let (22) his peer group know that he smokes that brand and they (23) should smoke that brand, too? (24) A. No. (25) Q. There's no - no concept in advertising talking Page 630 (1) about creating a user image, and not the people that are in (2) the ads, but the people that use your product? (3) A. Obviously, as I've described for you before, if (4) you have a well-defined brand Image, if you have a(S) well-defined brand image and when people see someone else (6) smoking a brand, they might think of that brand image. You (7) know, obviously, you smoke Camel cigarettes, you pull out a (8) pack of Camels, someone else sees you, they might think (9) about the brand image that has been created in the (10) advertising. (11) Q. That says you're fun. irreverent. rebellious, (12) t.`•;tt's why yuu -moke Camels? • (13) A. No, It doesn't say that's wh% Page 625 to Pat;e 630 51714 2172
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BSA Mangini v• R.J. Reynolds Tobacco Lynn Beasley, Vol.1I - 5/30197 XMAX(Vi aging and by 1990 will be 35 and older, (24) Q. Right. Okay. So I think you're (18) MS. BIXENSTWE: Objection. is (to) that your general understanding? right. I did (25) misspeak. (19) THE WITNESS: Not really. 53, 49, Is that generally correct? Page 559 50. 54. (20) actually an increase. So no, (11) MS. BIXENSTINE: Objection. (1) This - this is indicating that fewer it doesn't - it doesn't show (21) that at Compound. people (2) generally, whatever age all. I'm looking at the numbers that are (12) THE WITNESS: These people group, are taking up smoking than (3) on this (22) sheet of paper. See where it were born 1946 to (13) 1961. So I guess they were in the past. Is that - says number of smokers? You (23) they're a little - so it will probably be (4) MS. BIXENSTINE: Objection. know, it goes down then it goes up, (14) about, what, 36, 37 today, and (5) THE WITNESS: It's the percent of then it goes up again, (24) then it goes older. the 18 plus (6) population that are down. In pretty small changes, (t5) MR. JANECEK: Q. And did you smokers. actually. read the first (16) sentence on this (7) MR. JANECEK: Q. Right. So the - (25) MR. JANECEK: Q. If you can turn page? the people (8) that are taking up to the next (17) A. First sentence on the page? smoking, the incidence of smoking is Page 561 (18) Q. First paragraph, it's ulking (9) declining? (1) page. Mr. Nordine has concluded about over the next (19) five years. The (10) A. The incidence of smoking that there will be fewer (2) smokers in very top? ' during this time period, (11) the '90s. Do you see that? Starting - (20) A. No; I had not read that. Yes, according to this document, it's (3) actually the bullet points after the I've read it: declined. The percent of 18 (12) plus in summarizing (4) paragraph. (21) Q. Yotj and Mr. Hopper were people who chose to smoke was (5) A. What he says is: In having a discussion about (22) there declining. summarizing, the market will (6) be being fewer smokers available (13) Q. There's fewer people deciding flat to declining. presently - i to smoke, in (14) laymen's terms? (7) Q. Right. Do you know Mr. (23) MS. BIXENSTINE: Objection. (15) A. It looks - It looks like that, Nordine? (24) MR. JANECEK: - than there are - yes. (8) A. Yes. Kim, if you (25) cannot over - talk over (16) Q. Do you generally agree with that (9) Q. Do you think he's a competent me. I would appreciate that. concept? person? Page 558 (17) A. I don't - I'm assuming it's (10) MS. BIXENSTINE: Objection. (1) Q. You and Mr. Hopper were - had true. I don't have a (18) reason to (i 1) THE WITNESS: Sure, I think he's a a discussion (2) earlier on there being disbelieve it. competent (12) person. fewer smokers available or that the (3) (19) Q. And the result of fewer people (13) MR. JANECEK: Q. He was a good number of smokers was on the decline. beginning to smoke (20) would mean employee for (14) Reynolds? Do you recall that? that there are fewer people available to (15) MS. BIXENSTINE: Objection. (4) A. I believe the discussion was a (21) company such as yourselves, (16) THE WITNESS: I can't generalize that the number of (5) people who because there's fewer smokers, (22) to to whether he was (17) a good have decided to smoke In this market your product to? employee or not. My perception of him country is a (6) smaller percent of the (23) A. i- you know, what I said was is not as an (18) incompetent person. population than it has been (7) It's a percent of (24) the population He's - you know, I don't know that (19) historicallv. who chooses to smoke - much, but I wouldn't say it's - my (8) Q. Right. (25) Q. Ri ht. general impression is (20) (9) A. That percent is going down. Page 560 incompetence. The percent of the (10) population (1) A. - has gone down. And - (21) MR. JANECEK: Q. Do you know that chooses to smoke is going (2) Q. What's the result of that? his title before he (22) left Reynolds? down. ; (3) A. It looks - (23) A. I think he was director of (11) Q. This document talks'about that (4) MS. BIXENSTINE: Objection, strategic research, I(24) think. concept, at least (12) to me, in the terms What do you mean? (5) What do you (25) Q. Would that have been a vice of industry volume? Is that consistent mean, what's the result of that? QresiQent, a senior (13) with what you were testifying to? (6) MR. JANECEK: Q. You can tell Page 562 (14) A. Well, let's see what they say. me. I'm - (1) vice president? Do you know? 1-t l£oks l:,ke (1c) that's what they're (7) W!tatVm-try.,n,g to find out i,s_ what (2) _A_. No. Director. I think it was saying here when they say she means. director of (3) strategic research. incidence. 1(16) suspect what that is (8) THE WITNESS: If you look at the (4) Q. So there's - he wouldn't have is percent of the population number of (9) smokers, this document, been an officer of (s) the company? smoking. I'm just reading this document. (10) It's (6) A. No. (17) Q. So what - what this appears to the one that's in front of me. It says (7) Q. What's a director do? be saying is that (18) fewer young number of (11) smokers. I'm assuming (8) A. Well, It depends upon what people or young adult smokers are it's in millions, although it doesn't (12) they're assigned to do. smoking, and (19) therefore the volume say so. 53 million, 49 million, 50.4 (9) Q. So he heads up a department? is shrinking or declining. Is that - million, 34.3 million, (13) 51.1 million. I (10) A. No. No. There are titles in a (20) A. No, that's not what this says. don't know, it bounces around some. company. You (11) know, there's, It just says (21) population 18 plus (14) MR. JANECEK: Q. This manager, senior manager, director, incidence, which I assume is the documents appears to mean (1S) that vice (12) president, senior vice percent ,::) of the population 18 plus there are fewer smokers available for president. I mean those titles are (13) who chooses to smoke. And they're you to'get them (16) to either switch or all through a company. The title (23) showing In 196S It was 42.6, and select your brand as the first usual (17) doesn't tell you what you (14) do. by 1984 it's 29.4. brand. (IS) Q. Right. I'm just trying to figure Page 557 to Page 562 (413) 392-0650 Tooker & Antz ,°51-414 0~*SA 11
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..6.... ...~.v. information from your science people that leads you to (14) believe that nicotine has an effect on the neurochemistry of (1S) the brain in the same course and pattern as a psychotropic (16) addictive drug does? (17) I'm not talking about outward behavior and (18) behavioral effects now. I'm talking about what happens in (19) the brain. Do you have any knowledge of that? (20) A. I don't know. I really - (:1) Q. Have you ever looked at it or study - (22) MS. BIXENSTINE: You keep cutting her off. (23) MR. HOPPER: Listen. Don't get mad and yell at me (24) or we'll go outside and really have it out, counsel. Don't (25) act like that. Page 510 (I) MS. BIXENSTINE: Are you going to beat me up? (2) MR. HOPPER: No, I'm not going to beat you up. Of (3) course, I'm not. But don't slam your fist down on the table (4) at me. (5) MS. BIXENSTINE: You keep cutting her off. I(6) would ask - (7) MR. HOPPER: I am not cutting her off. (8) MS. BIXENSTINE: Yes, you are. (9) MR. HOPPER: Well, I am not. (10) MS. BIXENSTINE: I think the record - (i t ) MR. HOPPER: If you will just settle down we'll (i:) finish the deposition. ((3) MS. BIXENSTINE: I am not going to let you (1s) contirue - t 15) MR. HOPPER: You don't allow me anything. You are (16) an advocate. The judge allows and rules. Thank you. %•ery (17) much. ( t 8) MS. BIXENSTINE: You keep. cutting me off and you (19) keep cutting the witness off. You've told her to wait until (20) you had finished your question before she answers, and I(21) expect you to accord her the same courtesy. (=2i MR. HOPPER: We'11 finish momentarily. And you (23) won't have to worry about what you think one thing is or (24) another. - (:5) MS. BrXENSTINE: I'm asking you' to extend her the Page 511 (1) courtesy - .) MR. HOPPER: I have. (3) MS. BIXENSTINE: - and the court reporter the (4) courtesy of not speaking over the witness. (5) MR. HOPPER: I hear you. (6) MS. BIXENSTINE: And the reason I got upset is (7) that you've done it repeatedly. (8) MR. HOPPER: Well, so have you. Tooker & Antz iK)YV.Yi avvs~~~ LyIID OeaSstey, You've cut me off (9) with your objections. You've cut your own witness off when (10) she's answered and you don't want her to say what you want (11) her to say. You've eoached the witness. You've testified (12) as counsel. So let's just end the deposition at this point (I3) and we'll settle our differences liter. Can you go back and (14) read my last question before this brabbling began. (15) MS. BIXENSTINE: I object to your statement that (16) I've been coaching the witness. I object to your statement (l7) that I've been cutting her off. (18) MR. HOPPER: That's fine. Your objection is so (19) noted. (20) (Testimony read as follows: (21) MR. HOPPER: Q. Question is this: From (22) a neurochemical standpoint, do you have any (23) knowledge or information from your science people (24) that leads you to believe that nicotine has an (25) effect on the neurochemistry of the brain in the Page 512 (1) same course and pattern as a psychotropic (2) addictive drug does? (3) I'm not talking about outward behavior (4) and behavioral effects now. I'm talking about (5) what happens in the brain. Do you have any (6) knowledge of that? (7) A. I don't know. I really -) (8) THE WITNESS: May I frnish my answer to that? (9) MR. HOPPER: Q. Sure. (10) A. Which was I don't know. I'm not familiar with the (11) terms you're using and I don't know what they mean. (12) MR. HOPPER: Q. Okay. (13) THE VIDEOGRAPHER: Counselor, forgive the (14) interruption. At this point we have to change the (15) videotape. (16) This marks the end of videotape number 6 in the (17) continuing deposition of Lynn Beasley. We're going off the (18) record. The time is 2:15 p.m. (19) (Brief recess in proceedings • 2:15 to 2:18 pm.) (20) THE VIDEOGRAPHER: We're back on the record at (21) 2:18 p.m. This marks the beginning of Videotape No. 7 of (22) the deposition of Lynn Beasley on May 30th. 1997, at 222 (23) Kearny Street, l0th Floor, San Francisco, California. The (24) video operator is Steve Leftwich with Barbagelata and (25) Associates. 63 Bovet Road, Suite 4)0. San Mateo, California. Page 513 (1) MR. HOPPER: Ms. Beasley, I have (413)391-0650 vot. Q - 5/30/97 X4AX;.31 no further (2) questions of you at this time. (3) Counsel. I've been instructed by co-counsel on the (4) Arch case that I need to reserve the right to recall the (5) witness based upon the fact that we've negotiated with (6) Mr. Belasic who has failed to produce certain documents up (7) to the time of this deposition. some 320.000 pages of (8) documents. At or near the inception of this deposition we (9) had just received those, and so I am going to enter on the (10) record the right - we reserve the right to recall her at (11) this point. Once those documents are examined I may need to (12) reexamine her further. At this point I don't know whether (13) that's the case or not. (14) MS. BIXENSTINE: I am not counsel personally in (13) the Arch case. I don't know about the document production in (16) that case. You will have to work that out with Mr. Belasic. (17) MR. HOPPER: And I knew you didn't know about it. (18) And I intended to mention something to you about that at the (19) beginning of my portion. but I had forgotten to do that. So (20) I have made my entry on the record, and that's where it (21) stands at this point. (22) Thank you, Ms. Beasley. (23) MS. BIXENSTINE: And the witness will exercise her (24) right to.read and sign this portion of the transcript, as (25) well. Page514 (1) MR. HOPPER: Sure. (2) THE VIDEOGRAPHER: This concludes the deposition (3) of Lynn Beasley. Three original videotapes were used - or (4) excuse me, seven original videotapes were used. (5) MR. JANECEK: Hold on. This is only in Arch. (6) MR. HOPPER: Yes. (7) THE VIDEOGRAPHER: For the purpose of Arch. Do you (8) want :o strike that? (9) MR. HOPPER: You got all that. didn't you, (10) Mr. Court Reporter? (11) THE REPORTER: Yes. (12) MR. HOPPER: Good. Thank you. (13) THE VIDEOGRAPHER: My apologies. Please continue. (14) MR. JANECEK: That's all right. (1S) MR. HOPPER: Only Arch has been adjourned. (16) While you're getting organized for a second, could (17) we take a real, real quick break? (18) MR. JANECEK: Sure. (19) THE VIDEOGRAPHER: We're off the record at 2:20 (20) p.m. (21) (Brief recess in proceedings • 2:20 to 2:27 pm.) Page 509 to Page 514 51714 2161
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sA atan tnt v. K,J. xe notds Tobacco L n Beasle , Vol, Q- S/30/97 article. report, (16) literature that ) your Opinion that peer pressure is the , n,.. A,e conc u es or suggesu that a ventstng rs: (t 7) fac(or or can be a factor in the decision to smoke? (t8) MR. L'ORANGE: That's compound. (19) THE WITNESS: Yes. Could you repeat the question? (20) MR. JANECEK: Can you read back the question? (:1) AIS. LAPORTE: You interrupted the witness' (22) answer. Did I hear you say yes? (23) THE WITNESS: No. I asked him to read back. (24) MS. LAPORTE: No. before that. It was previous. (25) before counsel stated an objection. Page 636 ~ ()) THE WITNESS: I didn't finish and I would like to (2) hear the question. (3) MR. JANECEK: Well, you said yes, and then you (4) asked me to repeat it. (5) THE WITNESS: No. I didn't finish answering. 1(6) would like to hear the question. (7) MS. LAPORTE: Could we hear her response, please, (8) also (9) (Testimony read as follows: (10) Q. Have you ever seen any study, article. (11) report, literature that concludes or suggests that (12) advertising is a factor or can be a factor in the (13) decision to smoke? (is) MR. L'ORANGE: That's compound. (15) THE WITNESS: Yes. Could you repeat the (16) question?) ,: 7) titR. 1ANECEK: Q. The question has been repeated. (18) He just read it. Is your answer still yes? (t9) SSS. BIXENSTINE: She said yes, can you repeat the (20) question. And I object that it's compound and vague. (: t) MR. JANECEK: Q. You can answer. (=: ) A. Again, I believe - and I'm not certain of this, (23) that in - there have been articles written where authors (24) suggest that advertising could be a factor. I don't think (25) they have provided any evidence that „ it is. They have Page 637 (1) suggested It could be. I have not seen any evidence that it (2) Is. (3) Q. So you have seen those articles. though? (4) A. I have seen that authors suggested that (5) advertising could be a factor in starting to smoke. I have (6) not seen any evidence that supports that. (7) Q. Based on your review of the evidence that you have (8) seen. is it number (9) one factor in the decision making process with respect to (10) smoking? (11) A. With respect to starting to smoke? (12) Q. Beginning to smoke. (13) A. Yes. (la) Q. Are you aware of any market research that was (15) conducted by Reynolds or conducted by third-party vendors of (t6) Reynolds into the underage market? (17) A. You have shown me documents today that bad IYFO 14 (t8) to 17 Incidence data on It. (19) Q. Other than what you saw today, were you aware that (20) there was market research done at R.J. Reynolds Tobacco (21) Company into the underage share of smoking? (22) A. Again, with the FTC investigation, I was aware of (23) it, too. Prior to all this stuff I bad not seen those (24) documents. I did not know that any third parties bad (25) provided data on those under the age of 18. Page 638 (1) Q. So it was only once - once the FTC originally (2) filed suit back in was it '92? '90 - (3) A. No, I did not know it back then. No, no, no. I(4) mean recently. (5) Q. The recent FTC investigation? (6) A. (Witness nods bead.) Yes. (7) Q. And you didn't know that the documents existed (8) even if you hadn't seen them before? (9) A. No. Again, as a result of this litigation and FTC (10) investigation I became aware that there - like the document (11) you sbowed me, that there was a tbird-party supplier called (12) NFO that provided data on smoking Incidence for 14 to 17. I(13) was not aware that data existed, I was not aware the company (14) had collected it and I had never seen it. (15) Q. Putting aside the documents, were you aware - (16) A. Let me correct that statement. The company did (17) not collect it. (18) I was not aware that there was an outside supplier (19) who provide that had data to Reynolds. (20) Q. Let me atk it this way: Were you aware of the (21) company called NFO? (22) A. Vaguely, yes. I mean I had heard NFO. (23) Q. You had heard NFO, but you didn't know they (24) provided underage smoking share data? (25) A. I - I believe it was - I don't know exac"I what . XMAX/4" (t) It was. I think the documents today showed incidence among (2) 14 to 17. (3) Q. But you had known - my question is you knew what (4) NFO was, but you didn't know they provided that type of (5) information? (6) A. I - I- what I thought NFO was, what I still (7) think it was after seeing these documents is It was the (8) supplier we used to track share of smoker prior to the (9) Tracker. (10) Q. So in your course of . employment at Reynolds, you ()1) would have access to NFO data? (12) A. No. I don't ever remember using NFO data -(13) data. 1 remember Tracker. (14) Q. When did Tracker come into existence? (15) A. You know, I don't know. But that's all I remember (16) is Tracker. (17) Q. Do you know if Tracker had been in place prior to (18) your first joining R.J. Reynolds Tobacco Company? i (19) A. I don't know when it started. But aQ I remember (20) is Tracker. (21) Q. And do you use infoimation from Tracker that (22) tracks the share of smoker throughout your - your job (23) responsibilities at Reynolds? (24) A. Do I use our current tracking system? Is that (25) w•hat you're asking? Page 640 (1) Q. Yes. (2) A. Yes, I use the data collected on our current share (3) of smoker system. (4) Q. And early on in the campaign when you you launched (5) the campaign. I guess you would have been tracking it after (6) it had been launched, did you but use Tracker at the early (7) stages of the Joe Camel advertising campaign? (8) A. What do you mean by use? (9) Q. Where you received data from Tracker on share of (10) smokers? (11) A. Yes. 1 (12) Q. And you'd - I don't know how marketers use (13) information, on share of smokers, but you do what marketers (14) do with share of smoker information? (15) A. There's really nothing you can do with It. It's (16) like knowing your share of market. That's all it tells (17) you. It tells you how you're performing. It doesn't give (18) you any indication of what to do or how to do it or anything (19) like that. It's like knowing your share of market. You (20) know how the brand is Tooker & Antz (413)`S92-0650 Page 635 to Page 640 51714 2173
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a Uu.cc0 a.yua oauIcY , • Ol. U• J/JU/Y / Y4AX <3, description that a Reynolds person - (t) MR. JANECEK: Q. On what do before your (20) deposition today how (t0) that a Reynolds employee told Mrs. you base your opinion (2) that he was long did you speak with counsel? Beasley of what kind of (1)) an crazy or he was speculating? (21) MS. BIXENSTINE: Objeetion. In employee Mr. Teague was. That's not (3) A. I didn't say - preparationior (:) the deposition? legal advice. (4) MS. BIXENSTINE: Objection. (23) MR. JANECEK: Q. In preparation (12) MS. BIXENSTINE: Well, it sounds Asked and answered. for the (24) deposition. like it was in (13) the context of the FTC (5) THE WITNESS: I didn't say he was (25) A. For this deposition? investigation, so it would be covered crazy. I said - Page 660 (14) by work product. (6) MR. JANECEK: Q. The document. (1) Q. For this deposition. (15) MR. JANECEK: I don't care if it (7) A. - this stuff, the stuff in here (2) A. I don't know. Maybe it was a was on the way to (16) court. If the seems crazy to (8) me. small part of one (3) day and then topic of the discussion was Joe Blow (9) Q. So tell me what documents that part of another day• was a (t7) bad employee or Joe Blow would lead you to (10) your opinion that (4) Q. What's a small part of one day? was a good employee, is it has (18) this is speculation and crazy. (5) A. I don't know. It could have nothing to do with legal advice. (1 t) MS. BIXENSTINE: Objection. been a couple hours. ()9) MS. BIXENSTINE: It has to do with Asked and answered. (6) Q. It could have been, or it was a the documents (20) authored by Mr. (12) THE WITNESS: I told you, you couple of hours? Teague, that were the subject of the (21) know, I've seen a (13) lot of documents. (7) A. Well, I think - that's my investigation, so it's clearly work (14) MR. JANECEK: Q. You can't estimate. About a (8) couple of hours product. identify any (15) documents? one day. (22) MR. JANECEK: I'm not talking (16) MS. BIXENSTINE: Objection. (9) Q. And when was that? about documents. (23) I'm tallking Asked and answered. (10) A. You know, I don't know. about a description of Mr. Teague (17) THE WITNESS: I told you, I've Maybe in the last three (11) weeks. himself. (24) ' MS. BIXENSTINE: It seen a lot of (1g) documents and I can't (12) Q. Sometime in the last three was in the context - based on (25) the speak to one specifically. weeks? witness' testimony, it was in the context (19) MR. JANECEK: Q. And you spoke (13) A. Right. of preparing to people about (20) Mr. Teague? (14) Q. And then you said you spoke Page 657 (21) A. I spoke to - I spoke to Guy with your counsel a (ts) couple hours (1) for the investigation. So I instruct Blynn about (22) Mr. Teague relative on another day? I her not to answer. to the FTC investigation. And they (16) A. Yes. A part of another day. (2) MR. JANECEK: Q. How have you had (23) picked out Teague (17) Q. And how - how much of the part concluded that (3) Mr. Teague's documents. And we discussed the of the other day (le) did you, conclusions were speculation? response (24) to those Teague (19) A. You know, It was, I don't (4) A. He says so in many of his documents. know, maybe - maybe (20) three or documents. (25) Q. Who told you that Mr. Teague four hours. (5) Q. He says it's speculation? Can was speculating? (21) Q. And when was that? you show me? Page 659 (22) A. It was within the last two (6) A. In this one it doesn't, but I've (1) A. I told you - weeks. read a document ;7) of his that says (2) MS. BIXENSTINE: Objection. (23) Q. And then when did you arrive in that. (3) THE WITNESS: I told you, no one San Francisco? (8) Plus, I mean just reading this told me that. (24) A. Wednesday night. stuff you can tell (9) it's pretty (4) I believe I read it in one of his (25) Q. Wednesday night? And did you bizarre. documents. At (S) least one. I don't meet with counsel (10) Q. I can't tell it's pretty bizarre. It know. I mean if I read this whole (6) Page 661 makes sense (11) to me. thing, it might be in here, too. I don't (1) again Wednesday night? ():) A. It doesn't to me. know. (2) A. I met with Joe Escher and (13) Q. So your conclusion that this (7) MR. JANECEK: Q. Do you know if Pam, and Kim joined us (3) brief)y. document is mere (14) speculacion is it was (8) Mr. Teague's position at the (4) Q. And how long was that based on having reviewed a Teague company to design cigarettes? meeting? document. (t3) one Teague document (9) A. You asked me that before, (5) A. I don't know. Maybe a couple at some point in time that mentioned he and I told you I - I(10) don't know hours. (16) was speculating? what bis position was. (6) Q. Now, other than the outside (i7) MS. BLXENSTINE: Objection. (11) Q. Do you know if his position at counsel you were just (7) talking about. Mischaracterizes the (t8) witness' " the company was to (12) strategize as did you spend any time with any testimony. to future trends in the industry? in•house (8) counsel, general counsel. ((9) THE WITNESS: You know. I don't (13) A. I don't know what his position Mr. Blynn, at Reynolds in (9) know, really. (20) I've seen quite a few was. preparation for your deposttion'' documents. I can't tell you which one (14) Q. So he - this may well be not (10) A. No. (2 () said what. speculation: this (15) may be legitimate (11) Q. You didn't discuss your (22) But my impression of these research for all you know? deposition with Mr. Blynn (12) or ' Teague documents is (23) that they're (16) MS. BIXENSTINE: rbjection. anyone else there? rea:!y very crazy, and I believe I've read (17) THE WITNESS: I have not seen (13) A. You know, I can't reall.•• in, (24) 1 don't know how many. I can't anything in any of (18) his documents remember. I - I may (14) ha% e told say, but I believe it was - (23)1've read that suggest there was any research him, "I'm going to California to do that he was speculating. done. the (15) deposition." I don't consider Page 658 (19) MR. JANECEK: Q. Ms. Beasley, that discussing the (t6) deposition. Tooker & Antz (4134 392-0650 Page 656 to Page 661 51714 2175
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aA Mangini v. R.J. Re nolds Tobacco (17) most - he defines conformance as peer - close friend or (18) peer influence. Probably the most present reason that a (19) young person starts to smoke is the influence of close (20) friend or peer. That is consistent with the outside (2l ) Research I have seen. (22) Then he also says although a youth is most likely (23) to smoke if his parents smoke. I have also seen that (24) there's a family influence. (25) Q. Mrs. Beasiey, isn't it true that the creation of Page 678 (1) peer influence is an effective use of marketing? (2) A. I don't know what you mean by that. (3) Q. Marketing - you don't use marketing to create (4) peer influence? (5) A. I don't know what you mean by that. (6) Q. Marketing can't be used to create peer influence? (7) A. Peer - If you're talking about peer group (8) influence in - I mean you have to be more specific, really. (9) Q. Do you know what peer influence is? (10) A. Yes. (11) Q. And isn't peer influence a tool that's used by (12) marketers? (13) A. A tool that's use - peer influence, a tool that's (14) used by marketers? I don't know what you mean. ()S) Q. Well, let's take the Joe Camel campaign. Isn't (16) one of the things, one of the goals or challenges to the (17) advertising and marketing of Camel cigarettes, isn't that to (18) create peer pressure as it comes to smoking Camel (t9) cigarettes? (=0) A. No, I think you're misinterpreting it. What it is (21) is if an 18 to 24 adult smoker picks Camel, then other (22) people who see that person smoking Camel may decide that (23) they want to switch to that brand also. That's peer (24) influence. "I smoke what my friend smokes. I choose the (25) brand my „ friend chooses." Page 679 (1) Q. So you are using peer influence to motivate the (2) target audience to use your product? (3) A. No. That's not what I said. (4) I said the advertising provides information, brand (5) information, image and product information that is (6) meaningful or relevant to an adult smoker. t7) Now, once that adult smoker, say, chooses Camel, (8) then other Lynn Beasley, Vol. II . S/30/97 people who see that person smoking Camel may be (9) influenced by the fact that that person chose Camel. That's (10) peer influence. (11) Q. And that's not created by advertising? (12) A. No. That's not created - we11, obviously, you (13) created that you - you affected that individual who decided (14) to switch to Camel. Advertising played a role in that. (aS) But then the fact that other people see this (16) person smoking Camel and that influences to choose Camel, (17) that's not advertising. (18) Q. Do you think advertising can be used to direct (l9) peer influence? (20) A. I don't know. I don't know exactly how I would do (21) that. (22) Q. You don't know if it could be done? Or you don't (23) think it could be done? (24) A. I don't know. I mean, you know, I would have (2S) to - I don't know. It doesn't occur to me how zou would do Page 680 (1) that. (2) Q. Now, you know - (3) MS. BIXENSTINE: Frank, we've been going for 10 (4) hours, and I think we should - (5) MR. JANECEK: Well, I think we need to finish, if (6) I can get 10 minutes. I'm on one last documenr, so (7) THE WITNESS: Is that the last document of all? (8) So - (9) MR. JANECEK: Not of all. But just to finish this (10) topic. (11) THE WITNESS: Because if it was the last document (12) of all, then we wouldn't need to meet again. (13) MR.IANECEK: You would stay later. (14) Q. Mr. David tauco, you testified that you know who (15) David lauco is, right? (16) A. Yes. (17) Q. He was your boss? (18) A. Yes. (19) Q. During the Camel - when you were originally (20) creating the Camel campaign? (21) A. That's correct. (22) Q. And whai about Mr. lauco? you think he's (23) competent individual? (24) A. Yes. (25) Q. Is he a smart man? Page 681 (1) A. Yes. (2) Q. A good advertiser? Do (3) A. I don't know what you mean by a good advertiser. (4) Q. A good marketer. He can Tooker & Antz (415 92•0650 XMAXl7n promote a brand well? (5) A. I think he's a good marketer. (6) Q. Ms. Beasley. I'll have you look at a document (7) which I'll have the court reporter mark as Platntiffs No. (8) 32or- (9) THE REPORTER: 33., (10) MR. JANECEK: 33? It took• me a while, but I(11) finally screwed up, hmm? (12) (Exhibit 33 marked.) (13) THE WITNESS: Is this the same one we looked at (14) last time? (15) MR. JANECEK: Q. I think it is. Or a different (16) version. because they had a stamp on the right-hand corner (17) that we don't have. (18) A. Okay. All right. (19) Q. You've seen that document before? At least today? (20) A. Right. I saw this today. A similar one, I guess (21) you said. (22) Q. Yeah. I think the only difference is they had an (23) exhibit stamp in the tight-hand corner. (24) A. Oh, okay. (25) Q. And I don't remember if you said you'd seen this Page 682 l ' (1) document before today? ; (2) A. No. (3) Q. Not with the FTC? ~ (4) A. No. (5) Q. I want to draw your attention to item number 2. (6) Do you see that? (7) A. Yes. (8) Q. Actually, before we get there. what's the title of (9) this document' (10) A. Camel New Advertising Campaign Development. (11) Q. And it's dated what date^ (12) A. March 12th, 1986. (13) Q. So that's a couple of years before the Camel (14) advertising campaign, the Joe Camel advertising campaign? (15) A. Right. (16) Q. When did that focus group occur where you (17) mentioned that the positive reaction happened with the (18) French poster that was in the group? (19) A. In July of 1987. (20) Q. So that was July of 1987? (21) A, Yes. (22) Q. You guys acted pretty quickly to get that campaign (23) going in six months, hmm? (24) A. Thank you. (25) Q. Could you look at ttem number 2.there? (1) Page 683 A. Yes. (2) Q. Do you remember rca.':n; that earlier today or do (3) you ncei :hc time to look at it' Page 677 to Pat;e 683 51714 2177
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BSA Mangini v. R.J. Reynolds Tobacco Lynn Beasley, Vol. R- S/30/97 XMAX(M) the designation? (24) MDD - (25) A. Oh, I see what you're saying. Page 568 (1) Q. Doesn't that mean that it was - (2) A. I don't know. I don't know what their coding (3) system was. (4) Q. Again, more for familiarizing yourself to make (5) sure that you have or haven't seen this. (6) A. Okay. I just need a minute. (7) 1 don't remember seeing this. (8) Q. You don't think you've seen this before? • (9) A. (Witness shakes head.) ( lo) Q. Mrs. Beasley, on the title of this document, it (11) has a list of copies to individuals. And I'm not going to (12) go through the names again, but at the very bottom it says (13) MDIC - Final Report. What is that? (14) A. I'm not really sure. I don't know. (15) Q. You've never heard of the MDIC (16) A. I don't know. It sounds vaguely familiar. But (17) MDIC, I don't know what it stands for. (18) Q. I will ask you, however, who is R.J. Harden? (19) A. You know, I don't know. (20) Q. You never heard of that individual? (21) A. Just doesn't - it seems like somebody in (22) marketing research is Harden, but I can't remember. (23) Q. What about the people that Mr. Harden sent this (24) to, Mr. T.B. Owen and D.F. Pearson? (25) A. Dan Pearson, I told you I recognized his name from Page 569 (1) the last document. I don't know about the T.B. Owen. Q) Q. That's another one that's unfamiliar to vou? (3) A. I just don't recall T.B. Owen. 14) Q. I want you to turn to the first pace. which is the (5) management summary. 6) A. Yes. r' ,, Q. If you look under the background. (s) A.l'es. ,9) Q. Can you read what this document, just the first (10) paragraph says. Starting with first usual brand. (11) A. You want me to read it out loud? (12) Q. Yes. (13) A. First usual brand younger adult smokers, FLBYAS, (14) are a key group in the cigarette market. This group (15) represents a source of uncommitted smokers - (16) Q. Among which (17) A. - among which RJ? I don't know - which RJ has (1a) underdeveloped, particularly relative to Philip Morris. (19) Q. We've seen a couple documents in this time frame, (20) '85, '86, just a couple of years preceding the Joe Camel (21) campaign that talk about FUBYAS being a key group or (22) critical or - FUBYAS was important at that time, wasn't it? (23) A. It's younger adult smokers that was important. (24) Q. But FUBYAS, everyone seems to be writin about (25) FUBYAS. Page 570 (1) A. Yeah, they're using them synon - (2) MS. BIXENSTINE: Objection to everyone. To the (3) characterization of everyone. (4) THE WITNESS: There are some documents that refer (5) to FUBYAS. Even in this document, if you look at it, if you (6) look at who this research was done among, it's 18 to 20 year (7) old adult smokers. (8) There was no screening for first - we didn't do (9) that. There's no such thing as screening for first usual (10) brand young adult smokers. It was done among young adult (11) smokers. (12) MR. JANECEK: Q. But I thought young adult (13) smokers, I thought you told me young adult smokers were at (14) that point in time 18 to 24. (15) A. It's obvious - I told you my definition. 18 to (16) 24 young adult smokers. (17) It appears in some of these documents that It's (18) inconsistent. Sometimes they defined it as 18 to 20. (19) Sometimes they define It as 18to24. (20) Q. Do you know if Reynolds has a definition of (21) FUBYAS? (22) You say it's your definition. I'm just trying (23) to - (24) A. I don't believe there's a Reynolds definition of (25) FUBYAS. I believe it was a term used at the time to be Page 571 (1) synonymous with younger adult smokers. And some people (2) obviously used it to refer to 18 to 20 year old adult (3) stltokers, and some people used it to refer to 18 to 24 adult (4) smokers. (S) Q. So when you say it's your definition, what you (6) mean to say is it's your understanding of the way you (7) understand and use the terms FUBYAS and YAS, they're (8) interrelated; it's the same thing? (9) A. Right. Younger adult smoker. Right. Page 567 to Page 573 (415) 392-0650 (10) MR. JANECEK: Mrs. Beasley, I will hand you a(11) document which I'll have the court reporter mark as (12) Plaintiffs Exhibit 24. (13) (Exhibit 24 marked.) (14) MR. JANECEK: Q. Ms. Beasley. I'm going to ask (IS) you just a couple general questions on this. so if you have (16) seen it, that's all I'm looking for. (17) A. No. (18) Q. You haven't seen it? If you look at items 2 and (t9) 3, do you see on the first page there? (20) A. Yes. (21) Q. The document discusses research or a research (22) program to better understand the black market. And then 3 (23) is the Hispanic market. (24) Prior to 1985 do you know if Reynolds was (25) concentrating its efforts on the black market or the Page 572 (1) Hispanic market? (2) MS. BIXENSTINE: Objection. At ' all times prior? (3) MR. JANECEK: Prior to. (4) MS. BIXENSTINE: From the period she joined the (5) company? (6) MR. JANECEK: As much as she knows. (7) THE WITNESS: I don't know what you mean by - (8) did you say primary emphasis? Or what did you say? (9) MR. JANECEK: Q. No, I- it's just focused. (10) Was there an interest in, were there campaigns directed to, (11) was Reynolds doing something to look at the Hispanic or (12) black markets? (13) A. Prior to 1985? 1 don't know. Could have been. I(14) don't remember. It seems to me that Winston had Hispanic (15) advertising to adult smokers. I mean - but I don't know. (16) 1 don't know if - I can't remember. (17) Q. Do you know if in the mid '80s - you would have (18) been employed after - or during 1985. (19) A. Right. I was. (20) Q. Was there - did Reynolds make a conscious effort (21) to investigate and look into the Hispanic and black markets? (22) A. You know, in 19 - I don't remember that in 1985. (23) It's possible they did research. This is a document just (24) sort of proposing research. I don't remember really (25) remember if they did it in 198S or not. Page 573 (1) Q. You think it's - they didn't do it by that time? (2) A. I don't know. (3) Q. I mean at some point in time Tooker & Antz 51-4atA al6top, d
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11SA &•.,.arsa, V. ac.s. eceynotas i ooacco Lynn tseasiey, VoI Q- S/30/97 xMA,as, 1 study (20) done by Reynolds, and I haven't read this whole document, 1,11) but I suspect 1t's true with t61s one, too. (:2) I haven't read what be says at the beginning of (23) It, but - this discussion - let's see, let me read it. t:4) I think this is just him speculating. I don't see (25) anything that says any research was done by Re.•nolds here. -_ Page 646 ( t) Q. And you mentioned the date earlier, remember? (2) What was that. 1968? (3) A. 1968 Is what It said. (4) Q. And 1 think you - I think you identified the 1973 ($) document we looked at a while ago as speculation, as well. (6) Do you remember that document? I don't want to go back into (7) it, but do you remember which one I'm talking about? (8) A. A Claude Teague document? (9) Q. A Claude Teague document. (10) A. I think so. (1 t) MR. JANECEK: And Mrs. Beasley, I'll hand you a (12) document which I'll have the court reporter mark a's (13) Plaintiff's Exhibit 31. (14) (Exhibit 31 marked.) (15) THE WITNESS: Do you want me to take a look at it? : 16) MR. JANECEK: Q. Just to satisfy yourself that (17) you have or haven't seen this. -:8i A. I think this is one of the FTC documents. It (191 looks like it. If it's not the one, it.+as one similar. ~=0) Q. And we also looked at one that W as stmilar, it was (21) 1973. 22) A. Okay, so - Claude Teague, 1972. i :3 , Q. Do you think you've seen this one? a, A. I do. I think I saw it in tbe FTC thing. Or one (:5) close to It. Page 647 Q. Are you generally familiar with it: ' Or do you (2) need to take a look at it to confirm that you had seen it? ;:) A. I think - I think it's the oae I saw in the FTC (4)*thing. „ 5) Q. If you can turn to the page on the righ(-hand side (6) that's 535. Are y ou there? (') A. Just one second. S3S? 1) Q. 35. Yes. (9) A. Yes. I've got it. (10) Q. Okay. The second full paragraph. Do you see t 11) that? 11:) A. Yes. (13) Q. Are you familiar with the paragraph? Or you need (14) to read that paragraph? - 15) A. I need to read it if you're going to ask me about (t6) it. Do you speculations on his (7) part. I don't want me to read It through the believe there's any research second page, too? supporting it or (8) any studies (17) Q. Yeah, you might want to read conducted or anything. It's just his that paragraph. opinion on (9) this stuff. . He's not - (18) A. I've read it. he wasn't in marketing. I never (10) (19) Q. Do you see in the first sentence read any of these documents, and, of that (20) paragraph - why don't you you know, until the -(1 t) recently read the first sentence of the (21) here with this litigation. paragraph to the colon. Do you see the (12) Q. You might want to read the next colon after the - paragraph, unless (13) you're familiar (22) A. Are you saying out loud? with Mr. Teague's conclusions as to (23) Q. Yes. Read that. Read that out how you (14) should attract a; loud for us. non-smoker to smoke. ' (24) A. Before proceeding too far in (1S) A. What page are you on? the direction of (25) desitn of dosage (16) Q. I'm on the next page: It's 536 forms for nicotine, it may well - down the side. excuse (17) The next paragraph. the very next Page 648 paragraph. (1) me - it may be well to consider (I8) A. This whole paragraph? another aspect of our (2) business; (19) Q. Yes, if you're familiar with that that 1s, the factors which Induce a paragraph, then (20) we can discuss it if presmoker or (3) non-smoker you want. become a habituated smoker. (21) A. I'm not familiar with it enough (4) Do you want me to keep to answer (22) questions on it. reading? (23) I've read it. (S) Q. No that's all I wanted. We want (24) Q. Okay. And do you see that Mr. to talk about (6) that sentence. It Teague has some (25) opinions as to appears from this sentence to me that how to attract the non-smoker or (7) Mr. Teague's charge, if you will, was presmoker? the design of a(8) cigarene, a youth Page 650 cigarette. (1) A. Yes. ' (9) MS. BIXENSTINE: Objection to (2) Q. Do you see that Mr. Teague has the (10) eharacterization. concluded that to (3) attract the (I1) THE WITNESS: Look• this is-- I non-smoker or presmoker you must believe this is (121 like many of the other convince him (4) with wholly irrational Teague documents. It's just this guy reasons that he should try smoking in (13) speculating on what he thinks (S) the hope that he will for himself then should be done. discover the real (6) satisfactions (14) There's no indication here that he's attainable? doing (1S) anything. He's speculating (7) A. Yes, I think It sounds like on what he thinks. complete nonsense. (16) MR. JANECEK: Q. Did you - when (8) Q. You don't agree that you need you just read (17) the paragraph, did to sell the product (9) not on rational you notice that Mr. Teague concludes reasons, as, you know, it's a longer (10) or (18) appears to conclude that the product or some product character? physical effects of cigarette (19) are not (11) A. No, this whole thing sounds what drive a presmoker or non-smoker like complete nonsense (12) to me, to smoke? that's all. (20) A. Yeah, I see he says that. (13) Q. What would you do if one of (21) Q. And do you see what he does your employees had (14) written 3 conclude goes into (22) the - a memo like this talking about how to non-smoker's decision to smoke? attract (lS) underage smokers? (23) A. I see what he says here. (16) MS. BIXENSTINE: Objection. If (24) Q. Can you read for me the she knew about it? sentence that starts with (25) 'rather.' (17) MR. JANECEK: If she knew about ' Page 649 it. If she found (18) out. (1) A. "Rather, he appears to start to (19) THE WITNESS: I would sit down smoke for purely (2) psychological with the person. 1(20) can't imagine reasons - to emulate a valued image, that would happen. People who work to (3) conform, to experiment, to with me (21) understand our company defy, to be daring, to have (4) policy. I understand it. It's adult (2:) something to do with his hands, and smokers. It's very, very clear. the like." (5) It's - you know, again, I (23) But hypothetica!ly - read a number of these (6) Teague (24) MR. JANECEK: Q. Hypotheti:alfy. documents. And they're just (25) A. If somebody wrote a Tooker & Antz (415)-492-0650 Page 645 to Page 650 51714 2174
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asA a.arua~a~ v, K.J. KeynotCa (3) Q. Never heard that teenagers rebell agains (4) authority? (3) A. No, J didn't say that. You asked me lt I'd had (6) dtscussions with friends who had teenagers who talked to me (7) about rebelling against authority, and I haven't had those (8) discussions. (9) Q. Weli, actually, I did ask you that, and I was (10) following up to see different situations where you might (11) have had that, heard about that. (12) MS. BIXENSTINE: What's the question? (13) MR. JANECEK: Q. I think you told me you didn't (14) know about the rebellious teens or hadn't - (tS) A. No, I said - (16) MS. BIXENSTINE: Wait, Wait. Objection. Your (17) question is not a question. It's a statement. You're (18) trying to mischaracterizes Ms. Beasley's testimony. I(19) object. Ask a question. (20) MR. JANECEK: Q. So you have some information on (21) whether teens can be perceived as rebellious? (22) A. I didn't say I had some information. You asked me (23) if - had I ever heard or rebellious teens or teenagers (24) described as rebellious. I said sure. I've heard that. (25) Q. And do you generally agree or disagree with that? .. Page 668 (1) A. I don't - (2) MS. BIXENSTINE: Objection. Objection. 0) THE WITNESS: I don't know. You know. some '(41 teenagers are rebellious, some aren't. (s) MR. JANECEK: Q. Now, if you can turn to page (6) 293. Have you got that? (7) A. I'm there. i8i Q. Do you see the section entitled Initial Reasons (9) For Smoking? 10) A. Yes, I do. ~ 11) Q. Do you see what the three - well. four things (12) that were identified as an initial reason for smoking? ,13 i A. Yes, I see those. (14) Q. It's confot'mance, support? t 15) A. En joyment, to show off. 116) Q. po you have any - based on your experience as a (17) cigarette marketer and speaking with I would imagine (t8) thousands of people that smoke cigarettes. How many people (191 have you - 20) A. Oh, sure, thousands, yes. (: I) Q. Based on that broad experience, then, can you tell (22) me if you agree or disagree as to some of the factors that (23) can go into why someone begins to smoke? Tooker & Antz s ooacco Lynn Beasley, Vol, Q- 5/30/97 (24) MS. BDCENSTIINE: Objection. Her experience is not (25) been as she's testiCed why people begin to The smoke. Page 669 (1) experience that you just talked about (2) MR. JANECEK; Do you have an objection or are you (3) going to just testify? (4) MS. BIXENSTIIdE: I object to the predicate in your (S) question. (6) MR. JANECEK: Thank you. (7) MS. BIXENSTINE: And then saying based on your (8) experience, talking to thousands of people - (9) MR. JANECEK: Who smoke. (10) MS. BIXENSTINE: - who smoke; what are the (I1) reasons for starting to smoke was the follow - the second (12) part of your question. I object to the question and the lt3) predicate. (14) MR. JANECEK: Q. So did you yet your counsel's (1!) direction on that one? (16) MS. BIXENSTINE: Move to strike. (17) MR. JANECEK: Q. You can answer the question. (18) A. Which question? Or do you want to re-ask? (19) Q. The question about based on your experience, do (20) you have any feelings as to whether what Mr. Tredennick has (21) identified as the initial reasons for smoking are correct or (22) incorrect? (23) A. Based - (24) MS. BIXENSTINE: It says essential reasons, not (25) initial reasons. Page 670 (I) THE WITNESS: Based on my experiencing - (2) experience marketing to adult smokers. I don't know if these (3) are correct or incorrect. (4) 'Again, as I told you earlier in the deposition. I(S) have read outside literature that says - that talks about (6) the reasons why people start smoking. Peer influence, (7) family influence. Remember, we went through those. (8) That - so I don't know, these don't sound exactly (9) like that. So based on that, these may not be right. I(l0) don't know. (t1) MR. JANECEK: Q. You don't know? Having (12) interviewed thousands of smokers, has the topic ever come up (13) that you're aware of as to why someone would begin to smoke? (14) A. No. (15) Q. No one's ever spontaneously discussed in any focus (16) group that you're aware of, 'Oh. I started smoking (41 SF 392-0650 rrAx13n because (17) my neighbor did.' or given a reason for why they begin to (18) smoke? (19) A. I'm thinking about can I ever remember anybody (2t)) bringing that up. I don't know, I - I don't recall it. (:1) Q. They may have? You just can't recall it? (22) A. I don't know. I - I don't recall it. I don't (23) recall anybody bringing it up. • (24) Q. It could have happened? You just don't remember? (25) A. It could have happened. I don't recall it. Page 671 (1) Q. Now, do the people that R.J. Reynolds Tobacco (21 Company generally employ, are they relatively competent? (3) MS. BIXENSTINE: Objection. Of the tens of (4) thousands of people that Reynolds has employed over the (5) years? i (6) MR. JANECEK: No. Let's limit it to the marketing (7) department (8) MS. BIXENSTINE: Objection. (9) THE WITNESS: Are - you know, people I know, I(.10) can speak to that. okay? The people I know, most of them I(I 1) believe are competent employees. (12) MR. JANECEK: Q. So then you would have no reason (13) to believe that Mr. Tredennick was not a competent employee? (14) A. I don't - ( I S) MS. BIXENSTINE: Objection. It was 1974 when (16) Ms. Beasley was in high school. (17) THE WITNESS: I don't have any idea. (18) MR. JANECEK: Q. But you don't suspect or you (19) haven't heard that Mr. Tredenaick was incompetent in his (20) job? (21) A. I haven't talked to anybody about Mr. Tredennick, (22) so 1 don't have any idea. (23) Q. Now, you said Mr. Teague's statements in the last (24) document were - were crazy or speculation. right? (25) A. Um-htnm. Page 672 (1) Q. Did you notice - (2) A. Yes. (3) Q. Did you notice that a lot of the factors that (4) Mr. Teague identified were also identified by Mr. Tredennick (5) a couple of years later? (6) MS. BIXENSTINE: Objection. (7) THE WITNESS: I don't - I don't recall exactly (8) what he tdentified. But I do see in this document that it (9) says: Much of our information is drawn from secondary (10) sources, and we have - we have to hypothesize to a - Page 667 to Page 672 51714 2176
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l VVnC/' CY A /l[Z Errata Sheet Witness: Lynn Beasley, Volume II -- Confidential Case: Mangini vs R.J. Reynolds Tobacco C:'umpany Arch vs The American Tobacco Company Date: May 30, 1997 Note: If you are adding or deleting from your testimony, please print the exact words you wish to add or delete. Specify each change with "add" or "delete" and sign this sheet. Page Line 368 10 "luh chinq" should read "launchiny" i Witness's Signature: Date: . ~
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Errata Sheet Witness: Lynn Beasley, Volume 1! Case: Mangini vs R.J. Rewnolch Tobacco C'umpanv Arch vs The American Tobacco t'umRany Date: May 30, 1997 Note: If you are adding or deleting from your testimony, please print the exact words you wish to add or delete. Specify each change with. "add" or "delete" and sign this sheet. Page Line 456 13 519 9 522 4 527 6 528 25 543 13 548 20 555 5 556 17 598 1-2 605 11 616 9 623 19 638 19 667 23 677 16 insert "MR HOPPER:" before "vou vou haven't " "hori2onfully" should be "horizontally" "It" should be "They" "Joan" should be "Just" "and" should be "then" -r-- delete "certainly not -" "though" should be "know" "pages" should be "ages" "the" should be "at" "eliminate. Them" should read "eliminate them" add "-85" after "8" delete "of the" and add a period after "wasn't." Capitalize "That" add "Not" before "That" "Provide that had" should be "provided that" "or" should be "of" "present" should be "prevalent" Witness's Signature: Date: . ~
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a:A MingtOt Y, x..1. sceyaotas Tobacco Lyn_n_Beasley,vol, (:5) A. I didn't follow you. Type of information what? Page 584 (1) Q. Would there be a summary plan and a detailed plan? (2) A. Sometimes. Sometimes not. (3) Q. So sometimes the brand would not write down the (4) details of a particular plan, so there would be no record of (5) the detail? (6) A. We - I don't know. I mean, again, sometimes the (7) plan format included a lot of detail, sometimes it didn't. (8) Q. Well, that's what I'm saying. Notwithstanding the (9) format, whether it's one document, two documents or 75 (10) documents. was the type of information generally the same? (11) A summary overview and then the detail? (12) A. Not necessarily. (13) Q. So some plans may not have summaries? (14) MS. BIXENSTINE: Objection. (15) THE WITNESS: I think most plans would have a (16) summary. How much detail is in a plan would vary greatly. (17) MR. JANECEK: Q. So some plans wouldn't have (181 detail? (19) A. The amount of detail would vary greatly. (-0) Q. Can you - (21) A. Detail's a relative term. (::) Q. Can you explain for me what you mean by detail. (23) the amount of detail? (:4) '%SS. BIXENSTINE: Objection. (25) MR. JANECEK: Q. What would be - A h% don't you Page 585 r l, go ahead and finish your objection. I'm curious to see. (2) since I didn't finish my question. r31 MS. BIXENSTINE: You paused. thought you were (4) done. I am sorry. It's going to be compound, but it was +5i vague in the first part of the question. (d) MR. JANECEK: Canyou read ba:k the first part of (7) the question? rE, ~Question read as follows: ~9) Q. Can you explain for me what ).ou mein by (10) detail, the amount of deta,l^) r 11 iMR. JANECEK: Q. The minimum amount of detail? c 1.) A. what do you mean, the minimum amount of detail? (13) Q. Is there a basic amount of detail that every plan (14) must have for it to be of use to anyone? (15) A. No. Again, you know, it just depends. It depends (16) on the format that was used, who the plan was being prepared (17) for. (18) Q. When you were in charge of Tooker & Antz I Camel, when you created (19) the Joe Camel campaign. did you create promotional plans (20) similar to these? (211 A. You mean similar in format? (:2) Q. Similar in format. A Promotional plan. (:3) A. I'm sure we had a promotional plan, yes. (24) Q. But you don't recall specifically whether you did (25) or not? You're just sure that you must have done one? Page $86 -~- ()) A. Oh, we definitely bad a promotion plan. (2) Q. So you recall doing promotional plans? (3) A. Definitely, yes. (4) Q. Okay. When you did promotional plans in 1987 for (5) the launch of the Joe Camel campaign, how much detail did (6) you put behind them? (7) A. Now, that I don't remember. (8) Q. You don't remember if it was a lot of detail or a (9) fair amount of detail? (10) A. I don't remember. I don't remember. (11) Q. Would a plan such as these, whether it's a (12) promotional plan or a media plan, would those be done yearly? (13) A. We do plans on an annual basis. Remember (14) yesterday I described to you our planning , process. We do an (15) annual plan. (16) Q. So this would be part of an annual plan? (17) A. No, I don't know If this presentation was or not. (18) 1 can't tell. (19) Q. So this look likes a presentation and not so much (20) a plan? (21) A. It sort of looks like that to me because there's (:2) presentation type here. (23) Now, that doesn't mean a plan can't be presented (24) iA presentation type. But the title on this document says (25) promotion agenda. It doesn't say 1991 brand plan. Page 587 (1) Q. So that's how it would be identified, would be a (2) 1991 brand plan? (3) A. Or Camel brand plan or normally it would have some (4) title like that. (5) Q. And that type of plan, a 1991 brand plan or (6) particularly Camel, the Camel brand plan. would that then (7) include several other plans like the promotion plan and the (e) media plan? (9) A. Yes. (10) Q. And that would all be one (415) 92-0650 U - S/30/97 document that would be (11) put XMAx/791 together. so that if anyone wanted to look at what Camel (12) was going to do in a particular year. they could just grab (13) that one document? (14) A. Right. But remember, It's a plan. That doesn't (Is) mean that was actually what was done, one. And two, the (16) amount of detail varied. (17) Q. Would it typically identify, for example, the cost (18) of any particular aspect of the plan? (19) A. Sometimes. (20) Q. But there are plans that.you're aware of between (21) your involvement at Reynolds on the Camel brand that would (22) have not included the detail with respect to how much money (23) was going to be spent in a particular area? (24) A. Right. Yes. (25) Q. Which - do you remember which years that Page 588 (1) occurred? , (2) A. No. ~ (3) Q. Was that the standard practice for the Camel (4) brand? Or was that - (5) A. No. ; (6) MS. BIXENSTINE: Objection. Was what the standard (7) practice? (8) MR. JANECEK: Q. You can answer. (9) A. Again, we would put annual plans together. There (10) would be spending around those plans. If the spending was (t l) identified in the actual plan presentation or plan deck, (12) that would vary. Sometimes spending would be Identified in (13) it, sometimes it wouldn't be. It doesn't mean you didn't (14) have an amount you planned to spend, it may just not be (15) identifled in that document. (16) Q. So it would be identified, for example, in a (17) budget? (l8) A. Should be identified in a budget. (19) Q. And now would that 2991. taking that year (20) hypothetically, 1991 annual brand plan or annual Camel brand (21) plan, would that one document that's got all the plans we (22) were talking about, also include the budgets? (23) A. Not necessarily. Sometimes it would, sometimes it (24) wouldn't. There were plans put together that didn't (25) identify the amount of spending on each program, just talked Page 589 (t)about what programs were being done. (2) Q. So - but the budget might have Page 583 to Pa;e 389 51714 2168
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a vv..a.. .a iarsa(, • Errata Sheet Witness: Lynn Beasley, Volume II Case: Mangini vs R.J. Reynolds Tabacco Company Arch vs The American Tabacco Company Date: May 30, 1997 Note: If you are adding or deleting from your testimony, please print the exact words you wish to add or delete. Specify each change with "add" or "delete" and sign this sheet. Page Line 685 18 "pier" should be "peer" 686 25 "pier" should be "peer" 687 1 "pier" should be "peer" Witness's Signature: Date: %-1
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Mangini vs R.J. Reynolds Tobacco Lynn Beasley, Vol II, Confidential - 5/30/97 359~ PAGE 34'I TO PAGE 397 CONDENSED TRANSCRIPT AND CONCORDANCE PREPARED BY: TOOKER & AN7Z Certified Shorthand Reporters ,. 131 Steuart Street, #201 San Francisco, CA 94105 Phone: (415) 392-0650 FAX: - (415) 512-9543
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1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RLAINTIFF'S FOR IDENTIFICATION DESCRIPTION PAGE [MANGINI] 'No. 19 (ARCH] No. 1 No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 Curriculum Vitae for Lynn J. Beasley 352 *** 12-9-59 Letter - McGovern to Sugg with 463 attached Youth Research Institute Study 7-9-80 Memo -.Duffy to Frydman 465 4-9-68 Memo - Haller to Blevins 467 9-26-72 Memo - Sherrill to Smith 470 Strategic Research Report - Younger 472 Adult Smokers: Strategies and opportunities 7-16-84 Memo by Nordine 474 7-3-74 Memo - Tredenni'ck to Christopher 477 1-15-85 Memo - Burrows to Winebrenner 479 3-12-86 Memo - Caufield to Iauco 486 2-9-89 Memo - Pennell to Sanders 501 *** [MANGINI) No. 20 Strategic Marketing Plan Situation 515 Analysis No. 21 Three pages of handwritten notes 548 No. 22 Strategic Research Report - Market 553 Overview And Key Trends/Issues. No. 23 Marketing Research Report - First 567 Usual Brand Younger Adult Smoker Media and Promotion Exploratory 25 1 No. 24 4-15-85 Memo - Nordine to Fackelman 571 1 TOOKER & ANTZ - (415) 392-0650
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9..e Snr NOm. A'liD$lII! Y, K.d. KeyDolCi 1 oOaCCo l.yna Besley, Vol. Q- S/30/97 ce.e ti t es LookSee Coacordance 639:2 I 605:2; 607.•1 S: 610:23 - ... .ra I 570:14, 16. 19; 571:3 12 13: Report 15 (8) 353:20: 398:17,• 400:22: 1986 (6) 4889; 489:3, 4. 16. . . 595:2; 397:21: 607:18 23: 409.24; 410.•9,• 499:.f; J29:19; 21; 682:12 . 609:24: 610:3: 611:1 6 9: 937 577:20 : . 1987 (11) 461:10; 486.9, . . 61S:2S; 616:5 8 13 11 18 UNIQUE WORDS: 2, 1S•year (1) 554:19 492: 7,• 517.•6; 540:13 19; , , . , : 620:5 12 1S 18 664 8 TOTAL OCCURANCES:19,748 1Stb (1) 479:25 , 586:4: S97••18; 615:24; 682:19, , . , ; : ; 665:9 12; 678:21 NOISE WORDS: 38S 16 (4) 446:1. 22: 665:10, 22 20 , 2S (32) 456 •12; 458:8 17 18 TOTAL WORDS IN FII.E: 161-H (1) 409:3 198748 (2) 461: 7,• 549:22 . , . ; 460.•9: 461: 2: s62: 23: .t78: 9 56,765 17 (8) 467:6: 471:14; 478:2, 1988 (16) 403:18: 433:12; ; 486:11; 492:18: 493:19: 494:6 11; 499:21; 637••18; 638:12; 493:22, 24,• 497••2; 503:6; • 9 13; 495:2: 498:3 501 7 • SINGLE FILE CONCORDANCE 639:2 S/7••7,• 334.•6: 536:4, 8: 540:13, , ; , : 521:9r 522:9: 526.•20: 546:18: 17th (3) 398:24: 406:16; 17,• 613:24: 617•13, 16, 20 S64:S; 577.•3 4 1 7 18; 592:6: CASE SENSTI7VE 687.•22 1989 (3) 303:20; 390:24, 25 • . • , 595:3• 4; 620:12, ;!S 18 (16S) 402:D• 444:6. 9. 13, 1990 (3) 445:15; 555:11: 26 (7) 452:6 19; 454:9; NOISE WORD LIST(S): 14.17.21, 23: 445:2, S, 11; 557.9 , 471: 23: S 93:12 13: 665:17 NOISE.NO1 446:9: 447.•1, 4, 12, 13, 18, 20, 1991 (13) 445:19; 446:1; , 27 (5) 607.•S, 6; 610.9; 631:4 21, 25, 448:3, 7, 9: 4SS:20,• 579:12; 580:15, 19; 581:10; , 1! ' INCLUDES ALL TEXT 4S7••9; 459:16: 460:3, 9. 22: 586:25: 587,•2, S138d:19, 20,• 28(2)612:14 15~ OCCURRENCES 461:2t 471:19; 473:6, 8. 11, 630:22; 632.9 , 29(21641:17,18~ 13, 20,• 478.d; 482:21: 483:3t 1992 (21444.6. 7 29.4 (11558 13 Ln INCLUDES PURE NUM3ERS 484:6: 485:24,• 486:10,• 491:6; 1993 (2) 630:22; 632:9 . 293 (2) 668:6: 675:20 ~ 492:21: 493:3, 6, 13, 14; 1994 (2) 631:3.11 ~ 29th (1) 472:16 N WORD RANGES ® BOTTOM 494:18, 23; 493:1, 7, )0, 13, 1997 (S) 352:4; 4S2:S: 454:8: 2:15 (2) 512:18 19 ~ OF PAGE 17. 24: 496:16, 19; 498:3: 512:22: 604:7 , 2:18 (2) 512:19. 21 -~ - 499:1, 6, 24; 500:13, 18; 1027 (2) 479:14, 16 N 2:20 (2) 514:19, 21 r 501:1, 3. 7; 303:3, 9; 306:24; lst (1) 594:3 227 (2) 314:21, 25 J $2 (1) 3SS:18 521:8. 23: 522:2, 3, 9, 25: 523:22; 526:19; 329:12, 16; -2- -3- -~- 530:6, 14; 540:5, 11, 14, 21; 2(19) 465:6 7 • 475:1 S: 3(10) 467 •1 S 16; 468:6: 343:4; 546:17, 23; 549:4, 11, , , . , 085 (2) 620:9, 12 13 15 18; SS0:1; 331:9 10 476:16: 487:7; 490.•4; 540:25; 475:18; 490:4; SS4:10; 571:19• 088 [11 620:19 , , , , 13, 18, 19, 20: SS8:21. 22; 543:9; 345:9.11, 21; 549:3, 22: 608:23; 611:11 4: 370:6 SS9:3 (1: 566:2 14 10; 571:18; 596:7; 621:1 S; 3.2 (1) 540:19 -1- , , . , 682:5, 25 3 3 (2) 540:19 1S 19: 571:2 3; 394:3; 18 . , , . 2.2 (2) S6S:24; 566:1 30 (141448:14 21: 449:16 21 1(13)352:9:463:3.4,14: 597:21; 607:16, 18, 22, 23; 20 9 , , : 472:17 • 475:10; 476:11: 490: 3 609:3, 20, 24; 610:3, 13. 19, (83) 35 :22: 360:2; 361:2; 450:1 S; 454:14: 4SS:1. 8: . , 362:2: 363:2: 364:2; 365:2; 458:8: SS4:9: 644:6 8 13: 7: 544:18: S6S:23; 610:7 9 22,24:611:1, 3,6, 8,9, 14; . • , 1.600 (1) 469:14 61S:2S:616:5, 10, 11, 13, 17, 366:2: 367.•2; 368:2: 369:2,• 370 3 665:17 10 (10) 429:1 19; 430 13; 18; 620:5, 7, 12. : 2: 371: 2: 72: 2; 373: 2: 300 (1) 402:9 , . 374:2: 375:2: 376:2; 377 •2: 30tb (3) 352:4: 512:22: 604:7 501:12. 14, 16: 531:25; 332:1; 14. 1S, 17; 623:10; 624:2; . • 378 2 379 2 80 680:3 6 625:7; 637:25: 664:8, 16, 18, : ; : ; 3 :2: 381:2; 31 (3) 646:13, 14: • 673:23 • 382:2; 383:2; 384:2; 385:2; 32 (4) 452:19: 66a:3 4; 681:8 10-84 (1) 489: 7 23; 665:9, 10, 12, 23; 678:21 3 . 10 8(11503:9 18-20 [1) 607.•13 86:2; 387:2; 388:2; 389:2; 320,000 (11313:7i . 100 (2) 426:19; 589:22 189 (2) 578:22: 579:17 390:2; 391:2: 33 (4) 457:2; 681:9. 10. 12 10:06[11398:8 1917) 352:20, 21; 445:11: 392:2; 393:2; 394:2; 395:2; 333 (1) 351:13 ; 10:07 (1) 398:6 446:9; 468:11: 526:19t 572:22 396:2; 397:2; 427:20; 469:15; 478:4; 482:21; 484:7; 485:25; 34 (25) 461: 2: 486:11: 49.:18: 493:19: 494 •9; 495: 2 10 17; 10:21 (1)407:13 1946 (3) SSS:17, 21: SS7.•1 Z 4 303 9 528 513 3 9 25 . . , • 10:22 (1) 407:18 19S0s (41504.2. 5, 9,• S0S:11 , : : : ; :1 . , 498:3; 501:1. 7• S03:S: 521:9: 1959 (3) 463:20 21 464 15 531:22: S40:S, 11, 14, 21; 522:10; 529:10. 16: 530: S. 14: 10th (31352: S: S12: 23: 604: 8 , : . 543:4; SS1:9 10 20; 13 546:18: S9S:3: 616: S 17: 11 11 (3) 447:17• 23, 24 1961(3) 555:18. 22; SS7.•13 , , . 564 3 567 6 17 570 8 6 . , 6 11•12-68 (11644:11 1965 (4) 4S2:S, 19: 454:8: : ; : , :1 . 1 : : 20:13, 1 S SS8:23 571:2; 594:5; 607:16, 22; 3S(12)438:9. 11• 1718: 11:03 (2) 438:22. 23 609:3 24; 20; 610:13 19 22 494:7 13 17; 555:7 11; 11:06 (2) 438:23 25 1968 (43 468:11; 644:11; , , , , , , . , 646 2 3 611:3, 8, 9, 15; 620:7, 12, 14, 557:9; 595:2; 647:8 11:40[11463:8 : . 15 36111557:14 11:41(1)463:12 1970s (2) 461:12; SSS:16 205 111519:18 37 (2) 446:11; SS7•14 11:47 (11465:11 . 1972 (2) 471:2j; 646:22 4 1973 646 21 2 21 (7) 444:8; 478: 7• 523:1: 3913) 409:12; SSS:S: SS7:9 11:48 11146S:1S . .( ) : 671:15 1974 477 •14 2 548:2. 3: 620:12, 15 397 (39) 359:22: 360: 2: 361::: 11:52 (11467:20 11:54 (1) 467:24 ; ( . J 1980 (1) 467:9 22 (2) 533:22, 23 222 (3) 3S2:S; 512:22; 604:8 362: 2; 363: 2: 364: 2: 365: 2: 366:2; 367:2; 368:2; 369:2; 11:58 (2) 470:6• 8 1980s (1) S3S:6 23 (2) 567.•12 13 370:2; 371:2: 372:2; 373:2: 12 (3) 446:2: 469:15; 529:19 1981 (113SS:10 , 2330 (11351:18 374:2; 375:2; 376:2; 377:2: 1200 (2) 453:11 21 1982 (2) 409.25. 467• 13 . 12:11 (2) 470:8• 10 1983 (2) 473:21: 540:19 24 (751448:3, 7. 9, 15. 4SS:20; •10: 459:16; 460:3 457 9 22; 378:2; 379:2; 380:2; 381:2: 382: 2: 383: 2; 384: 2: 383: 2: 12:23 (1) 474:17 1984 I7) 472:16; 482:20,• . , , 461:2: 471:19; 473: T 478:7 • 386: 2: 387: 2; 388: 2: 389: 2: 12:25 [1) 474:21 SSS:12; JS8:23: 619:8, 18, 19 , 12:35(2)479:12,14 1985 (29) 479:23; 480:14; 486:10: 491: 6: 492: 21; 493: 3, 14; 495:1 13: 498:3; 6 13 7 390:2; 391:2; 392:2; 393:2: 394:2: 395:2: 12th (2) 489:21: 682:12 484:14; 486:6, 14; 489:13: , . , . 24 540 19 567 571 17 499:2, 24; 300:19; 501:3, 7; 396:2; 397:2 13 (4) 549:16; 616:8, 13, 23 467 14 (8) 446:12 6 471 16 : : : : : ; 572:13. 18, 22, 25; 574:2: 521:8, 23; 522:2, 3. 9. 25; 3:48 (2) 371:7 9 ~ : ; ; , : 17; 499:21: 637:17,• 638:12; S7S:17, 25, 594:3; S9S:12: 523:1, 22; 543:4; 546:17, 23: 549:15; SS1:19; SSS:S; SS7:8; 3rd (1) 477:14 S97•17,• 604:12, 13, 1 S, 23; Tooker & Antz (41S}392-0630 From S2 co 3rd
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PLhINTIFF' S FOR IDENTIFICATION DESCRIPTION PAGE [MANGINI] No. 25 Promotion Agenda 577 No. 26 Marketing Research Report - Camel 593 Younger Adult Smoker Focus Groups No. 27 6-10-85 Cover Memo with attached 607 Consumer Research Report - Smoking Behavior and Trends Among 18-20 Year Old Smokers No. 28 Younger Adult Smoker Opportunity 612 No. 29 3-6-78 Letter - Kornegay to Hon. 641 Paul G. Rogers No. 30 New Business Opportunities Arising 644 From Long-Range Research Planning Tobacco - Health Problem No. 31 Research Planning Memorandum On 646 The Nature Of The Tobacco Business And The Crucial Role of Nicotine Therein No. 32 7-3-74 Memo - Tredennick to Christopher 662 No. 33 3-12-86 Memo - Caufield to Iauco 681 ---000--- TOOKER & ANTZ - (415) 392-0650 2 I 2
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e..e s,.~ Aw+1=0• Mangini v. RJ. Reynoids Tobacco categorized (1) 471:11 categorizing (21620:5, 7 category (13) 427:22; 471:3, 18: 477:25; 418:1, S. 12; SJ1:16, 17,• 532:4. 12, 13; 547:1 Cauf(eld (8) 488:24; 489:11; 595:14; 604:13; 605:2: 606:3, 8.9 caused (1) 555:16 celebrate (3) 420:3; 602:9; 603: 7 celebrated (1) 617:20 celebration (3) 601:20; 617:13, 15 Center (4) 351:8, 18; 409:14; 410:3 Century (6) 489:10: 542:10, 13, 18, 2S: 543:3 CEO (1) 428:12 cetera (6) 417.-1: 422:25: 423:1; 435:22; 469:25; 476:1 S chair (!) 415:25 challenges (1) 678:16 chance (8) 439:9; 463:13: 474:23; 501:18: 548:7,• SS7••4: 561:22; 577:1 j change (8) 512:14: 527:15; 542:23: 583:19: 591:17,• 592:20; 603:25: 623:6 changed (5) 432:21, 24; 529:24: 591:16: 608:7 changes 191SS6:3; 560:24; 589:20, 22, 23; 591:6. 18; 592:23, 25 character (19) 506:23. 25. 507::.3•4.8.15,19,21; 508:1. 2. 18, 20; 598:8; 599.•S: 630.•10 character(stic (4) 401:18: 664:11, 13: 665:4 characteristics (8) 401:20. 24: SS0:24, 25; 631:23; 665:24; 666: 7,• 677:10 characterization (8) 4J1:19; 499:9. 15: S00:S: 503:16: 520:1: 570:3; 648:10 characterize (4) 421:4; 500:8: 614:2. 24 characterized (1) SS7:2 characterizing (1) 620:14 charge (3) 516:17,• S8S:18; 648: 7 chart (211 477:23, 24 charts (3) 582:11. 16 cheNing (1) 651:6 • child (1) 623:5 children (13) 409:8• 9; 621:23; 622: 7,• 623:4, 14; 624:6. 17,• 6:5:1: 642:1, 2; 666:15. 18 choice (4) 450:19, 22; 451:24: 491:11 choose (23) 442:9, 23; 443:13• 22: 449:17,• 451:20,• 45j:4: 457:2; 520:15, 23; 629:18: 678:24: 679:16; 684:i3• 16: 686:9, 15, 24: 687:6, 8. 10. 12, 16 chooses (8) 532:20; SS8:10, 22: SS9:24; 678:25: 679:7,• 687:1 S choosing (4) 526:2; 684:14; 686:14; 687:7 chose (S) 4j9:2S; 539:12; 628:15. 17,• 679.•9 chosen (4) 442:8: 449:20; 531:13: 532:7 Cbris (2) 397•22: 479:10 CHRISTIA.V (1) 351:19 Chuck (2) 430:12, 13 Cigarette (1) 464:13 cigarette (29) 426:16, 17,• 436:25: 437.•2, 4: 447:6, 13, 21, 25. 453:11, 22; 457.•2Sr 462:21; 477:21; 482:13: 521:4; 529:13; 531:3, 12, 17; S32:Sr SS4:8; 569:14; 642:1, S: 648:8, 18,668.17 cigarettes (73) jS8:11, 13; 426:6, 8; 434:6, 13, 18. 440.•9; 442:23; 448:19; 449:23: 459:18; 471:3; 504:4. 8; S0S:12: 509:1. 6: 521:3, 4; 529:12; 532:22; 609:5: 615:18; 621:10, 11; 625:16; 628:1l; 630:7,• 631:8; 634:4: 659:8; 668:18; 678:17. 19 circutttstances (1) 652:5 cite (3) 634:1. 2. 3 cited (2) 634:4 Cities (1) 464:14 claim (11453:22 claiming (I) 501:24 clarif(ation (2) 428:24; 448:17 clarify (2) 461:24; 642:12 Claude (5) 644:11; 646:8, 9, 22: 663:10 Clean (11507.14 cleaning (1) 507:14 clear (S) 408:17,• 459:23; 508:23; 536:9; 650:22 clearer (1) 487.•S Cleveland (1) 351:3 clever (1) 401:21 client (2) 501:25: 6$6:6 Cliff (4) 431:15, 24: 433:12; 502:18 Clifton (1) 502:21 closer (1) 542:25 cloth (1) 672:25 clue [1] 484:16 co-counsel (4) 399:12; 400:12: 513:3 coacb.d (1) 511:11 coaching (1) 511:16 coaitte (3) $09:2, 6 Code (1) 688.-9 code (2) 416:15, 17 codin= (1) 568:2 coercive 111436:23 colleague (1) 509:8 colleagues (1) 359:19 coUect (1) 638:17 collected (2) 638:14; 640:2 College (2) 410:3; 464:13 colon (6) 467:5: 468:7,• 616:10, 17,• 647:21 comiag (1) 438:5 commerce (1) 441:12 commissioned (1) 499:19 Lynn Be:itley, Vol. II- S/3o/97 c.,m,..v,, t,fti~s„ comtttitment (1) 61J:1S 1 Compound (1) 557:11 cotnmittee (7) 429:22, 23; 430.•9, 15. 458:22; 460:18; 614:7 common (2) 524:17; S32:1S commonly (2) 613:24; 614:2 communicate (13) 401:21: 423:5; 424:18, 21; 425:20, 21. 22. 23, 24; 485:10; 497••24; 625:25: 629:17 communicated (1) 642:5 communicates (9) 424:19, 20, 21; 426:16, 18, 19, 20 communiating (1) 426:21 communiation (2) 422:11 r 487••2S communicators (1) 424:1 Community 111410.3 Companies (1) 641:10 com pan (es (7) 434:1. 16; 466:15; 473:2, 16: 642:1,14 Company (34) J31:5,11; 3SS:11; 358:23: 407.•22; 456:12t 463:20, 211464:2; 463:2, 3; 466:5; 468:13; 318:16; 319:6, 13. 15, 24: S20:S; 521:19; 524:16: 562:18; 564:21; 576:1.1. 16; 579:1; 380:14: 592:13, 14; 614:21: 637.21. 639:18: 663:11: 671:2 company (72) 354:14, 17,• .338:1 S: 410.9.18, 24, 25, 411:6,13;413:12,13,18,24: 416:9.11,13,17,21t428.•6: 441:10; 442 r 12, 20. 444.6. 448:22t 451:12; 452:13; 453:3; 4S4:2S: 456:13. 23, 23: 457-•3: 458:3, 4, 12; 459:10; 461:17. 18.462.20, 466:23, 23; 468:18; 472:25; 475:4; 480:2, 16; 487:2; 504:1S:S05:6, 10. 11;336:23; 344:12: 539:21; 562:5, 10, 13; 564:2; S6S:10, 16: 572:5; 601:11; 638:13, 16. 21; 642:18; 643:9. 13; 650:21: 631:2; 659:8, 11 compare (1) 543:4 compares (1) 523:3 comparing (1) 645:13 compelled (1) 651:20 Compelling (1) 537.•1 competent (10) 561:9, 11: 566:11, 15. 21. 22: 671:2. 11. 13, 680:23 competition (6) 418:19: 4j8:13, 14, IS, 16; 523:3 competitive (12) 356:13, 15, 17,• 357:2, 10; 462:16; 522:16; 523:13, 18; Sj9:13; 578:18; 686:24 competitors (1) 461:9 complete (S) 411:20; 580:18; 583:22; 650:7 11 comp'o:ted (3) 399:22; 400:19; 575:19 completely (4) 460:17,• 601:18; 602:3; 624:25 completion (1) 575:17 component (2) 418:20; 432:19 compound (9) 429:8; 450.9; 462:11: S8S: 4: 621:18: 628: 9: 635:18: 636:14, :0 comprebetnive (2) 67Z:21: 673:5 comprised (2) 417:17,• 419:17 con 111SS1:13 conceive (t) 462:2 concentrating (1) 571:25 concept (17) 419:10; 420:1; 423:23; 527.•7, 11: 533:21; 545:1; SS 1:10. 14: 532: S. 8. 10; SS3:9; SS6:18: 358:11; 559:16; 629:25 Concepts (2) 419:17,• 420:13 concepts (2) 419:24: 420:11 conceptual (2) 418:14. 15 conceptually (1) 431:8 concerned (2) 513:15; 518:10 concerning (I) 504:3 concerns (1) 506:13 conclude (8) 482:20: 527.•3, 4: S47••20: 552:19: 631:13; 648:18. 21 ' concluded (S) 56L•1; 633:22; 650:2: 657:2: 688:12 concludes (9) 114:2; 563:18: 633: 6: 635:16; 636:11: 648:17,• 653:22. 24; 688:5 conclusion (9) 443:25: 527:12r 562:25; 622:18, 19; 62 7.• 16; 654:1, 2: 637.• 13 conclusions (4) 649:13; 653:13; 657.•3; 663:18 concrete (1) 590:22 conduct 111469:14 conducted (13) 637:15; 641:23; 642:14, 15, 18: 643:6. 9.11,12,13,24;649:8 conference (2) 359:21; 397:21 COAIFIDENITAL (39) 359: 2J: 360: j: 361: 3; 362: 3: 363: 3: 3643; 365:3; 366:3; 367:3; 368:3: 369:3; 370.•3; 371:3: 372:3: 373:3; 374.•3: 375: 3: 3 76: 3; 3 77-3: 378:•3: 379: 3: 380:3; 381:3; 382:•3; 383:3; 384:3; 385:3; 386.•3; 387:3; 388:3: 389:3; 390.1; 391:3; 392:3: 393:3 : 394:3: 395:3: 396:3; 397:3 conf)dential (2) 400:5: 367:21 confirm (4) 598:1 S; 641:14; 642:13: 647:2 confirmed (31495 :3: 598:13. 22 contlicts (1) 41j:17• conform (S) 649:3: 674: 7. 17. 24; 675:2 Conformance (1) 478:17 conformance (S) 668:14; . 6 74:17,• 6 7S : 6; 6 76 :16 : 6 77:17 confuse (1) 424:23 confused (4) 464:5; 530:4; 546:24; 547:18 confusion (I) 396:16 conscious (1) 572:20 consider (S) 529:7: S31::5: 534:1: 648:1: 661:1 S • Tooker & Antz (415) 2-0630 From categorized to consider 51714 2181
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Tooker & Antz 11, 13, 15, 16. 17,• 430:12r 454:1. 6: 456:9, !S• 17•• 4S9:S: 466:9; 468:1; 477,•20; 480.5; 486:24: 487:13; 493:1: 498:13; 508:7,• 512:8; S1S:13: Si6:5: S2S:14; S27••19• 25: 534:15: 578: 6; 588: 8: 626: 22: 62 7.•8; 6.12:25; 635:22; 636:18, 21: 649:21; 655:20; 637:1: 669:17 answered (28) 451:17,• 486: l7,• 511:10: 521:13; 523:20; 527:8• 17. 22: 536:16; 537.•23: 538:5: 591:13, 21: 395:21: 605:23; 607.•19; 621:3: 625:3; 626:12. 13; 627•-S. 6: 633:18; 658:4. 11, 16; 671:20,• 686:5 answering (2) 442:18; 636:5 answers (4) 409:17; 470:1: 510:20; 592:6 anybody {41440:24,• 670:19, 23: 671:21 anymore (2) 434:7• 508.•2S anywhere (1) SI7.•22 apologies (1) 514:13 apoiogize (1) 4l2:7 apparent (2) 477••16: 677.•6 Apparently (I) 397.•22 apparently (1) 663:2 appeal (11) 486:12: 491:14; 495:10. 17,• 498:5; 506:24; 597:23: 598.•4, 9, 2St 599:6 appealed (3) 495:4: 596:20; 599:24 appealing (4) 491:6: 492:11: 494:19; S96:1 S appeals (23 S97••2S: 398:5 appear (5) 480:1; 487.•1; 501:21: 363:4; 395:10 appeared (5) 331:4, 10. 15. 20: 596:13 appears (1s) 465:1; 507.•S; Sd9:2; 343:24; S48:S; 558:17,• 560:14; 564:25; 370:17; 645:13; 648.•6,18; 649:1: 674••9, 2S applies 111552.16 apply (1) 469:5 appointed (11573.1 appreciate (4) 432:3. S, 8: 557•2S apprise (1) 413:22 apprises (1) 411:7. approach (7) 404:18; 406:2: 490:4: J23:6: 337••7: 547:19: 589:18 approaches (4) 403:8; 405: J6; 491:1 S: 497••22 appropriate (1) 416:24 ' approved (1) 405:13 Approxitttately (1) 409:5 Apri/ 111468:11 Arch (42) 398:11: 399:12, 13: 407.•1 S, 21; 408:14; 417:1 S: 463:3, 4, 14; 463:3, 7; 467:1 S, 16; 468:6; 470:13, 14. 18: 471:24; 472:1, 8,• 474:11, 13. 23: 477.•S., 7, 9; 479:17. 19: 486:18, 19. 21; 501:12, 14, 16; 513:4, 15; 514:3, 7, 15; Lynn 13efisity, Vol. 11 - S/30/97 c-e,,,,,,,, f,,,a, 662:13. 1S Area (I) 688:9 area ( t ) 587.•23 areas (3) 422:14: 427.•2; 431:4 aren't (3) 418:1 S: 425.•9: 443:24; 668:4; 684:23 arguable (1) 450:23 arguably (1) S05:S argue (1) 452.6 argumentative 151451.17. • 459:4: 527.•16; 567.•1; 685:2 arising (1) 644:24 arm 111663:11 arrival 111618.21 arrive (1) 660:23 article (2) 635:15: 636:10 Articles (u 622:15 artJcles (2) 636:23: 637••3 articulated (2) 603:21: 634.6 artist (1) 601:16 aside (1) 638:15 asking (28) 398:17,• 436:7, 9: 442:21: 450:1. 2. 3: 451:10,• 460:8; 461:23: 462:1, 8; 498:19, 20; 499:24: 500:21: 310:25: S3S:8: SS6:10: 592:4; 609:19; 614:12; 630:19; 639:25; 656:8. 9; 685:13 aspect (3) 420:11: 587.•18: 648:1 aspects (2) 490:2: 596:12 auas (1) 61S:2S assessment (3) 631:2, 23; 632:19 assigned (3) 562:8: 604:23: 605:5 Assistant (1) 489:7 assistant (7) 484:15. 18: 483:14, 20: 489:5; 614:22, 23 associated (5) 491:13; S0S:22: 506:1, 8: 601:10 ASSOCIATES (1) 351:22 Aasociates (4) 352:7; 512:2St 604:10; 688:8 assume (8) 404:14; 418:10, 11; 458:18; 528:25; 529:2: 545:2: 558:21 assumed (1) 443:23 assuming (6) 443:21; SS9:17,• 560:11; 599:16: 619:18: 62S:1S assumptions (I) 566:16 attached (4) 420:11; 399:17 616:16. 24 attainable (1) 650.•6 attempt (3) 399:13; 406:23: 422:8 attead (1) 624:18 attendance (1) 497:7 attention (19) 401:25; 490:11. 15; 497:13; 503:3, 25; 504:6: 303:10; 543:18; 544:2; 563:10, 16; 579:17,• $95:10, 15. 596:14: 610: 6: 674:16; 682: S attitudes (4) 468.9: 469:4; 475:11, 12 attitudinal (1) 529:6 Attorney (6) 351:4. 10. 15. 19: 466:4, 14 attorney-client (3) 6SS:18, 24; ~ (41 S)`492-0650 656:7 attract (M 442:2: 47j:17.• 521:23, 25: 523:16, 17: S?.ta: 546:5: S9S:10: S96:13: 649:14. 25: 650:3, 14: 651:17 attracting (7) 439: 9: 442:3: 457.•1, j: 473:19: 520:25: 521:19 attractive 111629.2 attributes (1) 404:21 Audience (1) 490:8 audience (41490.1. 492:12: 496:11: 679:2 August-September (I) • 482:20 author (17) 539:1. 8. 22: S4S:3• 5.17, • 546:3• 10, 1S; 547-12, 21: 548:25: SS0:7•• SSS: 3: SS6:10: 601: 23. 24 authored (3( 475:1: 488:23: 656::0 authority (8) 664:7.• 667:1• 4, 7,• 675:13: 676:5. 9. 11 authors (3) 636:23; 637:4; 67'7.•1 S automation (1) 458:24 available (14) 398:22: 399:7. 11: 406:16: SS4:24: 557:22: 558:2: SS9:20: 560:15: S6?:S: 566:2; 593:19; .600:9: 684: 8 Avenue (1) 951:3' avenues (I) 422:14 average (13) 445: y0: 446:8: 503:7•• 526:18: SY12: 541:21, 22. 24: 543:10, 14, 16: SS6:3 Avoid (1) 476:19 , aware (47) 405:21; 411:3: 462:14, 17. 19. 20• 21; 506: 7• 9: 520:7•• 542:19: SS1:21; SS4:13: SS6:24: 574:24: 587:20; 597:17: 605:21 • .a; 606:5: 6l1:8: 613:19: 618: j. 8. 13, 14. 1 S: 621: 22; 623: 4; 627:16: 631:13• 17; 633: S: 637:14. 19• 22: 638:10• 13. 15, 18, 20; 643:5. 11. 13; 670:13. 16 awareness (1) 454:13 -B- B-E-A-S-LE-Y (1) 408:24 B.A. (I) 414:13 B.S. 111414:13 BA (1) 414:15 babies (2) SS4:21; 556:13 Baby (2) SS4:12: SS6:12 baby (14) SS4:12. 1S• 23; SSS:S, 10. 17, 23:SS6:11 • 16. 23, 24: SS7:3, S• 8 Background (I) 594:13 . background (2) 408:19; 569:7 backwards (3) 398:21: 399:15; 593:4 - badgered (1) 626:15 BALLtNGER (2) j51:1S: 397:24 Ballioger (2) 359:20: 997::0 BARBAGELATA (1) i51 •22 Barbagelata (4) 352:6: 512: 24: 604:10: 688: 8 From agains to Barbagelata 51714 2180
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woman (1) 452:16 women (1) 477.•2S won't 14) 423;20; 474:9: 486:8; 510:23 word (10) 436:22: 444:1, 7; 434:17,• 490.13.17. 508:24; 641:23: 675:12 words (10) 358:18; 454:19; S 24: 7 18; 615.6. 7: 623: 71 632:24; 653:19: 677:14 work (23) 354:11, 14, 21: 357.•18: 403:2, 7• 410:3; 467:12: 504:1: 513:16; 542:6. 10: 601:17,• 602:4, 12; 611:5: 650:20; 652:14; 6SS:20; 656:3, 14, 21; 666:17 worked (131483:5, 6, 12, 19: 485:1 S; 504:7,• 305:4: 541:11, 18. 25. 542:7. 19. 602:5, 6; 6SS:10 working (17) 354:17,• 353:4, S; 421:8; 434:13; 435:16; 467:10,• 482:23; 483:22: 484:1; S7S:1: 589:19: 603: 20: 606:1; 614: 9: 640:23, 25 works (4) 424:3; 654:23t 686:8, 22 World (I) 594:21 world (11629:21 worry (1) 510:23 Wouldn't (1) 544:24 wouldn't (30) 3S2:1S; 413:3: 414:2; 421:3. 20; 4SS:9; 461:20; 484:16; 487:23; 524:17, 22: 529:13: 543:12; 546:2: 561:19r 362:4; 564:3; 565:3; 582:1, 24; 584:17,• 588:13, 24; 589:11; S91:S. 9; S9j:4, S: 614:23; 680:12 Write (1) 353:10 µTite (5) 353:11; 516:18; 584:3r 611:23; 651:! writing (6) 516:17•• 569:24; 641: 24; 642:13: 651:21, 23 written (16) 463:19, 20, 25: 466:7; 482:24: 488.•8• 20, 23; 489:16: 502:9: 566:6; 636:23: 643: 21: 650:14: 651:16 Wrong (1) 457:11 µTong (13) 451:1, 7; 453:21, 2 2; 456:6, 7,• 460:17,• 548:21: 551:17; 566:15; 622:18: 624:24, 25 wrote (13) 353:17,• 4069; 487:1 S; 517: 23; 544:10; 548.•19; 551:22; SS3:16: 61 S: 22; 650: 2S; 652:1: 654:4, S -Y- ya-de-da-de-da (1) 423:20 YAALS (1) 503:8 YAS (6) 448:11; 460:4; 492:21; 493:13: 32S:S: 571:7 1'eab (111426:7,• 432:6; 544:1; SS2:3, 25, S6S:19; 570:1; 592:10; 647:17,• 648:20; 681:22 yeah (2) 554:11; 564:11 year (78) 3S4:1S; 358:24; Tooker & Antz 402:10; 444:21; 445:2: 446:7, 8; 4Sj:13; 4SSr20; 457.•10: 473:6,8,11,13,14,19,20; 482:21; 483:3:484:7,• 48S:2S; 492: 21: 493.1. 13: 494:17.• 495:7; 500:19: S03:S• 9; 507:24, 25; 521:24; 524.•20: 529:10; 540:14, 21; 542:13, 22; 549:11. 13; SS0:1; SS1:9, 10, 14, 20; 566:2: 570:6: 571:2: 574:11: 580:5, 9; 583:15, 17; 587:12; 388:19; 389:7, 12. 13. 17, 19; 590:3, 8, (0, 13; 591:2. 10, 12; S94:S: S9S:2: 601:11: 605:19: 610:19, 24; 611:15: 619:4 yearly (1) 586:12 Years (1) 641:5 years (54) 409:5. 23, 24; 410:9, 19: 4j9:20,• 440:16; 441:1 S: 442:3; 444:6, 8, 9; 448:1 S, 21: 449:16, 22; 450:1 S: 452:20; 454:14; 453:1, 9; 457:8; 462:23; 473:1: 479:3: 499:5: 507.•16; S08:IS: 528:19, 25. 529:19; S30:S, 14: 531:25; 532:1; 549:4: SS4:9; SS7:19; 564:5; 569:20; 574:4; 576:17; 587:25; 598:13; 633:12; 644:13; 666:22; 671:5; .672:5; 676:18; 682:13 yell (1) 509:23 Yesterday (2) 401:16, 20 yesterday (20) 358:21; 359:14: 407:24; 408:21: 410:1: 419:12; 421:10: 440:11: 441:25r 472:5; 488:25: 507.•1: 533:1 S: 386:14; 592:4; S9S:20• 23: 603:21; 613:11; 621:6 yielded 11147,1:20 You'd (1) 417.•11 you'd (7) 359:1; 413:7,• 590:14; 640:12; 642:22: 651:15: 681:25 You'D (1) 453:8 you'll 111450:20 You'.e (20) 452:1 S; 454:16: 486:17,• 499:21; $01:3t S0S :14; 510:19; 511:8. 9, 111524:6, 13. 15, 568:1 S; 605:10; 613:7,• 664:/9: 665:2; 681:19 you've (s81358:3,19: 407•23: 408:3: 409:18; 410:4, 18; 411:4: 416:7; 419:8; 421:17,• 422:2, 7, 8, 10: 437••1, 16; 439:16; 440:10,• 442:4: 448:3; 450:1,,3t 457:7, 22; 463:13: 466:3: 472: 4: 474: 22; 492: 20; 505.9, 311:7; S15:6, 25. 517.•14; 318:11: 526:3; 530:4; 546:20; 548:17; 549:25; 554:1; SS7:4, 5; 564:9; 568:8; 578:2; 592:15: 612:16: 624:9; 632:14; 644:15; 646:23; 673:8; 676:22 Young 111564:8 young (481452:16: 459:16; 460: 4: 476:17, 23: 478: 20,• 479:1; 520:11, 16; S21:S, 12, 14, 15. 522:7,• 523.6. 12, 17• 526:23; 528.•6; 530:2; 544:16; _a.Ynn oeassiey, . ot. u • S/30/97 548:23, 2S: 549:13: SS8:18; . 564:1, 3,17.18. 2Sr 570:10, 12, 13,16; 573:14,16; 594:23; S98:S: 601:8, 1S: 606:19, 21. 24: 676:19; 677:19 Younger (17) 448:12: 472:13, 23; 474:25; 493:15; 548:6; 565:12, 15, 571.•9: 599:2: 609:24; 610:21, 22; 612:4, 20; 614:1 younger (88) 473:17,• 475:15, 19; 476:1, 12, 22. 24; 477.•1: 481 :6: 491:11; 493:14: 495:8, 15. 21, 24. • 496:16: 498:8; 499:6; S00:1, 12, 23: 523:22, 24, 2S: 326:1, 9; 544:111 S4S:S; 546:3, S, 9, 11, 19: 547.•22: 365:9, 12. 14: 569:13, 23; 571:1: 594:1, 16, 24: 39S:1S: 596:15, 21; 597:24, 25; 598:16; 599:1, 24: 606:11: 607:13, 16, 21, 22, 25; 609:4, 20; 610:12; 612:7, 23; 613:2, 8, 12, 16, 21; 614:5, 18; 613:4, 6, 10, 17, 19; 616:3; 617:5; 618:5, 9, 11; 619:1S; 620:4, 17, 23; 621:18: 623:14; 664:6, 16 yours (1) 443:2 yourself (3) SS3:2S; 568:4; 646:16 yourselves (1) 539:21 Youth (2) 464.9, 12 youth (3) 6I8:8: 676:3; 677.•22 youths (1) 478:24 Giv.s q LMMs.M a) I (41 S) 92-0630 From woman to youth;
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I N MILBERG WEISS BERSHAD HYNES & LERACH LLP WILLIAM S. LERACH (68581) PATRICK J. COUGHLIN (111070) ALAN M. MANSFIELD (125998) RANDI D. BANDMAN (145212) FRANK J.,JANECEK, JR. (156306) 600 West Broadway, Suite 1800 San Diego, CA 92101 Telephone: 619/231-1058 BUSHNELL, CAPLAN & FIELDING, LLP ALAN M. CAPLAN (49315) PHILIP NEUMARK (43008) 221 Pine Street, Suite 600 San Francisco, CA 94104-2715 Telephone: 415/217-3800 Attorneys for Plaintiff &A&c EXHIBIT NO..,GS„_ M. BANTA ~/~/~ 7 SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO JANET C. MANGINI, On Behalf Of The ) Case No. 939359 General Public, ) ) Plaintiff, )• ) vS. ) ) R. J. REYNOLDS TOBACCO COMPANY, et ) al., ) ) Defendants. ) DEPT: 12 NOTICE OF DEPOSITION OF PERSONS MOST KNOWLEDGEABLE AT R.J. REYNOLDS TOBACCO COMPANY
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1.8 19 20 21 22 23 24 25 26 27 28 e U Person(s) most knowledgeable March 31, 1997 regarding location the cost, placement, and/or demographic 9:00 a.m. studies concerning: (a) Joe Camel billboard advertising; (b) Joe Camel magazine advertisingj and (c) Joe Camel point of sale advertising Person(s) most knowledgeable April 1, 1997 regarding the Joe Camel 9:00 a.m. Advertizing campaign's effect on Camel cigarette brand loyalty, image and identification. Person(s) most knowledgeable. April 3, 1997 regarding market research into 9:00 a.m. the best way to market cigarettes to persons younger than 25 years of age, including, but not limited to: (a) Young Adult Smokers ("YAS°); (b) First Usual Brand Young Adult Smokers ("FUBYAS°); (c) Younger Adult Smokers; and (d) Marlboro smokers. Person(s) most knowledgeable pril 7, 1997 regarding underage smokers, 9:00 a.m. including, but not limited to: (a) starter smokers; (b) .replacement smokers; (c) pre- smokers; (d) learning smokers; ( e ) YAS ; ( f ) FUBYAS ; ( g ) unger A u t mo ers; and (h) MaY - Person(s) most knowledgeable April 9, 1997 regarding consumption of 9:00 a.m. cigarettes by persons younger than 18 years of age. Person(s) most knowledgeable April 14, 1997 regarding when.and why new 9:00 a.m. smokers begin to smoke. N 2
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} U 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Person(s) most knowledgeable regarding RJR's decision to use the Camel brand to capture the young adult market share from Marlboro, and the strategies and methodologies used by RJR to capture the Marlboro smoker market. Person(s) regarding April 23, 1997 9:00 a.m. most knowledgeable April 28, 1997 the sale of Camel 9:00 a.m. cigarettes in California, •including, but not limited to: (a) number of Camel cigarettes sold in California; (b) the number of Camel cigarettes sold in California' s ma j or metropolitan areas; (c) the market share of Camel cigarettes in California; (d) the market cigarettes share of Camel in California's major metropolitan areas; (e) the volume of Camel cigarettes sold in California; (f) the volume of Camel cigarettes sold in California's major metropolitan areas; and (g) the number of Camel cigarettes sold to underage persons in California. L 3
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aYeb"ra AAWo1s ..KU ~ALy V. A.J. niJYV141 4VViI,LV ignored (I1673.-9 ign o rin g(21684: 24: 685: 9 1112) SSS:17; SS6:1 J illegal(1] 413:17 illiterate (1) 626:4 (lliterates (1] 62S:1S illustrated (12( 306:23, 2S; 507:4, 8. !S, 18: 508:1, 18; 598:8; S99:S: 603:2. 4 illustrator (8) 601:24: 602:5, 12, 14. 15. 18. 20: 603:17 illustrators (4) 601:10; 602.•6; 60j:14, 23 image (40i 420:16: 423:6; 436:17. 24; 622:7,• 629:8: 625:21: 627.17.18, 21, 23. 24; 628:1. 2. 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(t) 480:8 JA(YECEK (237) 352:11, 12, ; : , , : 17, 18; 653:25; 667:20, 22; 7 2 673 9 22; d S3: 4: 356.24. 358: S; 359:3, 8. 10, 13: 398:3: 399:1. ; . 1 , 16; 672:9, 1 : 679:4, 5; 687:3, 4 ingoing (1) 473:20 Init(al (1) 668:8 668 12 66 S: 400:14, 21: 406: ! 4, 19; 407:9, 12; 456:18; 474:7,• S14:S, 14, 18; S1S:1, 2. 6. 12, 18, 21, 24; 516:3, S, 22; S18:S; : initial (5) 9:21, t 672:20: 675:22 initials (1] 403:16 25: 519:10; 520:24: 521:2, 11, 18; S21:i31 (415)92-0650 51714 2184 i 525:14, 17; 526:22; 527:13. 19. 21. 24: 528:5. 23: 530: l. 18: 534:15: 536:15, IS: 537:10, 18. 21; 538.1. 13: 539:11: 541:1'3; 542:4: 545:11. 20; 547:18, 25; 548:4; 552:17: 553:10, 20, 24; 555:13. 19: 557:15. 24: 559:?; 560:6, 14. 25; 561:13, 21; 564:8. 20, 25; 567:5• 10, 16; 570:17.; 571:10, l4; 572:3, 6. 9; 573:20; 574:22; 577:1. 6• 12, ' 18. 22; 579:8: 580:20; 581:1, 5. 9. 13: 583:12; 584:17, 25: 585:6, 11; 588:8;591:12, 17. 25: 592:10, 17; 593:10. 14; 594:11; 595:25; 597:5; 599 :12. 23;600:4, 18;602:2,21, 24; 603:18: 604:12; 606:3. 9. 15; 607:3, 7, 18: 608:20: 609:20; 612:12• 16. 24; 614:12, 18; 615:8; 616:19. 21; 617:3; 619:3; 621:9: 622:13: 624:20, 23; 625:4• 13, 19: 626:11, 14, 21; 627:3, 8; 628:12; 629:20; 632:14; 633:5• 21; 635:13, 20; 636:3. 17, 21; 641:13, 19: 643:5: 644:7: 646:11, 16; 648:16; 650:17, 24; 651:14: 652:13, 18; 653:1. 9: 655:22; 656:8, 15, 22; 657:2; 658:1, 6. 14, 19: 659:7, 19, 23: 662:1. 5, 14; 663:10; 666:2, 8; 667:13. 20; 668:5: 669:2, 6, 9, 14. 17: 670:11; 671:6• 12, 18: 672:14: 673:8, 22; 674:11, 15, 21. 23: 675:17. 20. 22; 676:1; 680:5, 9• 13; 681:10. 15: 684 :7, 23. 685:5 : 686:16;687:21 ; Janecek (4) 398:12, 14: 408:11, 21 January (7] 479:23; 484:14; 486: 6. 14; S 9S: 24; 605:12 Joan (11527:6 ; job (6) 410:22: 484:12: 48S:1S; 517:9; 639:22: 671:20 Joe (61 ] 3SS:9; 358:24: 401:17; 402:1 S; 403:18. 21: 404:3, 21; 405.•9, 13. 13. 17 406:1, S, 8: 420:1; 422:4; 442:22; 457:9; 460:23 25: 496:16, 25: 498:12. 15. 17; 499:2, 7.• S36:S: S40:I1: 541:9: 549:23; 369:20; 585:19: 586:3: 597:18, 20; 598:13, 16, 23; 599:10. 19. :1. 22; 601:6, 18, 19, 24; 602:13. . 18, 19; 606:22; 617:14. 17, 18; 640:7; 656:16, 17; 661:2: 678:15: 682:14 JOHANN (3) 351:10; 197:2=: 600:12 joined (5) 409:24: 486:9; 572:4; 574:12; 661:2 joining (1) 639:18 JONES (1) jS1:2 judL. (1) 510:16 judgment (2( 307:18: 508:17 judgments (2) -t44:::: 309:3 From ignored to judgments
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tuA Mangini vs R.J. Reynolds Tobacco Lyttn Beasley, Vol Il, Confidential - S/30/97 campaign in billboards, magazines ( don't recall. and (8) newspapers, it was 30 to 60 million dgllars, (9) Q. Now, you said that's diherent than repositioning ()0) the brand. ( I I ) A. Right. (12) Q. What do you tnean by repositioning the brand? (13) A. Repositioning the brand takes into account all the (14) marketing activities you do. All - that are all around the (15) brand. It's not Just about the campaign, it's about the (16) Camel brand. A campaign Is different than the brand. (17) Q. What are the components of launching a brand? (18) MS. BIXENSTINE: Objection. (19) MR. JANECEK: Q. Or repositioning a brand? (.0) A. Of repositioning a brand? They'd be all the (21) things I talked to you about. There would be promotions, (22) there'd be in-store promotions. There's In-store point of (23) sale. There's packaging, product, the price, the - if you (24) sponsor any events. Pricing promotions. All the ones I(25) gave you yesterday. Page 370 ( I) Q. Give me your best estimate of how much money (2) R.J. Reynolds Tobacco Company spent in repositioning the (3) Camel brand. (4) A. In 1987? (5) Q. In 1987. (6) A. I don't recall the exact number, but I believe (7) that it was probably in the range of 100 to 300 million. (8) Q. Do you know if it was closer to 300 million than (9) 100 million? (t0) A. I don't recall the exact number. That's - you (11) asked me for an estimate of a range, that's what I gave you. (12) Q. So you wouldn't be surprised if it was (13) 300 million, and you wouldn't - you would be equally not (14) surprised if it was - (15) A. I told you, you asked me for an estimate of the (16) range. I'm giving you an estimate of the range:• (17) 1 believe if you ask for It, you're going to get (18) the numbers, so I don't think you need to harass me about (19) what the exact number is when I told you I can't remember. (20) Q. I'm not asking for the exact number because you (21) did tell me you can't remember. What I'm asking is. is it (22) closer to one end of the range that you gave me than the (23) other? (24) A. I don't recall the number. I Tooker & Antz (25) Q. And you don't have any belief, r_ecollection, vaQue Page 371 (1) recollection - (2) A. I don't recall the number. (3) Q. So you have no ability - (4) A. I don't recall the number. (5) MS. BIXENSTINE: Objection. You're badgering the (6) witness. If you want this infortnation. the efficient way to (7) do it would be to ask an interrogatory rather than trying to (8) ask the witness about specific numbers from 10 years ago. (9) MR. JANECEK: Q. Ms. Beasley, you would be able (!0) to determine that number in a very relatively short amount ( c 1) of time? (12) MS. BIXENSTINE: Objection. () 3) THE WITNESS: We could - we could give you - or (!4) if this - whatever the process is, we can give you what (IS) that number was. (16) MR. JANECEK: Here's the process I would propose. (17) We'll leave a blank in the deposition transcript. (18) MS. BIXENSTINE: I object to that. We're not (19) doing it. You're going to follow the normal rules. You (20) will ask the witness questions, she will give you answers to (21) the best of her recollection and truth any and accurstely, (22) which is what she's been Going. If you want to serve an (23) interrogatory, that's your prerogative and we would be happy (24) to answer it and respond to it in compliance with the (25) rules. I'm not leaving a blank in the deposition. Page 372 (1) MR. JANECEK: The normal rules. when a person most (2) knowledgeable has the information somewhere else but doesn't (3) remember it today is to leave - (4) MS. BIXENSTINE: It's confidential information. (5) MR. JANECEK: Excuse me. Let me finish, Counsel. (6) Is to leave a blank in the deposition to have that (7) information inserted in the deposition transcript. (8) MS. BIXENSTINE: It's also outside the scope of (9) the deposition notice. Let's go on. (10) MR.IANECEK: Q. So since I didn't get to finish (11) my question, and please wait until I finish my question (12) before you answer, you have - as sitting here today, you (13) have no ability to tell me whether you suspect the amount of (14) money that R.J. Reynolds Tobacco Company spent on launching (15) or repositioning the (4i•`) 392•0650 xwezrn Camel brand in 1987 is closer to (16) 300 million dollars or closer to 100 million dollars? (17) MS. BIXENSTINE: Objection to the form of the (I8) question, what she suspects. That calls for speculation. (19) It's been asked and answered. (20) THE WITNESS: I don't recall the number. (21) MR.IANECEK: Q. You have no ability? It's a yes (22) or no question. (23) MS. BIXENSTINE: Objection. (24) THE WITNESS: I don't recall the number. I gave (25) you my best estimate of the range. That is my answer. Page 373 (1) MR.IANECEK: Q. As you sit here. you have no (2) ability to tell me if it's closer to 300 or closer to 100? (3) A. I do not recall the number. I gave you my best (4) estimate of the range it was in. (5) Q. Yes or no? The question that's been asked is a (6) yes or no question. Yes or no, do you have any ability as (7) you sit here today to tell me whether the number - the (8) amount of money that was spent by Reynolds in repositioning (9) the brand was closer to 100 million dollars or closer to (10) 300 million? (11) MS. BIXENSTINE: Objection. You are badgering the (12) witness. It's been asked and answered. (13) THE WITNESS: I don't recall the number, and 1(t4) gave you my best estimate of the range it is in. (15) MR. JANECEK: Move to strikc as nonresponsive. It (16) is a yes or no question. (17) MS. BIXENSTINE: Objection. Asked and answered. (18) MR. JANECEK: Q. Do you have any ability to (19) answer a yes or no question? (20) MS. BIX£NSTINE: Objection. That's argumentative (21) and harassing. She can answer a yes or no question that can (22) be fairly and accurately responded to in a yes or no (23) manner. She has responded to your question. (24) MR.IANECEK: She's the only one that knows if (25) she's got any ability. Page 374 (1) MS. BIXENSTINE: She has responded to your (2) question. (3) MR. JANECEK: Q. Ms. Beasley, please estimate for (4) me the annual amount that Reynolds spends on • continuing the (5) repositioning with respect to the Joe Camel campaign. (6) MS. BIXENSTINE: Objection to the form of the (7) question. (8) THE WITNESS: Again. there's a difference between (9) the Joe Camel Page 369 to Page 374 51714 2197
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 r . U J TO: ALL PARTIES AND THEIR ATTORNEYS OF RECORD PLEASE TAKE NOTICE that, pursuant to California Code of Civil Procedure §2025, plaintiff Janet C. Mangini, by and through her attorneys of record shall take the oral depositions of the persons most knowledgeable at defendant R. J. Reynolds Tobacco -Company ("RJR") on the subjects specified below, at the dates and times indicated. These depositions will take place at the law offices of Milberg Weiss Bershad Hynes and Lerach, LLP, located at 222 Kearny Street, 10th Floor, San Francisco, California, 94108, before a certified court reporter authorized to administer oaths in the state of California who is present at the specified time and place. Said depositions will continue from day to day, excluding Saturdays, Sundays and holidays, until completed. DEPONENT pATE/TIME Person(s) most knowledgeable March 24, 1997 regarding the decision to 9:00 a.m. create, implement, institute, and/or use the Joe Camel Advertising campaign. Person(s) most knowledgeable March 26, 1997 regarding any instructions, 9:00 a.m policies and/or'directions to retail outlets which sell Camel cigarettes in California, including, but not limited to: (a) instructions, policies and/or directions concerning the display of Joe Camel advertisements; (b) instructions, policies and/or directions concerning the distribution of Joe Camel advertising and/or promotional materials; and (c) instructions, policies and/or directions concerning Joe Camel premium and/or give-away items. ~ ~ r ~
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t/1 A asking. Mats=int vs R.J. Reynolds Tobacco Lynn Beasley, Vol II, (22) Q. What's your estimate of the curtent promotion (23) budget for R.J. Reynolds Tobacco Company? (24) A. Ra. Reynolds Tobacco Company? (25) Q. Eacuse me. For the Camel brand. Page 390 (1) A. The promotion budget for the Camel brand. What (2) are you including In promotion? (3) Q. What do you include in promotion? (4) A. I believe I gave you the categories yesterday. (5) Q. Since you're not sure if you gave me the (6) categories yesterday. then what do you inelude in promotion? (7) A.1 did give you the categories yesterday. What do (8) you mean, l'm notsure? (9) Q. Then why are you asking me what's included in (10) promotion? (11) A. I know what I include in It. You asked me the (12) question how much on promotion. I wanted to know what you (13) were defining as promotion. (ta) Q. I'm not. I'm using your terms. (1S) A. All right. So we're using the term I used (16) yesterday as a promotion. Is that correct? (17) Q. We're using your understanding of what promotion (18) is, yes. (19) A. And your question on it is? (20) Q. What is your best estimate of the current budget (21) for promoting the Camel brand? (22) A. I'm going to say, !tt's see, all promotion? (23) Probably about 1S0 to 200 million. (2s) Q. What's your best estimate for the market - for (25) the budget, current budget of marketing the Camel brand? Page 391 (1) A. Let's see. Thls year, I would say it's probably (2) around 300 and - weli, let's see, probably 300 - best (3) estimate, around 360. (4) Q. 360 million? (5) A. Yes. (6) Q. With respect to budget for promoting the Camel (7) brand - (8) A. Um-hmm. Yes. (9) Q. - as you sit here today can you tell me if you (10) suspect the number is closer to ISO million or closer to (11) 200 million? (12) A. I don't know. I haven't looked at it. I haven't (13) studied the detailed category breaks, and I didn't sit down (14) and study that. I just don't remember. (IS) Q. Are budgets reviewed quarterly . at Reynolds? Tooker & Antz (16) A. Reviewed by who? (17) Q. Reviewed by you. (IS) A. I review the budgets monthly. (19) Q. And when do you typically do that? (20) A. What do you mean, when do I typically do that? (21) Q. The first of the month? 15th of month? Itjust(22)depends? (23) A. Um-hmm. (24) Q. Is that yes? (25) A. It depends. Page 392 --`~ (1) Q. So you're about due to review the budget again. (2) then? (3) A. No. It Just depends. I don't know. I looked at (4) it last month. I don't know, it's - it just depends. (3) Q. Now, the budget you're reviewing, does it also (6) include actual spending? (7) A. It - usually, we Include an estimate of year to (1) date spending. (9) Q. Give me your best estimate of the current year to (10) date spending for the media portion of the Camel brand. (l l) MS. BIXENSTINE: Objection. Asked and answered (12) yesterday. (13) THE WITNESS: I don't know. I haven't looked. 1(14) have not looked at what it actually was. (13) My best estimate would be that we're getting close (16) to halfway througfi the year, so we're probably getting elose (17) to halfway through the budget. (18) MR. JANECEK: Q. So you're estimating the amount (19) that was actually spent based on the budget amount? (20) A. Right. (21) Q. You don't recall having seen an actual year to (22) date figure? (23) A. No, I didn't say I didn't - I said I didn't (24) recall the actual year to date figure. I don't recall it. (25) Q. Give me your best estimate based on your Page 393 (1) recollection of the actual numbers as opposed to just (2) splitting the budget. (3) A. I don't know. I don't recall. (4) Q. You can't give me an estimate? (5) A. No, I cannot. (6) Q. What about current spending on promotion? (7) A. Are you asking me a question? (8) Q. Yes. (9) A. What is the question? (10) Q. What is your best estimate on current spending, (11) year to date spending on promotion? (12) A. I don't know what actual year (414) 392-0650 Confidential - S/30/97 X„A„Xrn to date spending Is. (13) Q. And you have no ability to estimate - (14) A. I cannot estimate that. (15) Q. Give me your best estimate on year to date (16) marketing for the brand. (17) MS. BIXENSTINE: Frank, on marketing, you're (18) including everything? The media placement and the (19) promotion? I just want it to be _ clear. (20) MR. JANECEK: I'm using her definitions. (21) THE WITNESS: What was your question? (22) MR. JANECEK: Q. The year to date spending on the (23) marketing of the Camel brand. (24) A. My best estimate would be we're about close to (25) halfway through the year, it would be close to halfway Page 394 (1) spent. (2) Q. So again you're basing your estimate on - on (3) dividing the budget estimate you provided me in half? (4) A. Right. Yes. (5) Q. You don't have any understanding on the actual (6) year to date whether you've met that budget? (7) A. I did not say that. I said I don't recall what (8) year to date spending is. You asked me for a best estimate, (9)1 gave you one. (10) Q. Do you believe the budget - that the actual (11) spending has corresponded to the proposed budget from the (12) beginning of the year? (13) A. I don't know what you mean by corresponded. (14) Q. Has the actual spending been more or less than was (13) projected? (16) A. We don't spend more.than we have in the budget. (17) Now, on a program-by-program basis, how much we spend (18) changes significantly each month by what program we want to (19) put more money behind, what program we want to put less (20) money behind, what our competition is doing, what new (21) opportunities we've identified, what things we've found out (22) are working, what things we haven't. That changes literally (23) every month. (24) Q. But the budget doesn't increase? (25) A. Not unless we - it can. Sometimes the budget Page 395 (1) goes up, sometimes it goes down. But not because we (2) randomly overspent it. Page 389 to Page 395 51714 2199
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NEMEROVSKI CANADY FALK & RABKIN A PrvJestiorial cc~poratton THREE FMBARCADERO CENTEtt SEVENi}1 FLbOR SAN FRANCISCO, Ci1 94111-065 7EiFPHONE 41S/434-1600 FACSIMIiF 413/399•3041 June 4, 1997 VIA FEDERAL EXPRESS Ms. Joan Radigan Jones, Day, Reavis & Pogue 901 Lakeside Avenue, North Point Cleveland, Ohio 44114-1190 Re: Mangini v. R. J. Reynolds Tobacco Co. Dear joan: DnwT.pa o+ARM P otTMma MADnOK c Jau" , HOWARD H. NLMRtDVfIQ lTUART S. UPTON 1GtlaJ. oILSOY UOGRD V. CA.WDY GARYl. R•VMN M7Q1A T )ON,l`.-1 1nwMa s. rux IR Ad1Dtt V. ffaL.3Tu rAMS3A K. fUTAQR L,VRE14CE aAA1IM MAXMA K GOODM• MAnHr. F em• RAYMOND t. HMS ROlOtT t GGGD(NG.1R• CNAJIlO,'RZ M. SAXON T1MCINY S. McCMIN RO3LNARYS.TAALTOY 371POW+1. DetGSSt MARTW !. GUdC Sl1LW L NFi1tR tALl A tQNLR STMN L MAYLR IAM A. ND(ON tAt,t a HUDSON 1AN03 {. LGKs BLRNARD A. &URK DAVm McGOOAN DIRK M. S6fLNUKAN LAL1tLVQ F. PULGR&4 MINZTH D. LlAAYS THGMAI A. LARSEN sTNA,v S: SQIUwAv GARY M. WLAN STLV[N c SCHGH DONALD 3. Spi[RIA DOl'OLIt A. V1nT111Oe IDZMr[TH G. HAtlSMAN LIlYN K M?ARUf MATR/LW1. JAGG6f DONALD F. MIIiS TODD 4 THOMKON DA..ltl s. ASIMOW !L 1D60H 1iCHLR III M. M1RIW TNAY[R CAJtY S. ROlN[Tf GLLlQT R fOtOTA VIIlU.V C ROO6NDGC PETER 1• vim BARRY A. AlsOTT aAR1.uA A. tINT[IlS AT.T^MARic [llll{AA.Sr t3JwcTf1 S. fALVtsGN MUUN[ I. CotAmD[ PETER M. 0. WONG H. MATMO MOOOI = ~ L Al SLMOH 1. rMNKit Psful. Busa J .L RTY ANNA MAR![ ARMITROHG RONALD H. STAR „ DAV7D M MfDD6Lll DANtaJ. v7NmIQ fA ROGCRS STEWART K VIlliCR}} PAY t. MDRtSAP lDHn t oawoaT MARY L rLRw /WJ ~c D. ~~ ~ c Ti1 ~ ~ARD WKY LVC N SNMIRG uou.D 0. DDarruG ~ D~uGOBs MMLR! L HURfT ~~ ~ 1WJItit M. S"AtT ~ ~.LwcxwAN QK F. DAMOM . Z1IUKTN o. SCGTT JosE A. csrivn DAPIhY M. OIO(: eMMRA L s+rtnt wuY J. Mcu.Arr M KGOADOW MORR13 IaSON PANNE w Y z. ~Q MIMADA H. MoGO. ', •- So Z!', ~, O , oJtar • Va.r HLVRY.. HOWARD ROlQT Il. NItt3GY un'DA A. MARRY STLVLH L SWIG •..rwr r brr.. t.yb+" rA..r«rwsnm " Afrr/ «Atw IYN sorr8..w G".n"a No NEWPORT QNitJt DR1K fUITT 450 NEROtT.uas CA 976"ls TeWNDNt 1tVml90o FACSIMILZ 1Wm49t0 I am enclosing a disk and a condensed transcript for the first day of Lynn .Beasley's deposition. At Pam Johann's request, I am also enclosing a copy of the interrogatories we served last week. Very truly yours, law Offica Oj r~, , ~~`~HOWARD ' ~~ RICE B. J~Y GRESHAM Legal Assistant BJG:gmp . 060497, f•397048:a101131l3+1531
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DF[`T.3MTT_AN OF SERVICE BY FEDERAL EXPRESS 2 3 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I, the undersigned, declare: 1. That declarant is and was, at all times herein mentioned, a citizen of the United States and a resident of the County of San Diego, over the age of 18.years, and not a party to or interested in the within actionr that declarant's business 'address is 600 West Broadway, Suite 1800, San Diego, California 92101. 2. That on February 28, 1997, declarant caused true copies of NOTICE OF DEPOSITION OF PERSONS MOST KNOWLEDGEABLE AT R.J. REYNOLDS TOBACCO COMPANY to be delivered to Federal Express for service on each of the parties listed on the attached Service List on March 3,*1997. I declare under penalty of perjury that the foregoing is true and correct. Executed this 28th day of February, 1997, at San Diego, California. N N m
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ou Personts) most-knowledgeable regarding the Roper Study conducted in November 1993. Person(s) most knowledgeable regarding an entity known as the NFO Research Inc. and/or any of its affiliates. Person(s) most knowledgeable regarding the Atlanta Sales Managers Meeting held in January of 1990. DATED: February 28, 1997 L.j CAMEVRC03337.N07 5 J May 13, 1997 9:00 a.m. May 14, 1997 9:00 a.m. June 15, 1997 9:00 a.m. ' MILBERG WEISS BERSHAD HYNES & LERACH LLP WILLIAM S. LERACH PATRICK J. COUGHLIN ALAN M. MANSFIELD RANDI D. BANDMAN FRANK J. JANECEK, JR. J JANECE JR 600 West Broadway, Suite 1800 San Diego, CA 92101 Telephone: 619/231-1058 BUSHNELL, CAPLAN & FIELDING, LLP ALAN M. CAPLAN PHILIP-NEUMARK 221 Pine Street, Suite 600 San Francisco, CA 94104-2715 Telephone: 415/217-3800 Attorneys for Plaintiff
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.sv...a ~vsu. ..~rs..v....-v, . • 'Ser•~ice List - 07/12/96 ~ Page 1 COUNSEL FOR PLAINTIFF(S) Alan M. Caplan Philip Neumark BUSHNELL, CAPLAN & FIELDING, LLP 221 Pine Street, Suite 600 San Francisco, CA 94104-2715 415/217-3800 415/217-3820 (fax) COUNSEL FOR DEFENDANTS Kim F. Bixentine William T. Plesec JONES, DAY; REAVIS & POGUE 901 Lakeside Avenue, North Point Cleveland, OH 44114 216/586-3939 216/579-0212 (fax) H. Joseph Escher III Pamela T. Johann HOWARD, RICE, NEMEROVSRI, CANADY,.FALK & RABRIN Three Embarcadero Center 7th Floor San Francisco, CA 94111-4065 415/434-1600 415/399-3041 (fax) *
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51714 2214 I
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Um s,..M AWa.. tapes (1) 603:25 TAPS 111445:21 tar (1] 402.•10 Target 13) 490:8: 547:9; 616:17 ManBiN .. R.J. Reynolds Tobacco target (31) 461:1: 486:10; test(tkd (21] 158:19; 401:16; 403:23: 410:2t 448:2; 454:16, 22: 488.•23: 492:20: 501:4, 6: 507:1: 511:11: 319:23: 521:2; S28:S: 548:18: 592:4. 19; 668:25r 680:14 490:3: 492:11; 493:4, 12: 494: 9: 499:1; 521:3. 7.• S2S:7, 10, 21; 346:17,• f47.•7,10; S 51:19; 606:11; 616:10: testify (S) 352:16: 435:2: 476.•2S: Sj6:9: 669:3 test(fying (6) 358:22; 407:23; 472:5: SS6:9; SS8:13t 602:22 628:24: 679:2; 6 83: 10, 12, 24,• TF.SMtONY 1391339:22: 684:11. 19, 21: 685 :7, 19: 360:2:361:2; 362:2; 363:2: 686:1 364:2; 363:2: 366:2r 367.•2; targeted (4) 492: 21; 491:d; 368:2: 369:2: 370:2; 371:2; 547:14: 617:9 372:2; 373:2: 374:2; 375:2; targeting (2) 494 :8: 547.•8 376:2; .177••2; 378:2; 379:2; taste (6) 436:13, 25. 437•2. 4: 380:2: 981:2: 382:2: J83:2: 481:17,• 677.•8 384: 2: 38S.2. 386: 2: 387.2. taxes (1) 415:4 388:2: 389:2; 390:2: teacher (1) 469:2 5 391:2t 392:2: 393:2; 394:2: Teague (341644: 11: 645:9, 393:2; 396:2; 397:2 17•• 646:8. 9, 22: 648:7, 12, 17,• Testimony (S) 508:14; 649:6, 13, 24; 650:2: 653:13, 311: 20: 626: 24: 633:1: 636: 9 22;654:1,10,14,17,21: 6SS:1. 7. 10. 13, 16; 6J6:1, 3, 11. 20, 23: 657:3, 14. 15. 22; 658:20, 22, 23, 24, 25; 659:8; 663:10, 18, 23: 671:23r 672:0• 673:23: 674:23; 675:8; 676:24; 677:2, 3, 11 team (1) 483:7 technically [1] 430:5 technology (1) 615:13 teen (4) 479:j; 665:3, 18; 676:18 Teenage (2) 467:6: 468:9 teenage (1) 666:22 teenager (2] 665:8• 22 Teenagers (1) 469:21 teenagers i7) 469:15: 499:20: 666:11: 667:3, 6, 23; 668:4 teens (S1 664:20, 24; 667:14, :1• 23 televised (1) 497:11 television (1) 497:10 telling (11) 437:4: 441:20; 460:1: 466:18, 21: S6S:7•• 602:1 S: 661:19, 23: 672:24: 683:16 tells (21 640:16. 17 Ten (1) 471:1 tend (1) 612:4 tended (1] 601:15 tendency (e) 473:9 tens (1) 671:3 tenure (2) 574:2, 3 term (35) 357:10: 419:12, 13, 15: 481: 8, 20; 493: 8; S24••6, 10• 13, 16: 525:8, 9: SS4:13; SS6:11: SS72: 562:16: 564:4, 9: 565:1; 570:25: 582:9, 20, 25; 584:21: S9S:2; 599:20: 607:1 S: 612: 24: 613:12, 19; 614:18, 19; 664:24 terms (12] 416:25; 431:2; 448:18: 462:13: 475: ! 6; 512:11; S2S:8: 558:12; SS9:14; 571:7,• 373:24 test (6) 401:6, 8. 13: 402:18: 624:11, 12 tested (2) 402:9: 615:24 Tooker & Antz testimony (19) 399:2: 410:1; 423:15; 483:8: 508:2: 520:1, 20: 523:4: 536:13; 591:24,• 598:20; 643:St 6S6:2S: 657.•18,• 667•18: 673:20; 683:20; 688.•6, 11 testing (1) 602:21 texts (1) 622:15 Thank (18) 4Sj:S: 456.21: 467.•8: 468: 20,• 470.4. 473: 22: 477.•4; 479:6; 496:15: S02r8; 503:23; 508:21: 510:16: 513:22: 514:12; 547:11; 669.•6,• 682:24 theme (2) S9S:J1: 596:12 themes (2) S9S:8. 9 They'd (1) jS6:9 they'd [7) 353:8, 19; 330:14, 16, 25, 651:1 S, 16 They'll (11529:21 they'll 131357.•23; 437.•14; 686:11. They're (14) 403:24: 418:16: 430:2: 481:15: 496:14: 547.•2: SS4:18; 607.•2S; 610:1: 620:14, 15; 628:18; 67'7.'13 they're (S0) 402:12; 405:4, 8; 406:1, 7, 12: 425:8, 13: 430:6; 437-•19,• 439: 8; 440: 6: 471:11: 499:18; 524:20,• 526:13; 528:16; 529:1, 3.18. 23: 530:1, 2, 20; 544:21: 346:7, 9: 549:7; SS1:2, 3, 4; SS2:22; SS6:1•7,• JS7••13; SS8:1S, 22: 562:8: 370:1; 371:7; 582:4: 610:1, 19: 619:24; 620:5. 6. 17; 634:7; 649:6; 632:14; 657:23 they've (101401:12t 418:2; 440:16, 21, 22; 449:23; 530:13; 650:1 S; 667.•2 thinking (S) 413:151473:25: 552:23; 670:19 third (111 N39, 12: 469:12: 503:8: SS4:11; 600:22, 23. 24: 637.•24: 642:16 third-party (2) 637.•1S; 638:11 Thoughts (1) 474:25 Lyna Beas(ey, Vol. lI • 5/30/97 c.e...o,„ thoughts (2) 477.•1; 488:17 ' thousands (7) 437:17,• 668:18, 20,• 669:8; 670:12: 671:4 Three (4) 351:8; 424:22: 514:3: 327.9 three (32) 399:14: 424:22: 425:14: 431:1, 4; 440:16: 441:1 S; 442:3; 450:3; 486:13: 495:4; 501:9, 10; 524:7, 17,• 527.•17,• S4J:14, 1 S: SS0:24. 25; S97•11, 12: 399:16, 17,• 633:11; 6IS:10; 653:19: 660:10, 12. 20,• 668:11 throw (1) 592:21 thrown (1) 591:18 thumb (1) 476:16 Tide (1) 434:6 TLaes (1) 601:12 titaes (14) 418:7,• 423:23; 427.•20,• 432:21 t 501:7, 9; 517.•1: 5279. 18: 572:2; 581:7,• 634:9 timing (1] 490:6 tip 121426:17, 18 tired (1) 653:3 title (38) 417.•3; 428:3: 432:10, 11. 20; 464:8, 11; 468:8; 472:10, 12: 474:24,• 477.•2; 480:13, 24; 484:12; 489:22: Sl6:9; S17•20; S2S:1; S48:S: 561:21:562:13;568:10;376:3, 4. 6.18. 586:24: 587:4; 593: 24: 396: 9: 608: 6, 16: 615.9. 644:23; 645:1, S; 682:8 tided ([) 490:8 titles (4) 432:25: 362:10, 12; 608:9 Tobacco (34) 3S1:S. 11; 3SS:11; 338:23; 407:22: 464:1; 465:3; 466:3: 468:13; 318:16; 519:6. 13, 15, 24; S20:S; 521:18: 524:1 S; 562:17,• 564:21; 576:12, 16; 579:1: 580:14; 592:13, 14: 614:20; 637.•20; 639:18; 641:2, 4, 6: 642r9; 663:11: 671:1 tobacco (3) 448:13, 14; 466:14 tool (4) 678:11, 13: 684:8 toothpaste (1) 433:23 topic M 416:10: SS4:6; 615:1: 623:16; 656:16: 670:12: 680:10 topics (2) j99:17; 414:23 Total(1)401:6 total (9) 402:18, 23; 427:10: 458:12, 19; 439:10; 539:7,• 542:17,• 543:5 totally (2) 451:7,• 606:13 touch (t) 475:18 towards (6) 448:23: 469:4; 475:11; 594:18; 616:3; 685:18 TPT(2)401:3.5 tra ck (101336:16; 358:14; 520:13, 14, 21, 22; 540.15. 24; 632:24; 639:8 Tracker (9) 639:9, 13, 14. 16, 17. 20, 21: 640.•6, 9 tracking (61520:22, 2S: (4 92-0630 521:19: SS1: 20: 639:24: 640:5 tracks (1) 639:22 trade (4) 507:4, 15: 598.•8: S99:S transcendini (1) 498:22 transcends (1) 497:25 transcript (1) 513:24 translate (21627:24: 628:1 traveling (t) 661:21 Tredennick (17) 64j:21: 662:9, 19; 663:2, S: 669:20: • 6 71:13, 19. 21: 6 72: 4. 25: 675:4, 11: 676:8,17.• 677:7. 12 tremendous (2) 332:3; 592.'9 tread (7) 448:23: t1S0:14.• 451.•9; 4SS:7,• 462:14: 476:14 trends (6) 445:13; 475:13: 476:12; S3S: 6: 612: 8: 6 S 9:12 trigger (1) 555:7 . Trone (1) 601:20 true (33) 418:5: 423:2: 439:3: 443:24, 2S: 447:1 S; 4.t8: !. 13: 449:3; 432:2, 8. 24; 459:10: 457.•8: 458:19: 459:1 S: 460:23; 461:7, 11: 462:1; 464:18; 465:1; 489:3, 4; 494•4, 21; 49S:S, 12. 20. 23: 496:16: 497:9; 498:5. 7,• 499:8. 12. 14. 1S. 25: 500:7, 9, 10. 12: 526:12; 547:6;532:12:SS9:17;373:17; 383:5; 398:2; 645:21: 677:25 truth (2) 408:8: 452:7 truthfully (1) 352:16 Tuesday (2) 439:14• 16 tumultuous (2) 666:23. 24 turmoil (1) 666:22 turning (1) 420:3. TV (1) 424:24 Type 111583:25 ' type (33) 3SS:S; 482:13: 507:3; S1S:18• 22', 23: S16••1• 3.6,8;517:10:518:12:519:9. !1: S42:S; 547.•S: SS2:17•• 379:22: 580:20, 24: 581:1 • 22; 583:19. 23: 584:10: 586: 22. 24; 587.•Sr 608:7•• 624:5: 625:19; 639:4; 643:18: 667:1 Typed (1) 519:1 typed (1) 518:25 types (8) 358:17; 475:10: 516:15: 517:14: 524:1: 541:18: 608:2; 613:5 typeset (1) 519:1 typical 111518:14 typically (5) 408:1; 434:2: 517:11; 581:2: 587:17 typo (1] 616:9 -U- U.S. (S) 443:13, 16. :S: 446:6, 9 Ultimately (1) 492:2 ultimately (I) 491:25 Um-hmm (23) 353::1. :4; 40! : 4; 402: 2: 42 6:1: 417.• 8. 14: 461:25; 470: 4: 481: 9: 489: 2: 490:18: S26:S: 534.•7: 538:20: 339:24: 543:19; 544:1: 550:16: 5 • :1 S: 599:18: 611:13: From tapes to Um-hmm 51714 2189
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2 3 4 5 6 7 8 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 M Person(s) most knowledgeable April 30, 1997 regarding the market share of 9:00 a.m. Camel cigarettes with respect to underage purchasers in California, including, but not limited to: (a) number of Camel cigarettes sold in California; (b) the number of Camel cigarettes sold in California's major metropolitan areas; (c) the market share-of Camel cigarettes in California; (d) the market share of Camel cigarettes in California's major metropolitan areas; (e) the volume of Camel cigarettes sold in California; (f) the volume of Camel cigarettes sold in California's major metropolitan areas; and (g) the number of Camel cigarettes sold to underage persons in - California. Person(s) most knowledgeable May 5, 1997 regarding the amount of taxes 9:00 a.m. paid to California attributable to the sale of Camel cigarettes, including, but not limited to: (a) sales taxes; (b) income taxes; and (c) excise taxes. Person(s) most knowledgeable May 7, 1997 regarding distributors of 9:00 a.m. Camel cigarettes in California, including, but not limited to: (a) their identity; and (b) the identity of the volume of Camel cigarettes provided to each distributor. Person(s) most knowledgeable May 9, 1997 regarding RJR's Consumer 9:00 a.m. Tracking System and/or RJRT Tracker. Person(s) most knowledgeable May 12, 1997 regarding the "youth target 9:00 a.m. studies" conducted by the Creative Research Group. - 4 -
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We in~ NMauM quantltied (1) 357:13 quantify 12) 533:4. 8 quuultatirely (11402.1 Kant(ni v. R.J. Reynolds Tobacco Questioo 13) 509:11; S1I:21; 585:8 quest(on (134) 358:8: 417.•18: 418:21;419:3:429:8;431:8: 454.•10: 4.3'5:11, 25; 438:3, 8: 439:12; 440:13; 442:11, 14. 17, 18, 19; 444:25; 448:17; 4S! :10: 452:12. 23: 454: 2; 456:9, 17: 457.•15, 20. 21; 459:21: 466:10; 476:12: 477:12. 20; 483:21, 24; 484:4: 486:4. 17, 24; 492:24; 496:20: 498:14. 19; 499:11; 500:2, 3; 504:11, 20, 21: 505:1; 310:20: 311:14; 315:13: 522:18: 323:14, 16. 17; 527:24: 329:10, 23; 530:18: 531:2; 534:14, 17, 18, :0: 537:20; $4S:19; 573:19, 20; 574:16; 579:4: 580:17, 23; 583:10; 585:2. S, 7; S90:S, 23: 592:1, 2. 18, 19; 596:23: 600:18; 601:22. 23; 608:11; 610:7. 12: 611:3: 614:15, 17; 618:13; 624:4, 9:625:10,17; 626:18, 21, 23: 628:12: 633:16: 635:2. 3. 12. 13. 19. 20; 636:2, 6, 16, 17. 20; 639:3: 643:3, 12; 664:10; 666:3; 667:12, 17. 19; 669:5. 12, 17. 18, 19; 685:1 questioned (2) 408:21; 465:18 questioning (1) 465:19 questions (20) 359:11; J98:11: 400.•2, 10; 408.•10, 13, 19: 409:17: 411:10; 468: !: 501:18: 508:21: Sl •1:2; SS6:9: 371:15; 592:3; 607:10: 614:13; 649:22; 688:2 quick (3) 470:2: 514.•17,• 683:4 quickly (2) 466:10; 682:22 q uit (31449:24, 25, 450: 7 quitters (1) 467:7 quitting (1) 454:10 quote [I] 674:19 quoted (1) 531:19 quoting (1) 674:21 -R- R.C. (11475:2 RJ. (42) 351:5, 11; 33J:11: 358:23: 410:6; 456:12, 22. 2S; 458:13: 462:23; 464:1; <66:5, 12. 13, 15, 16. 20; 468:13; 518:16: 519:6. 13, 14, 24: S20:S; 521:18: 524:15; 362:17,• 564:21; 568:18; 576:12, 15. 579:1; 580:14; 592:12, 14; 610:18: 614:20; 637:20; 639:18: 642:8: 663:11; 671:1 RAl. (1) 502:10 R.T. (1) 488:24 RABKIN (1) 351:8 race (2) 497:1, 9 Tooker & Antz races C21497••7, 11 raises (1) 476:11 nn (8149618, 22. 22: J42:1r 605:11, 12: 606:18: 607:1 Randy (4) 407••20; 432:3t 473:23: 474:7 range (2) .f38:2S; 414:22 ranks (3) 452:16; 614:6, 10 rate (3) 438:12; 609:13; 621:20 rational (2) 509:3; 650.9 rationale (1) 490:6 RE(1)468:7 re-ask (2) 339:13: 669:18. Reach (1) 496:13 reach (141422.8. 11, 23, 494:10; 495:6, 7. 8. 496:1, S: 499.4. 7. 24, 25. 643:12 reaches (3) 496:11: 499:l; 500:11 react (S) 422:2; 623:20,• 625:23; 628:11: 654:7 reactlon (3) $9S:11; 6S1:10; 682:17 Read (3) 472:21; 647•23 read (144) j33:14; 402:6: 40j:3; 413:6; 416:14; 445:7: 450: 20: 454:19; 464: 7, 10; 468:21: 469:7, 12, 20,• 470:23t 471:8, 9. 12; 472:19; 473:24: 475:7. 9; 476:7. 9. 21, 22. 23; 477.•2, 15, 17,• 478:16t 47D:21: 480:23; 482:16; 486:23; 487.•3: 489:22, 2S; 490:8; 491:1; 499:21; 503:10: 508:4, 7, 12. 14; 511:14, 20; 513:24; 515:13: 525:3; 538:24; 539:6, 9; 543:20, 21, 23; 543:11; 550:10: 551:8; SS2:2, 3; 553:25; 554:7; 555:2; SS7:S, 15.20; 362:22, 23, 24; 563:16; 367:13, 21: 369:9, 11; 373:12; 379:6; 583:6, 8; $93:24; 595:7; 596:6, 10, 24; 608:15; 610:16; 623:3: 623:8, 12, 14, 21, 22, 24; 626:6, 7, 11, 21, 24; 627:4. 10; 628:10; 632:25; 633:1: 635:20, 23; 636:9, 18; 641:22; 642:4; 644:13; 645:3, 20, 22, 23: 647:14,13, 16, 17, 18, 20; 648:16, 24; 649:5, 10, 12, 23; 653:1, 9; 657:6, 23, 25: 659:4, S; 663:25; 664:22: 670:5; 673:15; 674:19; 683:7; 684:11 reading (13) 403:91469:1: 490:19: J24:4; J47.•20: 560:9;, 609:17,• 648:4; 657.•8: 674:15, 16: 675:14; 683:2 reads (1) 497.•21 real (9) 437:18; 440:4; 514:17,• S17••18; 626:14; 650:5; 666:16; 683:4 reaUze (1) 426:23 reason (18) 3S2:1S: 454:8: 473:23; 476:19; 478:20; 494:20; 502:7,• 511:6: 534:12; SS9:18; 634:14; 654.•6: 668:12; 670:17,• 671:12; 674: 24; Lynn Beesley, Vo(. 11 - S/30/97_ c„vOM ,,,,,,4,,,,,, 676:19; 677:18 Reasons (1) 668:8 reasotn (29) 418:11; 439:13, 23: 430:3, 8; 473:3, 4; 621:1; 631:25: 632:8. 10. 20.• 633:2: 634:1. S, 7.• 649:2; 650:4, 9; 669:11, 21, 24. 25. 670.•6: 674:7, 10; 675:1, 22; 676:4 REAVIS (1) 351:2 rebel (4) 664:7,• 675:12; 676.4. 10 rebeU (2) 667••3; 676.9 rebelling (2) 667:1. 7 rebeWous (13) 630:11; 664:20, 24; 665:4, 8. 10: 666:10, 19; 667.•14, 21, 23, 24: 668.4 RebeUbumeas (11664:14 rebeUbttsmea (2) 666:8. 9 recall (30) 358:20,• 405:23; 4069; 408:20; 410:1; 411.9; 412:15. 23; 413:4, 23; 414:1, 7. 8. 14; 415:20, 21, 23, 24; 416:4; 506:6, 1 S, 17. 20: 513:4, 10,• 517.•8; 518:13r 542:22: 354:2, 3: SS8:3; 569:3; S7S:2; 578:1, 4; S8S:24; 586:2; 618:23; 623:13, 17, 19; 664:4; 670:20, 21,22,23,25;672:7 recetved (7) 400:4; 414:13; 469:21. 23: 513.9. 596:11 t 640.9 receives (1) 606:2 rece(v(ng (1) 595:14 Recent (1) 402:3 recent (3) 523:1: 393:17.• 638:5 Recently (1) 619:2 recently (S) 44S:1S; 618:25: 638:4; 644:18; 649:11 receas (9) 398:6: 438:23; 470:8; 479:14; 512:19; 514.•21; 577.9: 604:4; 652:23 recognized (11568:25 recognizing (I) 491:12 recoUection (S) 404:20, 24; S3S:12; 591:2: 611:4 recommendation (23 490:21: 491:7 recorttmendations (1) 490:1 recommended (2) 491:3, 4 reconvene (1) 687:22 record (74) jS2:2; 398:4, 7, !0; 399:1: 402:7,• 407:2, 3. S, 6, 8, 9,12.13.17. • 408:2, 14. 23; 417.•14; 423:21; 438:22. 24; 454:18: 463:6, 8. 10, 11; 465:10, 11, 13, 14; 467.•19. 20. 22, 23: 470.•6, 9. 17• 474:10, 16. 17, 19, 20; 479:11. 12. 13; 481:3; 482:17: 499:22: 508:7; 510:10: 512:18. 20; 513:10, 20: 514:19, 24; 548:4; SS7~F: 577:7. 10, 16, 19; 584:4; 595:22; 596:6; 604:2, S; 652:21. 24; 683:7; 687:23; 688:10 reexamine (1) 513:12 refer (6) 477:12; S2S:2S; 370:4: 571:2, 3: 620:4 (41S) 92-0tiSO reference (t) 564:17 referenced (5) 417:14: t72:4: 549: 2S: 564: 24: 6'20:16 references (2) 478:11; 490:: referencing (i) 594:10 referTed (1) 617:19 referring (4) 471:10; 504:16: 620:11; 662:8 refers (1) 618:7 ! refining (1) 403:8' reflect (l0) 4lS:22; 4j6:21: 437••10: 451: 22: 483:1: 484: 4: 491:4; 306:1: S7'7.•19; 579:24 reflected (2) S2S:18: 593:1 reflective (1) 481:23 reflects (1) 611:14 refocusing [1) 617:4 refresh (2) 404:24: 591:2 refreshes (1) 404:20 Reg (1) 503:5 regard (2) 642:1: 662:10 Regarding (2) 464:12: 470:25 regarding (3) 409:17,• 664:10: 688:4 regardless (3) 399:8: 530:20. 22 regimen (1) 414:16 regularly (3) 429:14; S26:IS• 17 reinforce (2) 408.•6; 544:11 reinforcing (1) 416:12 re(ns (1) 433:11 relate (1) 475:21 related (6) 504:3, 8; 505:12: 566:23; 623:1 j; 632:16 relationship (1) 641:6 relative (4) S2S:7,• 569:18: 584:21; 658:22 relatively (1) 671:2 relevant (71491:6• 10: 628: 2S: 629:18: 679:6: 684: 2: 687: 4 remarkable (2) 457.•8; 503:13 Remember 141 S3j:17. 22: 586:13; 670:7 remember (S 11338:21. 2S: 403:22; 412:8: 413:2; 432:24: 483:5; 504:12: 506:18. 19: S15:17,• S3S: 9, 11: S4j:20: SS7.•1, 3: 564:11; 568:7. 22: 572:14, 16, 22. 24. 25: 374:11: 576:6; 577:24: 581:21; SSu:7, 8. 10; 587:14, 25: 591:1: 594:9; 604:14: 605:13: 612: 18; 639:12• 13. 15. 19; 646:1. 6. 7; 661:13: 670:19, 24; 681:25; 683:2 remind (3) 352:12: 428:2: 630:14 ' remotely (t) 635:10 render (4) 444:22; 50717: 508:17,• 656:5 , renewal (2) 47j:Sr 485:23 repeat (6) 409:17: 635:19; 636:4, 1S. 19: 664:13 repeated (2) 500:25: 636:17 Repeatedly (11686:7 repeatedly (1) 511:7 replace (1) 594:20 replete (I) 420:18 Report (2) 472:11: 568:13 report (261428:7• ll. 130:1. From quantified io Report 51714 2187
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BSA Mangliki v. R.J. ReZnolds Tobacco Lynn Beasley, Vol. II- 5/30/97 about a Wittston Franchise smoker, it's an (17) adult smoker who smokes Winston. . (l8) Q. What's a competitive smoker? (19) A. Someone who smokes another brand other than the (20) one you're talking about. ;:1) Q. Can you turn to - and this one's not numbered, so (22) we'll use the ones on :;te side. 189. See those numbers on (23) the side up there? (24) A. Yes. (25) Q. We talked a little bit about some of the plans Page 579 (t) that R.J. Reynolds Tobacco Company uses. What does this (2) look like to you? (3) MS. BIXENSTINE: Objection to the form of the (4) question. (5) THE WITNESS: I will - you know, if you want me (6) to - I need to read the document ifiyou want me to tell you (7) what I think this is. (8) MR. JANECEK: Q. Okay. Yes. (9) A. All 'right. (t0) Q. What do you think this is? (11) A. It looks like It's promotioni that were planned to (l2) run in 1991. (13) Q. So this would be a promotional plan? What would (14) this - what would this be? (15) A. It looks like that. (16) Q. If you could turn back to the page that I(17) originally directed your attention to, the 189. (18) A. Yes. (19) Q. When you say it looks like a promotional plan, do (20) you mean this particular page? Or the entire document? (21) A. This page. (::) Q. So this is the type of information Reynolds would (23) keep with respect to - well, strike that. (24) Would this be something that would reflect events (25) that had occurred, or events that were proposed to occur? Page 580 (1) A. It looks like proposed to occur. , Q. Was it Reynolds' practice to create plans that (3) would be forw•ard-looking so you could see how - where you (4) were going to be. what needed to be done throughout a given (5) year? (6) A. Yes. (7) Q. What about the other way? Did Reynolds also (8) create documents similar to the budgets we were talking (9) about, the year to date, so that you could see where you (10) had - you know, what part of your plan you had accomplished? (11) A. No, not necessarily. (12) Q. Ms. Beasley, this looks to me like actually a (13) fairly sparse plan. Do you think this was the entire (14) promotional plan for R.J. Reynolds Tobacco Company with (15) respect to Camel on - during 1991? (16) MS. BIXENSTINE: Objection to the predicate in the (17) question. (18) THE WITNESS: This could have been the complete (19) 1991 promotion plan. It looks like it. (20) MR. JANECEK: Q. So that's the type of thing that (21) would - that you would have? (22) MS. BIXENSTINE: Objection to the form of the (23) question. (24) THE WITNESS: What do you mean, it's the type of (25) thing I would have'! Page 581 (1) MR. JANECEK: Q. This is the type - this is what (2) a plan would typically look like? (3) A. Oh. (4) MS. BIXENSTINE: Objection. A ' promotion plan? (5) MR. JANECEK: A Promotion plan. (6) THE WITNESS: It could be. Different brands use (7) different formtits at different times. This is one person's (8) format. (9) MR. JANECEK: Q. Well, you were overseeing Camel (10) in 1991, weren't you? (11) MS. BIXENSTINE: No. (12) THE WITNESS: No. (13) MR. JANECEK: Q. You weni to Winston by that (14) time. Okay. (15) She went to Winston. (16) What about when you were a senior brand manager. (17) Is that what the brand would like look like for Csmel? (18) A. These specific programs? (19) Q. Not the programs. The format again? (20) A. I don't know it we used this format or not. Gosh, (21) I don't remember. (22) Q. Would the plans, either this type of plan. the (23) promotional plan, ever provide detail like how much money (24) would be spent, where the promotion would be given? (2S) A. Yes. Sometimes. Page S82 (t) Q. So the plan would - that wouldn't be a separate (2) document? (3) A. It could be. It could not be. It just depends on (4) what the Individual put together and what purpose they're (5) putting it together for. (6) Q. Isn't a document that provides detail to either a (7) media marketing CMAXfm plan or a promotion plan, a general plan, (8) isn't that called a deck? (9) A. No. A deck, that's sort of a general term, but a (10) deck, a presentation deck we call them, is just all the (11) charts that are in the presentation. The deck of charts. (12) Q. So that's - that's not specifically used for (13) plans. That might be used for promote - for presenting a (14) plan to somebody? (1S) A. It could be used for any presentation. It's the (16) deck of charts. (17) Q. Okay. Is specific information about given (18) promotions, would that be called detail? (19) A. Could be. (20) Q. Is that - is that a term that's used at Reynolds (21) to identify documents that provide more information than the (22) general plan, that a particular promotion would run during a (23) particular amount of time? (24) A. It wouldn't be the name of a docuttient. You might (25) use the term promotion detail it you had more detail than Page 583 (1) the general just summarization of the promotion. (2) Q. So there might be a summary promotion plan and (3) then a full-blown plan that would include that detail? (4) A. Not necessarily. It could. It could. But that's (S) not necessarily true. (6) Q. Did Reynolds have any procedures in place to help (7) its employees when they were preparing plans or media plans, (8) promotional plans? (9) MS. BIXENSTINE: Objection to the form of the (10) question. That's vague. (11) THE WITNESS: What do you mean by procedures? (12) MR. JANECEK: Q. Was there a Reynolds way to do (13) that? (14) A. I don't think there was a Reynolds way to do (IS) that. Each year - I can't say every year, but usually (16) during a plan cycle all the brands would use a similar (17) format. But from year to year that format could be very (18) different. (19) Q. Despite any change in format, would the type of (20) information that would be maintained in a plan be different. (21) whether it would be - what I'm saying is whether its one (22) document, one complete document with the over - the summary (23) plan in detail or two separate documents. Would the type of (24) information be the same? 4 Page 578 to Page 583 (415) 392-0650 Tooker & Antz A
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Page 347 1+ 1. rK vn:a ~n.r V ne sran v Crrro.u c: t..ro ra *t un .p yrt. s w rv.els:e .7n. . (Y, IIIrI t wii.r a {Mdi /11 /,• ./p0{In. e. .. a+»r 1 1 uans +avae Col.r+ + aaw.u. .:~ :p.rtat.llal .e.tte. .IOtc4te xi0stna er umos Tewao C"... ~at..w/a 7t, On•srla 4...,.,ta,» :,. 1•. K.ut, •:4Ir,M/. V/ 70. IM1 .'3A 11 .4ell 7f.• At 1~ u~%rtC f• .Y.. 4.h pA 0030 .' roocn ~ ..+; :,• rn':ruo ra~wo a•mna utk,...tN•«t L.atel L.I,..r.g.. Cd11wn, M1e1 H' Page 359 (20) (Ms. Ballinger and Mr. L'Orange leave the (21) conference room.) (22) MS. BIXENSTINE: And again. I'll ask the court (23) reporter to separately transcribe this portion of the (24) deposition and mark this as confidential under the Mangini (25) protective order. Page 360 (() And I also note for the record. I think I(2) neglected to do this yesterday, that we have an agreement (3) with Mr. Hopper that this deposition for purposes of the (4) Arch case is subject to the Arch protective order, and. it's (5) similarly being designated as confidential under the Arch (6) protective order. (7) MR. HOPPER: I acknowledge that. as well. (S) MR.IANECEK: Q. Ms. Beasley. you testified that (9) your best estimate of the amount of money that R.J. Reynolds (10) Tobacco Company annually spends on media placement with (i)) respect to the Joe Camel campaign as a whole is somewhere (12) between 30 to 60 million dollars a year. Is that correct? (13) A. What I said was on billboards, magazines and (t4) newspaper media advertising placement, that's a range for ()S) the Camel campaign. (16) Q. Okay. I'm going to direct yourr attention to the (17) middle of the page where it's - still on Exhibit 15 there. ()8) A. Middle of this page (indicating)? () 9) Q. Right. The first page? (20) A. First page? (2t) Q. Wel). it's the second physical page but the first (22) page of the document. (:3) A. Um-hmm. (a) Q. Do you see where it says Tooker & Antz -...... s vw..v ..,T..u aic"rc), • V/ lt, "tittOeatlaJ -3/.it/I97 Spending Levels? (23) A. Yes. Page 361 (t) Q. That - the document indicates that for the (2) project LF, the Camel Wides, the spending levels at least in (3) 1987 when this document was created were proposed - were (4) projected to be 100 million dollars for a national launch, (5) and 70 million dollars for regional introduction. (6) A. Um•hmm. (7) Q. With that information, does your estimate as to (8) the annual amounts that R.1. Reynolds Tobacco Company spends (9) on the Joe Camel campaign in its media placement portion, (l0) does that change your answer? (I1) A. No. (12) Q. Can you explain for me why one particular aspect (13) of the campaign could include on even just a regional basis (14) more money than the actual campaign. the entire campaign (IS) itself? (16) A. First of all, this Is - It says we are assuming. (17) It doesn't say that's what was spent. You know, this Isn't (18).+•hat was spent. This was - it says we are assuming. This (19) is something that talked about a launch several years off. (20) So this isn't what was spent. (2)) What probably these numbers included was (22) everything that was being spent on the brand. It's not just (23) about media placement. That they propose be spent on the (24) brand. (25) Q. So what other things would the hundred million Page 362 (I) dollar national launch number on the 70 million dollar (2) regional introduction include? (3) A. It could include packaging development. It could (4) include advertising development. It could include research (5) costs. It could include fees for advertising agencies. It (6) could include any promotions that were done or planned -(7) not done, because this wds assuming a projection. But (8) assumed. (9) All those categories I took you through yesterday. (10) Q. Any other categories? (11) A. The ones I just mentioned and all the ones I took (12) you through yesterday. Those would be the ones I - I mean (13) 1 don't know what they included, obviously, because all it (14) says is we are assuming. But that would be my estimate of (tS) what would be in there. 7DrAx(1) (t6) Q. And you can't think of any other types of monetary (17) allocations that would be included? (18) A. There could be other things. They could have (19) iacluded - I don't know, In-store costs or display costs or (20) who knows what they put in there. They don't give any (211) detail. (22) Q. Any other types of things that they could have (23) included in that number? (24) A. I don't know. (2S) Q. You can't think of any other types of things? Page 363 (I) A. I ean't think of anything else right now. (2) Q. Well. let me you ask this. Ms. Beasley. What was (3) the amount of money that R.J. Reynolds Tobacco Company spent (4).in launching the entire Joe Camel campaign? (5) A. What do you mean? (6) Q. You were just talking about all the different (7) types of things that money is spent on. (8) A. Um-hmm. (9) Q. What was that total dollar amount, to your best (10) estimate. for the launch of the Joe Camel campaign? (( l) MS. BIXENSTINE: I object that this is beyond the (12) scope of the deposition notice. But you can answer. (13) THE WITNESS: When do you mean? (14) MR.IANECEK: Q. When it was launched. (15) A. 1988. Is that what you mean? (16) Q. If it was launched in 1988. (17) A. It was launched in 1988. 1 don't remember the (18) total number. (19) Q. Can you give me your best estimate? (20) A. I don't know. I'd have to go back and look to see (2 t) what the total number was. (22) Q. You couldn't tell me if it was a dollar or 4 (23) billion dollars? (24) MS. BIXENSTINE: Objection. That's argumentative. (25) THE WITNESS: What are you asking me for? Page 364 (1) MR. JANECEK: Q. I'm asking for your best (2) estimate of how much money R.J. Reynolds Tobacco Company (3) spent on launching the Joe Camel advertising campaign. (4) MS. BIXENSTINE: Objection. Asked and answered. (5) THE WITNESS: I don't remember what it was. (6) MR. JANECEK: Q. CuuW It have been 4 billion (7) do)lars:' (415) 392•0650 Page 347 to rage 364 .. v 51714 2196
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s..le s,..,. AW,M.. Manqioi v. R.J. Reynolds Tobacco 590:21: 591:1, 9 owe (1) 451:5 Owen (3) 368.?4,• 369• 1, 3 Owens-Corning 111507:10 -P- p.m.(17)470:10; 474:18,21: 479:13. 16; 512:18, 21; 514:20. 25, 577.•8,11; 604:3, 6: 652:22, 25. 688:10, 12 pack (8) 441:14; 503:25; 609:12. 25; 610: S: 612: 4: 630:8• 14 package (14) 423:3, 25, 424:11. 18: 425:3, 7. 22; 426:3, 6, 8. 15, 42fi9: 436:14; 438:13 packages (1) 437••10 Packaging (1) 424:17 packaging (14J 403:6, 8. 12. 14: 417:24; 419:21; 423:19; 424: ! 6; 425:19, 24: 427••6, 14, 18: 436:19 PAGE (39) 359:22; 360:2; .161: 2: 362: 2; 363: 2; 364: 2; 365:2; 366:2; j67:2: 368:2; 369: 2: ,170: 2; 371: 2: 372: 2; 3 73: 2: 3 74: 2; 375: 2: 376: 2; 3 77: 2: 378: 2: 3 79:2; 380: 2: 381:2: 382:2; 383:2; 384:2; 385: 2: 386: 2: 387: 2: 388: 2: 389: 2: 390:2: 391:2; 39' 2:2: 393:2; 394:2; 395:2; 396:2: 397:2 Page (1( 487: 7 page (8;140l:2S; 402:21, 22; J04. 7 405: 4: 464: 7,• 470: 22; .t71::. :0• 21; 47~.:17• 19: 475:10: •t76:10: 477:12: 478:14: 4 79: 2j; 486: 23; 487.4, 5. 9: 497:12; 501:20: 519.4. 9. .16, 18: 524:23; 5 25:1: 531:8: 338:14, 16; 539:7. 9. 21; 540:3: 543:18. ::: 548:5; 551:7; 55a :10: 557:16, 17: 561:1: 565:17, 19. 20• 23: 567:22; 569:4: 571:19; S7S:3• 4; 5'9:16. ;0• 21. 594:12: 595:5; 597:6: 599:13; 607:12; 608:23, =»:610:7•9;611:11;616:22; 6; 7:4; 6:0:9• 19; 645:2, 4; 6s'.S. 16; 649:15. 16; 653:12. 19.:0: 662:=5: 668:5; 675:17 pages (6146-1:19• 22; 313:7,• 555: S: 616: 24: 620:16 Pam(I)661:2 N-NtELA (1( 351:9 Panther (2) 507:9. 10 paper (:) 437:20; 560:22 paragraph (43) 3S3:ZS; 469:1, 10. 12, 19, 20; 473:10. 15; 4 77:1 S: 4 78:1 S: 482:16; 489:25: 490:8, 12, 16; 491:1; 497:13; 554:11; SS7:18; 561:4: 563:6, 9; 569:10; S9S:7• 8: 647:10• 13, 14, 17. 20. 21; 648:17.• 649:12, 17, 18, 19; 653:10, I !: 673:25: 685::4, 25 I ~aragraphs (3) 472:21; 664:3, Pardon (1) 490.•1S paren (1) 641:23 ' parent ( t ) 469:25 parents (2) 676:6; 677:23 part (36) 403:21, 24. 2S: 415:16, 18; 424:13; 430:8; 461:20: 493:4, 11, 12; 494:9; 497:1 S, 21: SS3:8; 380:10; S83:S, 6; 586:16: 611:9: 612.•6; 617••1; 623:13; 633:7,• 649:7,• 660:2, J, 4. 16, 17,• 662:13; 664:1 St 669:12; 675:25; 676:1; 686:12 part•time (11531:24 parties (1) 637:24 partnership (1) 412.•9 parts (41429.•6, il; 4j1:16; 473:24 party (1) 642:16 passed (I) 413:6 patient (21456:1 S: 626:14 pattern (2) 509:15; 512:1 paused (21585.1. 626:19 Pay (1) 565:16 pay (2) 354:7,• 565:10 payable (1) 954:7 paying (1) 354.•18 Pearson (2J 368:24, 25 peckinj (2) 562:16 Peer (3) 479:3: 670:6; 678:7 peer (42) 491:9; 550:17, 19; 629:22; 630:23; 631:1, 7, 23; 632:19r 634: 2; 63 7: 8: 6 76:18, 22: 677:17 18, 20: 678:1, 4, 6, 7, 9• 11, 13, 18, 23: 679:1, 10. 19; 683.•9, 17,• 684:7, 12, 17, 25: 685:6; 686:3, 12, 13, 15, 18, 19, 21 peers (6) 478:22; 676:21; 683:14; 684:15, 16; 686:12 pen (1) 353:7 PenneU (10) 430.•16: 431:11: 432:19: 433:7, 12; 502:18. 20. 21; 309:8 People (11) 399:21; 400:2, 12, 13: 449:7,• 496:22; 531:23; 622:15; 650:20; 688:1 people (1s8J 426.9, 22: 440:8: 442: 8: 444:14; 445: 8: 448: 23; 449:2, 17, 20,.21, 23: 4S0:S; 432:5; 453:4, 11. 13, 21: 454.9,10;4SS:11,12,14: 484:24, 25; 485:8: 492:11. 14; 494:6, 13: 495:14, !S, 22: 496:16, 18. 23; 498:7 8: 499:4, 6, 24: 500:1, 10, 12, 23: 306:24; 509:5. 13; 511:23: 328:18; • 530:23:532:21; 533:13; 536:22; 546:19; 547:2; 512:13, 15: SS3:S, 17; SS4:17, 20, 22; 555:21, 23: 536:1, 2, 12, 14, 15. 16, 20, 21, 22: 557:2. 12; 558:5. 18; SS9:1, 7, 12, 13, 19, 20: S6S:5: 568:23; 571:1, 3: 575:1: 595:13: 597:23. 24, 25; 598:23; 599:1, 24; 607:21; 609:20; 611:12, 14; 614:2; 623:14, 20: 625:7• 8, 11, l4; Tooker & Antz Lynn Beasley , Vol. Q• S/30/97 626:4, 6, 7, 11; 627:3; 628:13: 629:4, 9. 10, 11; 630:1, 2. S, 1 S: 631:23 : 632:10. 20: 63 3:2 : 634:1. 6: 652:11; 655:16; 658:19; 665:12, 24; 666:1, 17, •25: 668:18, 23: 669:8: 670:6; 671:1, 4, 9, 10; 672:14: 678:22: 679:8, 1 S: 684:1, 4; 686:14; 687:8, 10. 12 perceived (2J 610:24; 667:21 percent (39) j57••9, 10; 446:1, 1!, 21. 25. 447••3, 8. 10, 17, 23• 24; 452:6. 19; 454:9; 456:12: 4S7••1: 473.6; 497••7,• S26:I9: 531:22; J49:10, 16: SSS:11, 12: $J8:6, 9,'16, 21; SS9:S, 11, 2): 366:4: 589:22 percentage (1) 542:2 perception (2) 561:17,• 631:8 Perceptions (1i 480:25 perceptions (3) 401:10,• 631:2r 634:4 Performance (1) 503:4 performance (1) 616:1 performing (3J 640:17, 20, 21 performs (1) 424:20 period (10J 415:7,• 442:•9: 454:20, 23: 491:24: S17••S; SS9:10; 572:4: 651:23; 677:4 permitted (1) 398:10 perpetuatinj (2) 490:22; 491:8 perion (44) 399:3; 400:4,• 418:2; 419:25; 441:1 !; 444:9; 469:22, 24; 478:20,• 47y:1; 516:17, 21: 522:14. 16, 23; 330:5: 533.•9: SS1:22; 552:17,• 561:9, 12. 18; 566:11, 15, 581:7,• 604:19; 606:4: 625:22: 628: 7,• 629: 21; 630: ! 6: 631:18: 630:19: 651:10: 655:22: 656:9; 676:20; 677:19; 678:22; 679:8, 9, 16; 686:10 personally (t) 5/3:14 personnel (3) 411:1, 7,• 603:22 persons (4) 448:1 S: 495:7, 8, 21 perspective (21411:16; 444:6 phase (1) 445.6 phenomenal (2) 543.9. 12 PhWp (3) 351:16: 399:21; 369:18 phUosophy (1) 450:24 Phone (1) 688•9 phone (I) 397:23 phrase (4) 613:22. 23; 614:3; 673:1 S Physical (1) 645:11 pbysical (t1648:18 physiological (3) 676:23; 677.•S, 8 pick (21443.9. 20 picked (1) 658:23 p(cks (1) 678:21 picture (101420:8; 589.•6, 11: 590:16; 601:16; 602:3, 19; 603:6, 14; 623:8 piece (1) 432:18 pier (3) 685:18: 686:25: 687.•1 pin(11412:19 (41 5),l92-0630 c.m.e., uea..-s, Pink r1507:9• 10 place (S) 427:!• 3: 506:16: 583.•6; 639:17 PLACED (391339:23; 360: j; 361:3; 361:3; 363:3; 364:3; 365:3; 366:3; 367••9: 368:3; 369:3; 370:3; 371:3: 372:3: 373:3: 374:3; j7S:3; 376:3: 377.•3: 378:3; 37q:3; 380:3: 381:3; 382:3: j83:3: j84: j; 385.1. 386:3: 387••); j88: 3; 389:3; 390:3: 391:3; 392:3 : 393:3: 394:3: 395:3: 396:3;397:3 placed (2) 472:8: 499:5 placement (2) 3S8:2S; S06:3 places 111609:23 PlaintUT (251352:20: 353:20: 3 99.• 14: 406:19; 463: 3; 463: S: 467.•1 S; 474:11: S15:4; 548:2: SS3:22; 567:12; 571:12; 577:3: 593:12; 607:4; 610:9; 612:14: 619:12, 17,• 644:8; 646:13: 662:3; 673:23; 681:7 PlaintiRs (1) 407:21 plaintiffs (1J 400:14 Plan [1) 516:10 plan (79) 469;14; 316:12; 517:17•• 518:3, 7, 19. 20: 579:13, 19: 380:10, 13. 14. 19: 581:2• 4, S, 22, 23: 582:1. 7. 14. 22; 583:2. 9• 16, 20, 23: 584:1. 4, 7. 16; S8S:13, 16• 22. 23; 586:1, 11, 12. 1S• 16, 20. 23, 23: 587:2. 3• S• 6. 7. 8. 14, 18; 588:11, 20. :1; 589::0. 21. 23. 24, 25; 590:4. 7. :1: 591:5, 6. 18; 392:=1. ::. 23. 25 planned (2) 579:11: 588:14 planning (1$J a10.•17•• 461::0: 516:24:317:4,7,8,11; 586:14; 591:12; 605:14: 617••23• 25: 618:4; 644:25 plans (26) 517:15; 578:25: 580:2: 581:22; 582:13: 583:7. 8; 584:13. iS• 17•1S8S:19; 586:2, 4, 13: 587:7 20: 588:9. 10, 21, 24; 589:10• 16: 591:1 592:20; 593:7 ' plausible (1) 456:5 played (1) 679:14 Please (3) 461:25; 514:13: 626:17 please (27) 408:22, 23: 409:2; 463: 3. 7,• 464: 8• 24: 46 7:18: 469:13, 20; 470: S, 13; 474:12: 477:10, 13: 479: 24; 481: S: 486:18, ::, 25; 487:13: 490:20: S0I:13. 17• 21: 594:12; 636:7 Plus (1) 657:8 plus (8) 429:19: 432:13; , 460:10; SSS:8; SS8: 21 • :2; 559:5, 12 PM (1) 473:21 pm (7) 470:8; 479:14: S1?:19: 514:21: S7T.•9: 604 4: 65::-3 POGUE (l) 351:2 Point (2) 351:2; 409:3 point (62( 398:11: :03:7. 23; From owe to Point 51714 2186
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I ynn i_ $ecl y D$,te E d'~~ EXHIBIT N0.11.~ M. BANTA•<.%0 7 ..~.._._ Ticfe, ~ 7/82-12/8? Marketing Assistant - NOW Brand 1/83-1/84 Marketing Assistant - SALEM Brand 2/84- i 0/84 Asst. Brand-Manager - MORE Brand l 0/84-8/8i Asst. Brand Manaager - CA.MEL Brand 9/86-12/86 Brand Manager - CENTURY Brand f l/87-5/87 Senior Brand Manager - CENTIJRYBRlGHT/DOR.AL/ STERLING/MAGNA 6/87-4/88 Senior Brand Manager - CAMEL 5/88-7/89 Director - Special Markets 3/89-7/9 t Vice President - Strategic Marketing Planning 8/91-6/93 Vice President - WINSTpN BU 7/93-6/95 Senior Vice President - WINSTON/CAMEL BU 7/95• Senior Vice President- Brands (WiNSTON/CAMEL/SALfiM BU) $enior Vtce, Pre-:~'%der.+ Brands ( w I hsTo N/ cArY.e LI SPcI..C~'M I \1 R N-TfE(' e / rMOeL/ N0C;
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, .~ SITUATION ANALYSIS 0 ECTI E ~(~~E~Ft_l~1f~ T~~k"~ 1EC~IENTS IN TERMS OF To IDENTIFY THE RELATIVE ITff t~' ` THEIR CONTRIBUTION TO R.~R 1 i~.Q~IC~- W..T',~? M: NEARLY ALL NEW ADULT SMOKERS ARE YAS WHO ARE 0i00SING A FIRST UB. SWITCHERS: SMOKERS WHO SWITCH BRAND LOYALTIES. OCCASIQNAL USE: SMOKERS WHO BUY SEVERAL BRANDS. STZZ fiiILIS • 50755 6214
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J% ~i ,~ Q~ IS I ATI N ANALY ym 6. T: •Z..-ft ItWORTANCE: SINCE THE CIGARETTE MARKET IS EXTREMELY BRAND LOYAL, THE BRAND THAT IS CHOSEN AS FU V xL G - IC EDGE. ~ F s OF VOLUME . ANNYAL. 5 ! YEAR ~ ANNBA4 5 - YEARS FUBYAS 1.6% 8.0% 1.3% 6.5% MARKETING CONSIDERATIONS: 50755 6215 YAS MARKET IS HIGHLY HOMOGENEOUS... KEY WANTS ARE TASTE/IMAGE. ONLY TidO BRANDS... MARLBORO/NEWPORT, SUCCESSFULLY COMPETE. • RJR HAS DECLINED • CAMEL GaEw IN 1988. SOS AGE 18-20 m MARLBORO 47.6 55.1 60.6 63.3 NEWPORT 10.7 12.1 11.8 11.8 RJR 17.7 14.5 13.5 13.8 CAMEL 3.3 3.3 3.2 5.3 IF 9ZZZ fiiTLTS
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CONFIDENTLIL STRATEGIC RESEARCH REPORT x, f4 , ^.J MARKET OVERVIEW .,, . ~ AND rr; .:~ KEY TRENDS/ISSUES ~ -1-rt ..~1 ~ ._=.1 . by j ~ ox, Richerd C. Nordine 1 - ~ .y i PUBI,ISHED BY THE MARKETING DEVELOPMENT DEPARTMENT R.J. REYNOLDS TOBACCO COMPANY, WINSTON-SALEM, N.C. 27102 \3se - ,0L, FtJM 060878
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ti A.. ~t~f SITUATION ANALYSIS CONCLUSIONS ~ • E E C dL° S FO RJR: .. .1 . ... .~.. o VOLUME A UAL YEA YAS 1.3 6.5 SWITCHING 2.7 13.5 .OCCASIONAL USE 8.5 8.5 • BEST LONG-TERM OPPORTUNITY: CONVERSION OF YAS - HOMOGENEOUS WANTS THAT CAN BE TARGETED - CAN ACHIEVE A COMPETITIVE EDGE - ONLY UlO BRANDS COMPETING ... 4 50755 6219 : G 6TZZ fiiTLTS
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SITUATION ANALYSIS SUMMARY Iii 50755 6216 FUBYAS AND BRAND SWIT cil < NITIES BECAUSE SUCCESS IN ONE YEAR BUILDS FU~J YOCCASIONAL USE IS 7HE ...~`r. . . . MOST IMPORTANT SHORT-TERM VOLUME OPPORTUNITY. I OF VOLUME AmtoiA ~ 5 .FUBYAS 1.3% 6.5% SwITCHER 2.7 13.5 OccaSIONAL 8.5 8.5 2. THE FUBYAS OPPORTUNITY HAS AN ADVANTAGE OVER THE OTHER TWO BECAUSE IT is: • MORE TARGETED (SIMILAR WANTS) • ONLY TWO COMPETITORS • CAMEL IS SUCCESSFUL s i 8TZZ fiiZLIS
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wC s,..m ASOWNW• Mangini v, R.J. Reynolds Tobacco department (47) 354.•4, S, 8, i 682:10 9, 10. 20: 3SS:25; 357:16. 17. 21: 358:9. 14. 18; 48:1:2• S. 9. 11, 12. 15. 17. 20. 22: 484:1, 5• 11. 17. 21, 23, 24; 485:8. 19: 504:1, 7• S0S:4, 23: 506:6, 12. 22: 562:9; 608:4, S, 13; 654: 24: 663:3. 14, 1 S: 671:7 depend (21651:9; 652:4 depends (161427••21; 517.•1; 524:18: 332:24: 536:20; 537.•2, 7, 13• 24: 538:3: 547: j: 562: 8: 582:3: 585:15: 677:13 deponent (1) 592:16 deposition (46) 352:4; 398:16, 20; 399:8, 22; 400:16, 17, 19: 406:15, 20, 23: 407.•10: 408: 4: 438: 21; 440:11: 450: 25: 510:12:511:12:512:17,22; 513:7,8;514:2;531:18; 592:12, 13; 604:2. 7; 613:11. 16, 18: 659:20, 22, 24. 25, 660:1: 661:9, 11. 15, 16• 24: 662:13, 13; 670:4; 687:25; 688:6 depositions (2) 399:14; 567:20 Derived (1) 645:8 derived (1) 485:18 describe (7) 357:7,• 417-2, 25: 418:2: 442:13: 607:22 described (6) 419:8; 422:7,• 586:14; 607: 24: 630:3: 667:24 description (6) 621:14, 15: 655:22; 656:9, 23; 686:21 design (11) 403:6, 8, 12, 14; 417:24; 419:21; 423:4: 647:25: 648:7•• 659:8 designate (1) 548:1 designated (3) 399:2, 16; 415:25 designation (2) 567:23: 608::0 designations (1) 545:15 Despite (1) S83:19 Detail (1) 584:21 detail (251581:23: 582:6• 18• =S: 583:3. :3; S84:S• 7. 11, 16• 18. /9. =2• 23: 585:10, 11. 12• 13: 586:5. 8, 9; 587:16. 22 detailed (4) 517:18• 19; 518:8; 584:1 details (:) 482:18; 584:4 determination (2) 530:20; 632:3 determine (6) 355.4• 6; 479:2: :94:1 2: 530: ! 9: 533:12 determined (3) 444:13• 19 develop (9) 421:21: 437•9t 482:1 j: 485:24: 522:10; 5.t 6:16: 599:5; 602: 8: 615:15 developed (23) 422:2: 460:22. :4; 461:5; 495:9, 16, 17, 18: 500:13• 14, 18; 501:1, 3. 9: S 94:17• 20: 597:19: 598:13, 22: 601:5: 676:6: 683:11 developing (101405:11: 461:21 • 22; 476:17; 485:16; 491: S. 21: 597:18: 598:10: 615:18 Development (2) 489:24: development (12) 404:18: 405:6. 12: 419:21; 460:25: 490:3; 494:10; S01:I0t 522:21: 606:22; 608:4, 13 develops (1) 482.9 Diane (6) 480:20; 548:16, 21: S6S:8; 611:3; 613:8 Dick (2) 548:16; 576:8 die (2) 453:11. 22 died (1) 450:8 dilYerence (9) 418:3: 507••20; 508:19; 522:18; S23:S; 337.•1, 5; 573:8; 681:22 dilTerences (6) 434:12. 24; 463:2t 311:13; .f23:24; S7S:1I differentiate (3) 323:10, 23; 546:19 d(fferently (4) 436:2; 544:22; 56S:S, 6 difticult (17) 425:18; 536:10, 15. 17, 18; 537.•6. 10, 22, 538:2,7,11,25;5l9:2,S,13, 16 direct (l0) 428:19. 22, 25. 490:11, 15. 509:3: 543:17• 655: 20: 679:18: 683:16 directed (12) 460:24; 572:10; 579:17,• 594:18. 23. 606:22; 616:3; 642:2; 683:8; 684:25; 685:6, 18 d(recting (1) 684:7 d irection (7) 3S7••24: 4SS: 7,• 602:16: 647.•24; 652:12, 14; 669:15 Director (1) 562:2 director (10) 489:19: 502:14, 17,•561:23:562:2,7,11,17 19: 566:23 disagree (10) 451:20; 459:24; 526:14: 532:11: 539.•6; 549.•6: 565:25r 667••25: 668:22r 685:14 disagreed (1) 685:10 disbeUeve (2) 502:7,• 559:18 discerned (1) 435:20 discharge (1) 411:12 -discounting (1) 476:19 discover (1) 650:3 discuss (4) 631:17; 649:20: 6SS:9: 661:11 discussed (151505:22: 506:3. 13, 21: 594:22; 596:1; 613:24; 614:2; 633:14, 16: 644a7,• 656:3; 658:23: 670:1 S: 688:4 d(scttsses (6) 401:2; 571:21; 621: 23; 634: 22. 23: 635:1 d(scttasing (11) 405:24; 406:2; 538:17,• 61 j:2, 16; 617•4; 619:21; 635:5; 642:21: 656:1r 661:15 Discussioa (6) 407:3; 463:10; 463:13; 46fi22; 474:19; 475:24 discussion (tt) 398:9r 440:1 S; 538:161540:1 S; 557:21: 558:1, 4: 614:25; 645:23; 656:16: 687.•24 Discussions (1) 6SS:2S discussions (11) 405:18: 506:5. 15. 19: 623:18; 635:21; Lytsn Beasley, Vol. II- S/30/97 661:24; 666:19, 21; 667••6, 8 diseases (2) 454:3: 506:10 dispense (1) 407•2S . display (4) 424:10, 12, 16; 442:22 displayed (2) 426:3, 8 displaying (21424:14: 444:17 distinct (1) 431:10 distinction (1) 432:1 d(stinctiotu (3) 432:2; 433:17,• 434:5 distinctly (1) 431:4 distinguish (t) S07••2S distinguishea (11410:21 distributed 111487.16 distributbn (1) 446:14 divided (1) 469:15 document (Z28) 353:19• 404:11, 16. 17,• 405:3: 406:7. 9; 411.9. 413:7,• 462:2J; 46j:17, 19; 464:7, 18; 465:9. 17; 466:3, 12, 13, 20,• 467:3, 8. 18;468:2,3,6,8,17,18: 469:2, 8; 470:12; 471:21, 22; 472:3, 7, 10, 17,• 474:1 J, 24; 477••10, 13, 16, 22; 478:10, 14; 479:23, 24; 480:1; 482:17, 23; 486:22: 487:1. 8, 19, 24; 488:8, 9; 489:20; 492:19t 497;12: 498:10, 17, 23: 501:16, 19.20. 24; 503:19; 504:3; 513:15; 313:3, 7, 9, 19, 22, 23: S 16:2, 3,6,8,9;517:10,21;518:12, 13; 524:5; 525:12, 18, 19, 20, 25; 539:1: 543:21. 25: 348:1, S, 8. 10, 11. )4; 551:7; 533:21. 2S; SS4:3, 3; SS3:3; SS8:11; SS9:11; 560:9; 565:17; 367:11; 368:10; 569:1, 9; 570:3; 571:11, 21; 572:23; 573:6, 12: 577:2, 22; 578:2, 7; 579:6. 20; 582:2, 6. 24; 583:22;S84:9;586:24; 587:10, 13: 588:15, 21. 589:3, 25; 592:13; 593:2. 11, 14, 19, 22; $94:2, 23; 596:1, 23; 599:12; 606:17; 607:7: 608:15; 609:17;610:8;611:14;612:13. 17; 613:21: 615:9, 12, 21; 616:4. 6, 10, 12, 14, 16, 22. 23,24;617:2,4:619:7, 11,21; 620:4, 6. 23: 638:10: 641:16, 19; 645:13, 16, 20; 646:5, 6, 8, 9, 12; 650:25; 651:4:657:6, 13, 14. 15. 658:6; 662:2, S, 8, 12. 15. 17, 22: 663:19. 21: 671:24; 672:8: 673:23; 674:8, 11, 19, 21; 67S:S; 677:2, 3; 680:6, 7, 11; 681:6, 19; 682:1, 9 Documents (1) 564:20 documents (87) 400-1: 405: 24: 416:12, ! 3; 466: 23; 47j:24: 485:7,• 499:5, 10, 15. 16; 500.6: 502:1; 504:3; 513.•6• 8.11. S1 S:13t 517.•14: S18:1, 15. 17,• 349:24; 560:14; 564:14, 19. 24; 563••4: 569:19: 570:4. 17,• 378:5; 580:8: 582:21 r 583:23; 584.•9, c.a.fte b. t... sriT 10: 589:8: 590:8• 12. 13: 591:3; 592:6; 594:7. 10: 600•8. 11; 607:23: 612:20• 613•2. 6. 8• 10• 12, :S; 632:2:; 637:17. 24; 638:7, 13; 639:1. 7; 642 :21. 23 : 644 :20 : 64 S:17 : 646:18: 648:12; 649:6. 10: 6S 1:21, 23: 652:2: 654:15: 636:19, 22; 657:4. 20. 22; 658:9. 13, 15, 18, 23. 24: 659:4• 18 Doesn't (2) 494:20: S68:1 doesn't (42) 440:1.3; 445:20: 474:9; 481:21: 517.•16, 17. 20. 21; 518:20; 528:7; 330:25; - 537.•3: 347.-19; SS1:16. 18: 560:11, 20: 562:1 1; 366:1 S. 17• 567:9; S68:21; S73:16; 586:23• 2S; 587:14: 588:13: 59S:1: 608: 21: 619: 2S: 620:1 S: 627:24: 630:13: 640:17; 657:6, 12; 663:12; 664:23;675:12;679:25: 683:13 dollar (1) 4S8:2S dollars (2) 427:18: 462:5 Donohue (1) 430:11 Doral (5) 4S7•24; 536:24: 537:16: 542:21. 23 dosage (1) 647••25 doses 111509:4 dot 111363:12 doubt (3) 417••10, 11; 627:10 draft (t) 517:11 drafted (1) 444:15 dramatically (1) S91:16 draw (s) 421:15: 434: 5: 665:20; 666:2: 682:5 drawback (3) 596:20; 598:6: 599:15 drawbacks (2) 596:14, 25 drawing (1) 674:16 drawn (4) 672:9• 17: 673:9. 12 drew (1) 601:24 Drive (1) 409:3 drive (2) 553:7•• 648:19 driven (3) 503:9: 551:12: SS3:11 drives 111SS2: 20 driving (2) 476:1: 553:5 dropped (3) 452:5: 45a:18: 456:2 dropping (1) 456:3 drug (2) 509:16: 512:2 drying (2) 451:13• 18 Due111594:16 due (31473:13; 596:11: 602:17 duties (6) 411:8• 12: 412:23: 413:8• 23 duty 111413:8 dying (1) 454.•!0 dynamics (3) 490:22: 491:8: 620:21 dyslexia (1) S9S:4 -E- E.J. (1) 575:23 early (S) 402:9: 513 1. 16; 640:4. 6 . Tooker & Antz (41S) 92-0650 From department to eari} 51714 2182
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I0. accompltsbed (2) 336:1, 3_ beiief (113S9:2S 14 2S379•I 21 2S 380 UNIQUE WORDS: 546 TOTAL OCCURANCES: 2,541 NOISE WORDS: 385 TOTAL WORDS IN FLE: 7,350 SINGLE fZLE CONCORDANCE CASE SENSITIVE NOISE WORD LIST(S): NOISE.N01 INCLUDES ALL TEXT OCCURRENCES INCLUDES PURE NUMBERS WORD RANGES ® B017OM OF PAGE MAXIMUM TRACKED OCCURRENCE THRESHOLD: 250 -1- 10 (11360:8 10-year (I) 375:9 100 (61350:4; 359:7, 9: 361:16: 362:2, 9 13(1)349:17 150 (2) 379:23: 380:10 15th 111380:21 1950(I)377:4 1985 (I) 377.•2 1987 (7) 350:3: 353:14: 359: 4, 5: 361:1 S: 365:14; j76:2S 1988 (51332:1 S. 16. 17.• 363:10. 18 -2- 200 (2) 379:23: 380:11 -3- 30 (7) 349:12; 357:24: 358:3. 8: 378:1 S• 17,• 384:10 300 (8) 359:7. 8, 13; 361:16: 362:2. 10: 380:2 36012] 380:3. 4 -4- 4 (2) 352:22; 353:6 -6- 60 (9) 349:12: 357.•24; 358:3. 8: 378:1 S• 17, 18: 384:10 -7- 70 (:) JS0.•S; 351:1 -A- ability (8) 360:3: 361:13, 21: 362:2. 6• 18, 2S: 382:13 able (:1360:9: 373:14 Tooker & Antz . . . , .6. account (t) 338:13 believe (15) 359.•6, 17,• 366:7,• 381:10: 382:23: 384:16 accurate (t) 364: 3 367.•24; 369:23; 370:1, 11; catrtpaipt (31(149:11. 1 S: accurately (2) 360:21: 362:22 37.f:6,• 374:15: 375:19; j78:13: 350:9, 13, 14; 352:4. 10: acknowkd=e (1) 349:7 37y.-4: 383:10 353:3, 22: .fS4:6. 8. 10. 12. 13: activities (1) 358:14 benefits (1) 376:18 356:7, 8. 9. 11. 13. 16. 18. 20. actual (91350:14; 381:6. 21, bi-anttual)y (11 j84:21 21, 24. 23: 3S7••3, 8.10.12. 24: 382:1, 12; 383:3, 10. 14 billboards (91349:13: 356:10, 15. 19. 21; 338.•4, 5. 7. 15. 16: Advertisin= (21365:11, 12 19: 357.•13, 22; 358:7.• 365:11: 363:5, 9, 11: 363:10• l i• 13; advertising (221 349:14,• 370:j: 374:19 367.?. 8: 374:16: 373:11: 351:4, S; 353:3: lS4:6, 7,• b(llion 121352.23. 353:6 384:16 d36:10, 20; 357.3. 7. 19; BIXENSTINE (361348:22; case (2) 349.•I: 353:17 338:4: 365:10, 12; 367•2, 7, 8. 332:11, 24; 353:4,13r 354:13, ategoria 1171351.9. 10.• 16: 368:23: d74:16; 378:15: 18. 22. 24,•,fS3:8, 10,15, 24; 356:13r 366:9.11; 369:19. 23; . 3dI:16 356:2: 337.•4; 338:18: 360:5. 370:19: 372:3. 8, 10. 18: agencks (I) 3.f1:S 12, 18; j61:4, 8. 17, 23; 375:7,• 378:4: $7D:4. 6. 7 agree (1) 356:2 362:11, 17, 20; 363:1. 6. 21: category (91369:1. 24: a=t•eetnent (11349:2 364:1, 6, 10, 17,• 365:3; 367.•3, 370:13; 372:14: j77:17,• 378:5: albcated 1213764. 5 20,• 368:5, 13, 18, 20. 369:7, 9: 380:l3: 384:24 allocations (1) 351:17 370:22t chance (21 j64:4, 18 ambiguous (1) 368:6 371:9, 23: 372:13; 373:16; change (2) 350:10: 368:2 Amount (1) 372:1 374:18, 24: 375:8. 22; 377:t0: changed (1) 368:8 amount (191349:9; IS2:3, 9: 378:11; 381:11: 382:17; changes (6) 383:18• 22: 334:4; 360:10: 361:13; 362:8: 386:19 384:6: 383:4, 21. 22 363:4; $65:9, 24: 367.21. 23: blank (3) 360:17, 25. 361.6 clear (7) 33.f:13: 333:8. 18: 371:23: 375:21; 377.•13; books (I) 363:23 356:3; 367.•11: 368:17.• 382:19 381:18. 19; 384:9; 385:15 Brand (1) 376:2 clearer (t1968:22 amounts (I) 350:8 brand (64) 350:22, 24: 356:M: closer (121359:8. 22: 361:15. annual (4) 350:8; 363.•4; 357.•9. 1S; 358:6, 10, 12, 13, 16: 362:2, 9: 378:16. 18: 384:18; 383:20 1 S, 16, 17, 19, 20; 339:3: 380:10 annually (1) 349:10 361:15: 362:9; 363.9, 13. 14, co-counsel (1) 364:12 answer (14) j30:10: 352:12: 15. 366:1. 4, 18. 20, 23: 367:9: Company (121349:10: 330:8: 3SS:12; 356:1; 357:16; 360:24; 368:4, 8, 24, 25. j69:3, 5. 12, 352:3: 353:2; 358:2: 359:2: 361:12, 25, 362:19, 21; 14; 370:20; 372:2, 3, 6. 23: 361:14; 363:9, 23; 378:23. 24: 363:23; 364:17; 366:2; 367•12 373:1, 20. 21, 23: 375:3. 21, 384:1 S answered (12) 3S$!4; 354:13; ' 24, 25: 376:20; 377:14, 24: company (71376:3. 8. 12, 13. 3SS;22: .IS7•4, 6; 36l:19: 378:23: 379:1. 21, 25: 380:7; 16. 17. !8 362:12, 17,• 364:14; 375:22: 381:10: 382:16, 23 competition (3) 383:20: 378:11; 381:11 break (1) 366:9 j8S:1; 386:15 answers (1) 360:20 breaks (1) 380:13 compliance ( I) 360:24 anybody (1) 370:24 broad (11 374:23 components (2) 336:12: Arch (3) 349:4, S broke (1) 366:10 358:17 aren't (1) 384:20 broken (2) 370:3: 38S:S computer (3) 373:4, 5. 6: argumentative (21352:24; budget (46) 353:14: 377.•17, 374:2. 4 362:20 23, 2S; 378:3, 10, 14, 20. 23; computers ( t) 374:8 Asking (I) 375:18 379:1. 20, 25: 380:6; 381:1, 3, concept (2) 333:21, 23 asking (18) 3S2:2S: 353:1; 17, 19; 382:2; 383:3, 6. 10, 11, conference (21348:21: 337.•12, 14, 17,• 359:20, 21: 16. 24. 25: 384:6, 8. 12, 15. 386:21 363:16, 21; 367.•12: 374:1, 5, 17,18.19. 383:5, 8, 9, 10, 18, confidential (3) 348:24: 7: 378:21; 379:9; 382:7 20. 25; 386:2, 10. 13 349:5: 361:4 aspect (1) 350:12 budgeted (413781, 3849, continue (1) j84:23 Associated (1) 376:13 10: 385:16 continuing (I) 363A assume (I) 364:19 budgeting (1) 385:13 copies (2) 374:8• 10 assumed (213SJ:8: 333:20 budgets (21380:15. 18 copy (11374:6 assuming (4)150:16, 18; corresponded (2) 383:11 • 13 331:7, 14 - C- cost (6) 358:2: 367:1 • 7: attention (11349:16 call (7) 366•i4'1S 23• 370•16 374:16, 18; 378:14 • • - D -. badgering (2) 360:5; 362:11 Ballinger (2) 348:20: 386:20 based (2) 381:19, 25 basing (1) 383:2 basis (8) 350:13; 363:20: 365:10; j66:1; 376:4. S; 383:17,• 385:3 Beasley (7) 349:8: 352:2: 360:9; 363:3: 365:2, 7,• 368:2 371:7, 12. 14 . • v • costing (I1386:14 calls (11361:18 c~u (14) 3S1:S• 19; 355:8: Camel (78) 349:11, 15; 350:2, 376:3, S, 6, 7 8. 10. 1l. 1S 9; 352:4, 10; 353:3, 14; 354:6: Counsel (2) 36I:S; 368:/6 357.•3. 9. 15. 19: 3SB`•4, 6. 16: counse111) 375:4 359:3; 361:15; 363:5, 9, 12, count (1) 3S3:13 13. 14. IS; 36S:J0. 11, 13: couple (2) 365:21 • 22 366:1, 4, 18, 19. 20; $67:2, 7 cou potu (1) 386:16 8. 22, 23: 368:5, 8, 12, 14, 15, course (11337:1 23, 24. 25: 369:3, S, 12, court (21348:22: j64:14 14, 20: 370:20: 371:5, 12. 14, cover (3) 376:25: 377: 2. 4 created (1) 350:3 (414) 392-0650 v From 10 to created 51714 2200