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a MiLITARY REPRESENTATIVES SIXTH SALES CYCLE OCTOBER 29, 1973 - DECEMBER 21, 1973 INTRODUCTION During the Sixth Sales Cycle, advertising and promotional support will be placed behind the following brands: SALES GROWTH PERCENTAGE BRANDS NATIONAL MILITARY Benson & Hedges 12.2 + 7.7 + Parliament 4.0 + .1 - Marlboro 12.4 + 5.5 + Virginia Slims 13.5 + 14.4 + *A11 Other Brands 2.1 + .015 - Total All Brands 10.5 + 6.0 + *I realize that support solicited in your accounts may vary from what will be promoted nationally. You will have an opportunity to obtain some support from the featured brands through the use of the Sixth Cycle's P.O.S. Materials that is being shipped. Some of your outlets may be able to use the Virginia Slims A-1 Displays. Obtain approval from George Karnal to use any field allocated incentives. Advise him of the specific quantity your section manager is making available so the information can be added to your incentive account in the computer bank. Keep in mind that the Sixth Cycle activity plus your regular incentive items should be adequate to gain support for all Philip Morris brands as we close out the year. TERRITORY COVERAGE & PLANNING . Territory Coverage: You have, by now, made a complete coverage of your territory. All headquarter and resale call cards must now be filled out completely. Before planning this cycle's activity, be sure the planning and objective setting phase has been accomplished. Planning & Objective Setting 1. Determine the exact order in which you will contact each of your accounts this cycle. 2. Each account must be covered before the year ends - the high potential accounts ought to be covered several times. 3. Review and plan your approach for each call. What are the anticipated possible objectives to achieving your specific objective (s) (sales and merchandising) this cycle. 4. Second or alternate objectives should also be listed. You should always attempt to sell your alternate objectives whether or not your first objective is accepted.

5. Record date of accomplishment for each objective on call card. 6. Review objectives for the first six months of 1974. List separately everything you would like to accomplish in each account and arrange primary and alternate objectives in order of priority with your section manager. DISTRIBUTION . Identify all distribution voids in each account. Close your two most important voids this year. Continue until attempts have been made to close all voids. . Our tobacco sales are poor. We are coming into the Christmas season and it may give you an opportunity to sell in introductory quantities for the gift-giving period. . Identify and maintain contact with the base vending specialist in an effort to improve the distribution on our brands. Coordinate your vending activities with your section manager and area manager-distributor sales. Follow through in an effort to maintain any new distribution secured for our brands. SAMPLING . Sampling Activity will convert new smokers which will positively affect the distribution of our brands. Always sample when time is available --sample clubs, resale outlets (generally or when running store sales), reception or waiting rooms, snack bars, bowling alleys, cafeterias, parties, ladies' luncheons, etc. However, secure permission beforehand, and sample when conditions are favorable. MERCHANDISING Your responsibility in this area is to gain and maintain product exposure at point of sale. This is an on-going responsibility that you will have to improve on during each cycle and in every call. Beginning with your highest volume calls: . Prepare for every resale account a PLAN-O-GRAM showing the present complete stock assortment, (including tobacco), and shelf location. . Expand the carton and package facings of our brands to equal to our national market share. Billboard all brands for maximum merchandising impact. In ever call install permanent or temporary point of sale advertising material. Use the Sixth Cycle material sent to you. Check with your section manager for additional material. order any other P.O.S. Mater- ial in limited quantities. Place shelf labels under each of our brands to prohibit encroachment by competition. Place single pack labels on package racks as reminders to refill with our brands. IV 0 .p Cn 4~11 0 ~ rn co rn

3 utilize any remaining Parliament Carriage Lights in the higher volume NCO Clubs, Officers' Clubs, or other similar outlets. Take the light in to show to the decision maker. He is more apt to take it if he can see it. . Marlboro clocks and department cigarette signs are outstanding perman- ent pieces. . Pre-plan your approach with vigorously as you would any all permanent material. Sell them as cigarette product or packing. The following is a list of the Sixth Cycle's P.O.S. items that are being made available to you: BRAND ITEM QUANTITY/CASE Benson & Hedges - Large Shelf Talkers w/cpn Pads 20/1 case - Small Shelf Talkers w/cpn Pads 25/ - Parliament - Large Header Cards Large Shelf Talkers 25/1 case 20/1 case - Small Shelf Talkers 25/ - Marlboro - Small Header Cards Large Shelf Talker 25/1 case 25/1 case - Small Shelf Talker 25/ - Small Header Card 25/1 case If the quantity of material that you are receiving is not adequate, let your section manager know. INCENTIVE ITEMS . Check your on-hand and reserve inventories for all of the incentives that were allocated for you for 1973. Requisitions must be submitted NOW for year-end promotional activity. Remember, you must allow 4-5 weeks for receipt of items requisitioned. Pre-plan and pre-book your promotions. Set your objectives and don't run out. Try first for floor bin displays or end-island displays with either A or B type incentives. If feature displays are not available, set shelf displays with B incentives on an on-going basis. Review your individual outlet sales figures and computer call report print-outs to determine where and why you should conduct store sales. Your store sales with incentives should be designed to: 1. Boost sales on slower moving brands. 2. Maintain sales on good moving brands. 3. Increase sales on your leading brands. N) 0 -A. -~P 0 ~ rn ~ ~

4 Identify a minimum of two (2) or more outlets (cover the base) each pay period for the remaining portion of the year, in which you will conduct manned store sales. . Set up "on-the-spot" promotions on an on-going basis. Take advantage of every opportunity to promote. The consumer, outlet, and you will benefit. . Be prepared to inventory and report regarding all incentives you have on hand, in transit and balance in reserve, if any, as of December 28. ADMINISTRATIVE/REPORTING . The call reports that you mail to New York each Friday should be on time and accurate. OF EQUAL IMPORTANCE, YOUR REPORTS MUST BE LEGIBLE. OTHERS MUST READ YOUR REPORTS AS THEY ARE "KEY PUNCHED" FOR COMPUTER PROCESSING. All call cards must be up to date and kept up to date. Your objectives for 1973 should be on each card. You should have a folder for every government account you call on. The folder should contain: 1. Sales figures, where available. 2. PLAN-O-GRAMS (present and proposed for more effective display and position of our brands). 3. Complete stock assortment, all brands, and share of market by tobacco company. Use Maxwell Report. 4. Any special specific account notes, objectives, etc. This is your last opportunity to effect positive changes in your business. What you accomplish over the next three months may determine many of your successes or failures for 1974. All efforts should be made to sell at least an extra week's business to compensate for increased cigarette volume during the holidays. I know you will give it your best. JPJP:izb