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,_...,.....~.._..a.,.-.....~.r~ PRODUCT' PROMOTION PLAN OBJECTIVES - MILITARY MILITARY REPRESENTATIVES SIXTH SALES CYCLE AUGUST 2 - SEPTEMBER 10, 1971 OBJECTIVES ACTIVITIES Secure 100% distribution These brands are showing exceptional growth~ rates. for all packings of Benson W'ith~the exciting promotions and advertising & Hedges 100's, Parliament support being given them we must make certain and Marlboro that all packingS are authorized and available in all military accounts. Sell additional quantities As sales of these brands increase, inventory of Benson & Hedges 100's levels must also be upgraded to insure availability Parliament and Marlboro at aiil times. Establish realistic objectives to increase inventories in all resale outlets. Improve Vending Distribution Military Special Offers Before you contact each~ account, analyze the situation carefully. Determine their present order quantities, number of stores serviced, review inventory levels and then set your objective for that account. Benson & Hedges 100's selling sheets (sample attached) will be supplied to assist you in your sell-in activities. Special emphasis must be placed on gaining authorization and distribution of Marlboro Menthol. Continue your efforts with vending specialist to improve distribution in all vending outlets. Strive to have all Army an&Air Force Exchanges participating in our vending program. There are currently no military special offers in effect. However, sell and merchandise the full corporate line imall assigned accounts 1002350808 Sell and display the full Concentrate on extending the distribution of Clark Clark Gum line Gum in your accounts. Review the distribution status in each account and set specific objectives for making improvements. Place special emphasis on getting additional placements for multi-packs. These larger units are becoming much more popular it

2 OB TFCTIVES ACTIVITIES Sell and display the full military outlets and' also represent greater volume Clark Gum line (contd.) for us. Ten-pack gum trees are still available to effectively display 10-packs. Sell and display A great opportunity is available to us in toiletries expanding distribution of our complete toiletries line. The increase in the number of authorized line items and~discretionary items open the door for our products. Take advantage of this situation to introduce items not previously stocked. Commissary Store Audits Many of these have not yet beenireceived. Complete this program as quickly as possible and forward' forms to Mr. Roy Lasarow in the New York Office. Air Force Commissaries Good progress has been made in these key resale outlets to promote our brands. Continue your efforts in these calls to place mass displays, place point-of-sale material and'conduct store sales Army & Air Force Exchanges On June 21 you were sent a copy of the new AAFES Cigarette Management Program. Make certain that our eight "Must" brands are in distributi~on and that inventories are adequate. Strive to get other of our brands in the three local option brand category. Marine Commissaries Incentive Items If you have Marine Corps Commissary Stores in your assignment make certain that our brands are included when they start stocking cigarettes and health and beauty aid's. You will soon be receiving new incentive items. Use these to best advantage in gainingnew smokers for our brands, getting introductory orders and buiLding mass displays. Placement of incentive items on cartons placed'on carton racks are of littlie benefit in creating new smokers for our brands. Try for floor bin displays in every poss ib le ins tance . 1002350809 Sample and SwitchiSell Your allocation of 4's"and20's must be used to effectively influence smokers of competitive brands to switch to ours. This can only be done if you use a truly professional approach giving sound evidence that ours is a superior product.

- 3 - OBJECTIVES ACTIVITIES ~ Present effective business Effective business review presentations have been reviews instrumental in gaining many pluses in key military calls. presentations to any account sales Make where and merchandising these you have not previously done so and follow up on those where you have. GENE RI,L At a recent Board'.of Directors meeting, Mr. Jack Landry, Vice-President-Director of Marketing, made a presentation imwhich he outl!ined the very favorable growth of the Tobacco Division of Philip Morris U.S.A. He pointed out that our first six months of 1971 sales were up 11.1% as opposed to an estimated industry increase of 2.6%. He reported that our market share had risen to a new high of 17.9%. Broad media advertising support and promotional programs have been developed and successfully e:eecuted'. Sporting and other special events sponsoredlby our brands were discussed, as well as the significant contribution you have made at the retail level. All of management are extremely proud of these accomplishments. However, they are not known only to us. These racts are published in newspapers, trade journals and other publications. Certainly, our competition is well aware of the vast progress made by Philip Morris. Our goal of becoming #1 in the industry is by no means taken lightly. You can be assuredthat your company has tot.llly dedicated itself to the accomplishment of this goal. I am fully confident that the sales force will also hecomr fully committed to help accomplish this attainable goali. I- JPJL/ lms . J.P. Jeb Lee