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Jl:L 26 ' 93 11 :42 LEO BLRNETT (15 ) P. 2 11 LEO BllRNETT USA. 35 West w3daer Dri~ CftiCeOG ~ 60601 Tef (3t~ 22~58691 FeX(M,'20~32AA July 16, 1993 REV ISND TO 3NCYA'OR OFF' ~ July 33, 1993 Mr. Eric Ostern PHILIP I4ORRYS 120 Park Avenue New York, NY 10017 RE: !L'I`ERNaiTI4E AND I~QLITl1RY PLAN REVISIONS Dear Eric: This letter and the attached flowchart outline our recommendation regarding revisions to the Alternative and Military Media Plans. VACKGRO-M The alternative and military ROP plans were on hold pending final creative development. The initial ROP plans called for a PG 2/C, running six times from June through December. Additionally, the following funds were budgeted for the Alternative and Military `Media Plans: Alternative 8udget Military Budget ROP $370.6M $304.5M Magazines - 6 93. M Total $370.6IX $397.9M Reses'Ve Funds5~0. AM 200 0_ _ Total $370.6M $597.91K Following summarizes our revisions to the Alternative and Military Media Plans. Please note that the alternative and military ROP portions of the plan assume 4 insertions: 3-PG 2/C and either a Centerspread 3/C or a Centerspread 2/C. We have included cost estimates for both of the possible centerspread creative options. PLAN M,T82=IVE "DT.A Since the original alternative ROP list was approved, we added one new paper, il a er, in New York, per your direction. (Attached is the revised list of altarnative newspapers).

.TLL 26 '93 11:42 LEO BLRNETT (15) P.3 alternative Wia Plan Costs Following are media cost estimates for an alternative ROP buy, for each of the creative unit options described previously. # of Markets 10 # of Newspapers 19 (See attached list for complete list of alternative newspapers) Creativo IInit #1 Crea.tive Unit #2 4 X Freq. 4 X Freq. 3-PG 2/C 3-PG 2/C I-CSP 2/C 1--CSP 3/C $335,165 $368,682 sr.h Per your request, we have looked into readership and circulation patterns to determine whether special/holiday issues aff@ct circulation. We have found no data to suggest there is a significant increase in circulation corresponding to special/holiday issues. However, subjectively, we believe that readers are more involved/more attentive to them, due to their focus on local events/topics of relevance to the papers' readers. Our revised alternative scheduling recommendation takes advantage of potential increased reader interest in special issues and builds rsach quickly. We recommend the following schedule for the alternative newspaper plan: Issue DatQS (based on Friday date of the issue date week) ISSDB DATE ON SAIZ DATE September 3rd (Labor Day Weekend) September 1st September 17th September 15th -October 8th October 6th ---October 29th (Halloween) October 27th MIIITM NEWSPliPEit PI,~N Attached is the updated list of base newspapers. We have dropped one paper from the original list due to an excessive mid-year rate increase (Ft. Sill's Cannoneer - rate increase 45%). It has been replaced with another base paper (Camp Ioj@una°s g1412e) which recently began accepting tobacco advertising. This new base paper meats all of our original selection criteria (circulation, active duty personnel, commissary sales etc.).

.TUL 26 '93 11:43 LEO BJZNETT (15) P.4 xi ti i_ta= KCkT_gMper Costs Following are media cost estimates for a military ROP buy, for each of th4 creative unit options. ~ of Base Newspapers 46 Creativo vnit #1 Creative Unit #Z 4 X Fraq. 4 X Freq. 3-PG 2/C 3-PG 2/C 1-CSP 2jC 1-CSP__3/C $147,978 $186,657 e Given a 4 x's frequency schedule, we recommend spacing our insertions closely together to build reach quickly and increase impact for our military ROP effort. We recommend a September/October schedule. Issue Dates (based on Monday date of issue date week) ISSUE DATE ON FaLE August 30th (Labor Day) August 30th September 13th September 13th October 4th October 4th October 25th (Halloween) October 25th ~ti~_it9ry magazine Pl~n Unim Per your request, we have contacted AArAF Times and requested an alternative for our August 2nd back cover franchise position. On a one time only basis, we.may switch our insertion date from the August 2nd back cover to the September 6th back cover. Plan Revisions To complement our military base papers and ANAFTimes insertions, we recommend the purchase of two additional military magazines, a u and the Troop Edition of Off Duty. Attached is a spec sheet providing additional details on both publications. Salute, reaches theyouung male military market and thus increases reach of the younger segment of our demographic target. Although our spec sheet for Off Duty reflects older demographics, we believe that the troop edition reaches a younger audience. Magazine Kedian Aa'e ANAF Times 26 Salute 23 Off Duty 34* * Off puty's Troop Edition reaches a younger demographic, precise median age information is not available. Militaa Maaazine Costs The creative unit for the military magazines is different from that of the base newspapers. This creative unit is a PG 4/C, following are cost estimates for the revised military magazine plan. ANAF Times Salute Off Duty 6 x4z Freg. 4 x's Freq,, 2 x's Freq. C 6-AC A/O /C ~ 2 , PG 41 $93.4M /S25. QM $11. 3M

Jll 26 ' 93 11 :43 LEO BURNETT (15) P. 5 Scheulul We recommend the following schedule for ANAF Times, Off Duty and jalute, developed to maintain our current back cover franchise positions in &W Tixnes. Zasue Dates 1HAF Times Salute (monthly) Off Duty (bi-wrtthly) July 12th (ran) September Ssptesber/October September 6th October November/Decenbar September 20th November October 18th December November 22nd Aecember 20th On sale dates for ANxF Times are one week prior to issue date. sa and Qtf pUtYara on sale two weeks prior to issue date. Alternatiye Nedia Cost SugMxry Both plans stay within the budget. creative will drive the final cost. Option #1 3-PG 2/C 1rCSP 2/C Option #2 3-PG 2/C 1-CSP 3/C Cost $ X $335.2 $368.7 8tidget $ X S'LQ,6 $ 370. 6 Difference $ 35.4 Savings , $ 1.9 Sa.vings Military Media Cost Summnry_ As you can see below, savings are very substantial (Appx. vs. the budget. Th. following section discusses our recommendation for the remaining dollars. ®ption #1 RGP 3-PG 2/C ROP 1-CSP 2/C 6x Frsq. AIW xx Freq. Off Duty Option #2 ROP 3-PG 2/C ROP 1-CSP 3/C 6x Freq ARAF 2Y FrQq. Off Duty 4x Frea. Salute 4x . Salute Cogt $M $278.7 $317.4 Budget with $200K Reserve $K $~9 yg 9597.9 Difference $K $319.2- $280.5 $300M)

,TL.L 26 ' 93 11 :44 LEO aJETT (15) P. 6 Reser4e,Ontions our media cost estimates indicate that the mflitary reserve fund is not required to cover the revised alternative snd military plans costs. While there are other military publications, they tend to skew older and more female and are not recommended for the revised military plan. As discussed previously, additional newspapers are not a priority. Additionally, since creative units run one time per publication, we could not add insertions. Given these factors, we recommend returning the funds to Ka3siline to help meet corporate deals/fund management back covers and franchises. Let's discuss our recommendation for using these r.serve funds at your convenience. Sincerely, LEO sUI2NETT v. S.R. Barb Kittridg Ue Media Buyer/Planner cc: a. Hanrahan, N. Ryan, S. TagethOff, T. Schlax, R. Harris, B. Miller - LBCo.

1998 MARLBO"O ALTERHATIVFJMILITARY MEDIA PLAN SCHEDULE REFLECTS ISSUE DATE d Au wt s epka dw Oc tobe r N wtMn 6.r D.o ernb .r s 12 i. 2E : a s6 t3 ~O s 1s !D u 4 111 w 25 1 0 is 22 26 . sa !0 t7 1993 MILR'AM IAEQIA PLAN SCHEDULE ARAIY NAdY AIFt FORCEfi1w1Et's t1C ' BALUI E (MONTHLtt) aK OfF flUiY (BI-IrAONTHLI) nc 6tp.R'ARY BASE NEWSPAPERS f1NL LIST ~ elC (IITERNAT1VE 1iA9j,}jA pLAN §QHEQULg /ILTERNATiYE NEWSPAt'ERS ( { fULLUOT ~ 4C i ` \ ` ib$f3L8ItiOZ / r ~ ~

JLL 26. ' 93 l i:44 LEO BURNETT (15) P. 8 SALUTE 250,000 BPA AUDITED TARGE,IL SINGLE, ENLISTED MEN 18-28 DIST_IBffl® :. FREE AT MESS HALLS AND BARRACKS FREQUEIICY: 10 ISSUES/YEAR RA_TES: 1992 - 15% DISCOUNT - 10X FREQUENCY (2% INCREASE FROM 1991) PG - 4C $6,500 (1993 SRDS PUBLISHED RATE) EDITORIAL: TRAVEL, MOVIES, SPORTS, RECORDS, TAPES, MILITARY CELEBRITIES, CARS AND MTORCYCLES, SELF-IMPROVEMENT DECEMBER 1990 - MAGAZINE SURVEY . 83% DON'T BUY OR SUBSCRIBE TO ANY OTHER MILITARY MEDIA . 35% SMOKE CIGARETTES . 89% LIVE ON BASE paqe.bk . 89.5% M/10.5% F - 18-20 21% - 21-25 48% - 26-29 24% - 30+ . 8% ' . MEDIAN AGE - 23 21-34

JU. 26 ' 93 11 :44 LEO BI.RNETT (15) ~: 525,000 8PA AUDITED TM=: ROME (72%) AND TROOP (284) EDITIONS , k__.'v., BY RAND AT HOUSING . A REAS AND CObXISSARIES FRZQR=s BI-MONTIiLY $ATES: MAY-DEC 1992 - 10% WORLD WIDE DISCOUNT (4% RATE INCREASE FROM 19'91) 2C $15,413 ($29.36 CPM) 4C $16,699 ($31.81 CPM) P.9 j;QjTDRI7~LS TRAVEL, SHOPPING, SPORTS, DINING AND ENTERTAINMENT . ~04 . _ 4La_kbA- ~ Y~1~i.•v_ t 86% USE CIGARETTES . 81tM / 19%F r MARLBORO 3 3 % - KOOL 10% 62% ACTIVE DUTY - SALEM 74 WINSTON 7% . AGE V. SLIMS 5% - 18-24 13t - 25-34 40* - 35-49 27% N 0 - 50+ 2Q* P N

JLIL 26 '93 11: 45 LEO BLRNETT (15) P.10 S 1

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