Tobacco Documents Online

MILITARY REPRESENTATIVES FIRST SALES CYCLE JANUARY 1, 1974 - MARCH 1, 1974 INTRODUCTION During the First Sales Cycle, advertising and promotional support will be placed behind the following brands: SALES GROWTH PERCENTAGE BRANDS NATIONAL MILITARY Marlboro +12.9% +6.6% Parliament + 3.8% +0,4% Virginia Slims +14.1% +7.1% Benson & Hedges +12.1% +8.8% Total All Brands +10.8% +7.1% Sales growth in the military for the first 10-months of 1973 has not kept pace with growth nationally. You must make plans now to get your sales in line with the national sales growth. The new tools provided as a result of the military seminar will be very helpful to you in attaining your objectives for 1974. It is essential that you master the use of these tools and use them to affect the accomplishment of your objec- tives for 1974. SETTING OBJECTIVES By now your Section Sales Manager has covered with you the military program in its entirety. So that we can immediately utilize the tools issued for this program, the following steps should be taken: TARGET OBJECTIVES: Develop your target objectives first by yourself. Then discuss with your Section Sales Manager ob- jectives set for the First Cycle 1974. Use your computerized activity print-outs and customer sales figures as the primary sources of information. FOCUS OBJECTIVES: Focus on two (2) accounts per week to identify opportunities and establish objectives. The Account Focus Report should be completed for every account for which you do not have target objectives. Complete two (2) or more reports weekly until you have filled out the account focus on every account. N 0 -p ~ -P 0 0 N ~

2 in instances where you are able to obtain customer support on brands that are being featured this cycle, P.O.S. items listed below will be made available to you: BRAND ITEM QUANTITY/CASE Marlboro - Small Shelf Talkers w/cpn pads 25/ - Large Header Cards 25/1 Parliament - Small Shelf Talkers 25/1 - Small Header Cards 25/1 Virginia Slims - Small Shelf Talkers 25/ - DISTRIBUTION Small Header Cards 25/1 In each instance where a distribution presentation is given, show possible dollars lost by not stocking brands presented. SHELVING Check as you make each exchange calls to make certain you are holding the shelf space allocated. If you lose space on our brands, contact the chief of Inventory Management - He can assign space (two-row minimum) to our approved option or test brands currently or future stocked. In outlets where you have no Plan-O-Gram, make certain our carton and packing facings equal our National Market Share. The National Maxwell Re ort or your Philip Morris Local Share of Market Report are the best sources for determining market share. Place shelf labels under each brand to prohibit encroachment by competition. MERCHANDISING De artment Markers - should be placed at every opportunity. Take it into the store wit you. The manager will be less likely to refuse the department marker if you show it to him. Pack Masters - Pack Rack - Some of our Military Representatives have already been success u in insta ling the Pack Master-Pack Rack in Coast Guard and Marine Corps Exchanges. Determine what outlets in your area will accept the Pack Master - sell to each outlet where practical. Submit all requisitions for Pack Masters-Pack Racks through your Section Manager. i

3 . Benson & Hed es Key Chain A-1 - April 1 - April 15, 1974. You will receive a shipment of 2 column standard military floor stands and "on carton" Key Chain premiums (120 per floor stand). You will also receive Benson & Hedges 100's generic headers for use on the displays. Please allow 4-5 weeks for shipment. Displays will be available for shipment February 25, 1974. Remember, our contract states that displays must be up from the lst through the 15th of the month. INCENTIVES All incentives that you have on hand or allocated must be utilized, as new incentives for 1974 are not yet available. The Military Sales Inventives "On Hand" Inventory Report is to be completed as of the close of business December 21, 1973. All locations must be checked - your car, storage rooms, etc. This report should be mailed to Mr. George Karnal (N.Y. Office) on December 21, 1973. Where you have incentive items in reserve which can be used, you must still allow 4-5 weeks for shipment. SAMPLING ACTIVITY Every opportunity should be made to sam le and switch sell the military consumer. Make certain that you secure permission from the proper source before sampling on switch selling. REPORTING Business Reviews: We want you to continue making business reviews to the target customers that you have identified. Include in your Monthly Military Report any business reviews that you were able to present. There has been instances where errors have appeared on the Computer Print-Out. If distribution print-out errors occur, they should be handled as follows: . Where there has been a distribution omission, or where there has been an incorrect "X" showing brands stocked, make the corrections on your next call be entering an "A" for stocked or a "D" for not stocked. On other important print-out errors, write to George Karnal giving him all the details, why the item or report is incorrect and what it should be. Every effort must be made to accelerate sales growth in all military outlets.

RETAIL ACTIVITY (CLEVELAND & HOUSTON) FIRST SALES CYCLE JANUARY 7, 1974 - MARCH 1, 1974 BRAND POSITION PERIOD 1-A JANUARY 7 -- FEBRUARY 1 PERIOD 1-B FEBRUARY 4 -- MARCH 1 FIRST MAJOR PARLIAMENT SECOND BRAND MARLBORO RED & LIGHT VIRGINIA SLIMS THIRD BRAND BENSON & HEDGES MARLBORO RED & RED 100's SELLING IN FEATURED BRANDS The offer to the trade this cycle is 5% "free goods" (1 pack free with 2 cartons), maximum 5 packs with 10 cartons.... PLUS.... $1.50 "Set/Sell Allowance" for placing display in a self-service position on the counter or check-out for a period of 2 weeks. In those outlets where you cannot place the Set & Sell $1.50 display, you may still sell-in merchandise outlined in the Product Promotion Plan, giv- ing 5% free goods as authorized, or vice versa. SELL-IN FIRST 4 WEEKS SELL-IN SECOND 4 WEEKS 5 - Par iament (3-80/85's & 2-100's) 5 - Parliament (3-80/85's & 2-100's) 3 - Marlboro (2-Lights & 1-Menthol) 3 - Virginia Slims (2-Reg & 1-Men) 2 - Benson & Hedges 100's (1-Reg & 1-Men) 2 - Marlboro (1-100 & 1-Men) 'f0 - Carton Sell-In '10 - Carton Sell-In Sell-in extra cartons (over the 10 carton sell-in) of Marlboro Red and other Philip Morris brands not featured. Marlboro Red must be displayed with Lights in B, B-1 displays during the first four weeks of the sales cycle. Marlboro Red must be displayed with Katklbdro Menthol in set/s-ell displays during the second four weeks o- t~tne-saies cycle. • GRATIS WILL NOT BE OFFERED FOR PURCHASING MARLBORO RED (80mm or 85mm). . Where you actually placed displays, show $1.50 for display payment on .• the bottom of the gratis receipt. The same receipt is used for rg atis and $1.50 payment. All gratis receipts must show signature of person receiv ni g payment. The receipt must also be attached to the Weekly Expense Voucher or Daily Work Record, in accordance with Section Policy.

Fk NON-CONTROL OUTLETS A SUGGESTED SALES APPROACH - The presentation format below will serve as a guide to making a brief "Profit Oriented Presentation" to the buyer. You may vary your Opener, Expand on Benefits, and vary your Close as the situations warrants. FORMAT OPENER: PHILIP MORRIS IS OFFERING A 10 CARTON PROMOTIONAL PROFIT OPPORTUNITY.... . FEATURED BRANDS **BRANDS GROWTH 5 - PARLIAMENT % *Consumer Offer: 3 - MARLBORO % *Consumer Offer: 2 - BENSON & HEDGES % *Consumer Offer: RESALE VALUE RESALE VALUE OF 100 PACKS X ~ PACK $ YOUR COST (REGULAR) NO. CTNS. X$ _$ (100's) NO. CTNS. X $ _ $ YOUR COST TOTAL COST: $ YOUR PROFIT DOLLAR PROFIT EARNED (SUBTRACT COST FROM RESALE VALUE) $ . Set/Sell Allowance $ . 5 "free" packs - resale value e $ TOTAL PROFIT TOTAL S PROFIT EARNED ON 10 CARTONS . Percentage earned on investment $ OR % CLOSE: *REFER TO PROMOTION RATIONALE FOR CONSUMER OFFER. **BRANDS GROWTH AND/OR MARKET SHARE IS AN OPTIONAL ELEMENT OF THIS PRESENTATION AND SHOULD BE USED ON AN AS NEEDED BASIS.

CONTROLLED OUTLETS A SUGGESTED SALES APPROACH A thorou h and complete call must be made in every controlled outlet. Your primary o jectives are: ~1T Getting to the order guide, (2) Increasing the base inventory in each outlet and (3) Getting the merchandise out on the carton and pack racks. The following fundamental steps must be taken to sell the store manager: FORMAT APPROACH MANAGER: Tell purpose of call. SERVICE DISPLAY AND RACKS: . Fill and label pack rack. . Fill and label carton rack. . Refill and relocate A-1 or other displays as needed. P.O.S. ITEMS (SMALL PIECES): Small items such as shelf talkers and coupon ads s~iou~d-5e put i n p acT~ e as you are servi ci ng racks anc cTi spl ays . INVENTORY CARTONS ON HAND: List following selling points: . (Brands) in which manager is low or short. . Manager's inventory status - your past three trips. (Take information from call card). • Out of stocks are losing him Cartons - (Dollars) weekly. . The growth of our brands: Parliament % Marlboro % Virginia Slims q Benson & Hedges % . List your order..., (List by Brands) (Total Order) . Make certain all brand needed by the outlets are placed in the order guide. This information must be left with him to be passed on to his order clerk if the order is not placed in the order guide. • His weekly order should be increased by cartons. CLOSE:

., OTHER ACTIVITY SET/SELL DISPLAYS An example of how you may establish overall objectives for placement of set/sell displays is shown below: DISPLAY/PERIOD QUANTITY UTILIZATION OBJECTIVES 30 Pack Set/Sell (lst major-8 weeks) 150 Place 3.0 per day for 34 days 18 Pack Set/Sell (lst major-8 weeks) 50 Place 1.5 per day for 34 days 20 Pack Set/Sell (3rd brand-lst 4 weeks) 50 Place 1.5 per day for 34 days 20 Pack Set/Sell (3rd brand-2nd 4 weeks) 50 Place 1.5 per day for 34 days *Total Set/Sells Placed - All Displays 250 Place 7.5 per day for 34 days *Now that your allocation of Set/Sell Displays has been reduced, you can place an aver- age of 72 displays daily for the first 34 days of the sales cycle and ocmplete your objective. Additionally, you would have five (5) days remaining in the cycle to re- present anyone that refused on your first call or any buyer that you missed. Set/Sell Displays are to be placed in uP front location for 2-weeks. Stamp on back of "Paid Displays." Keep up and filled through (Date). OTHER ACTIVITY P.O.S. ITEMS (LARGE OR PERMANENT) Identify rimar and alternate location for posters, department mar ets , or clocks. Tell Manager where you will place these items. REPORTING Several changes have been made in your Scanner Reporting Sheet as indicated below: Special Instructions: Columns #1, 2, and 3 will be used to report special activity as designated by the Director of Sales. 2nd Major Cigarette: This column should be used only when structeato do so by the Director of Sales. Total Gratis Used: As previously instructed, gratis payments may be combined and reported on the Expense Voucher and Scanner Reporting Sheet. If you have any additional questions or problems with regards to Scanner Reporting, please contact your Division Manager at once.

PROFIT ORIENTED PRESENTATION EXPLANATION OF ARITHMATIC NON-CONTROL OUTLET *RESALE VALUE: - Take the 10 cartons purchased - convert to packs (100) packs. Multiply 100 packs times (X) resale pack value - (Example: 100 packs X 50~ = $50.00). YOUR COST: - *Take the number cartons of 80/85 ci gar~ettes purchased - multiply (X) by the retailers cost - for his total cost on Regular cigarettes $ *Repeat the above for the total retailers cost on 100's $ . TOTAL COST: - *Add the two items above together for retailers total cost for purchasing 10 cartons o cigarettes. o~ - cost = $39.00. DOLLAR PROFIT EARNED: Subtract total cost - $39.00 from the resale value $50.00 to get do11 ar profits earned $1 .00 Add to dollar profit earned the $1.50 set/sell allowance. Also, add to dollar profit earned the resale value of 5 "free" packs of ci arettes. (Example: 5 packs at Rt per pack = $2.50~. Compute the percentage earned on the 10 cartons investment in the following manner: Example: Gross Sales -$54.00 (resale value +$1.50 + 5 free packs) Total Cost - 39.00 (dollars invested for 10 cartons) Gross $$ Profit - $15.00 or 27.7% $15.00 : $54.00 = 27.7% *Remember, as you compute your resale value for 10 cartons of cigarettes purchased, convert the 10 cartons to packages. The reason for the con- version should be obvious: most sales in the non-control outlet will be in packs rather than carton sales.

MERCHANDISING PROGRAM SET-UP SHEET (CLEVELAND & HOUSTON) PLAN A-1 DISPLAYS - VIRGINIA SLIMS Virginia Slims will be featured with a 30 carton floor display for a one week period between November 26, and December 21, 1973. The 1974 edition of the "Book of Days" is offered to the consumers "FREE". This tremendously popular engagement calendar will be an "ON CARTON" Premium. Any A-1 Displays not installed during the Sixth Cycle 1973 should be installed immediately during the First Cycle 1974. SET/SELL DISPLAYS Parliament (1st Major) - January 7 - March 1, 1974 . Benson & Hedges (3rd Brand) - January 7 - February 1, 1974 Marlboro Red/100's (3rd Brand) - February 4 - March 1, 1974 PLAN B DISPLAYS Wooden - Parliament will be featured January 7 - March 1, 1974. New Wire Rack - Parliament will be featured in the top section January 7 - March 1, 1974. Marlboro Lights/Red in the lower section - January 7 - February 1, 1974. Virginia Slims in the lower section - February 4 - March 1, 1974. PLAN B-1 DISPLAYS Parliament - large section January 7 - March 1, 1974 Marlboro Lights/Red - small section January 7 - February 1, 1974. Virginia Slims - small section February 4 - March 1, 1974. PLEASE UTILIZE THIS PROGRAM SET-UP SHEET ONLY SHOWING POSITIONING OF OUR BRANDS IN CONTRACTED DISPLAYS. DISREGARD THE SET-UP ACTIVITY OUTLINED ON THE INSIDE OF THE PRODUCT PROMOTION PLAN FOLDER.

CLEVELAND & HOUSTON POINT-OF-SALE KIT - 1ST SALES CYCLE JANUARY 7 -- MARCH 1, 1974 PRIMARY - (CLEVELAND & HOUSTON) PARLIAMENT 80's, 85's - NEW PACKAGE INTRODUCTION CASE JANUARY 7 - MARCH 1, 1974 CODE NO. S/Rs DM's PACKING 30 Pack Set & Sell P 7-74 100 100 18 Pack Set & Sell P 8-74 50 50 Small Shelf Talker P 9-74 50 Band 50 Poster P 14-74 30 Bulk Brochures P 15-74 20 Bulk SECONDARY MARLBORO GENERIC - CLEVELAND & HOUSTON - RED & LIGHTS JANUARY 7 - FEBRUARY 1, 1974 Small Shelf Talker MA 47-73 50 Band 50 VIRGINIA SLIMS REGULAR & MENTHOL "T" SHIRT OFFER FEBRUARY 4 - MARCH 1, 1974 Small Shelf Talker with Coupon VS 4-74 50 50 Pads of 50 TERTIARY BENSON & HEDGES 100's - GENERIC JANUARY 7 - FEBRUARY 1, 1974 20 Pack Set & Sell Unit BH 1-74 50 50 MARLBORO GENERIC - CLEVELAND & HOUSTON (FROM STOCK) - RED & 100's FEBRUARY 4 - MARCH 1, 1974 20 Pack Set & Sell MA 79-73 50 50 "Special Offer" 10 Carton Bands SP 1-73 20 20 (without double stick) DAILY WORK RECORD 2 1 RETAIL ORDER PADS 2 1 MASKING TAPE 1 1 SCANNER SHEETS 10 -