Tobacco Documents Online

FROM SUSJECT 0. Co]eman / /" / BROWN & W)LLIAMSON TOBACCO CORPOAATION INTERNAL CORRESPONDENCE (,~- I ' ~,~'~ l'" . j DATE Apr,1 ~0. ]g83~ lobed is the information you requested on cinema advertising. I have arranged this data according to the following classifications; Media and Production. If you have additional questions, please let me know. M.C. /vg attachment C~ *3 U 13

I ( I MEDIA A. AUDIENCE CHARACTERISTICS 1. Adult movie goers skew young and are split 515 male and 49% female. Sixty percent of adult movie goers are between the ages of 18-34. 2. Smoking incidence is average - 36.4% of average adult movie audience smokes as compared with 35.9% of all adults (SMRB - 19Bl) 3. Movie attendance is more frequent among population segments heavily exposed to magazines and outdoor, while it is fairly flat with respect to newspaper reading. Magazines - Index Outdoor- Index Newspapers - Index One or More Movies in 30 Days By Media Quintiles ~i q2 Q3 ~ Q5 135 ~09 99 96 71 128 I08 97 gl 76 106 97 I12 ID6 B6 ( The media skews are consistent with observed age skews. Even though movie attendance drops off in the lightest magazine and outdoor quinti~es, cinema advertisinq will he~ semewhat to deliver impressions to persons current1~ reached at low fre ue~uen~y_ level%, B. CPM/IIITER-I!EDIA EFFICIENCY I. Detailed below are the REV vreighted compositions of movie audiences based on 1981 SMRB data. Composition of CPM Avg. Movie Audience :90 Total Smokers 36,4% $110 Barclay REV 35.4 I13 Belair REV 34.0 I18 Kool REV 41.0 [~ Raleigh REV 33.0 121 Viceroy REV 35.8 109 As expected, the most efficient REV movie audience is for KOOL. Please note, the above CPM's are based on a 90 second trailer. :m (D ¢m

2 ( ( C. 2o On the basis of a 30 second trailer and factored for ad recall scores, cinema advertising becomes an efficient vehicle for B&W. CINEMA REACH I. BWT currently has 4500 (or 33%) of the 14,ogo screens in the U. S, under contract. We are currently working to acquire the screens of General Cinema which account for another 7% (fOOD) of the total screens, plus as many other screens as possible. 2. Potential twelve-month reach for all cinemas is 60% of s~okers at least once. Since BWT has 33% of all ~ie screens under contract, BWT's reach a6ainst smokers would be 20% (60% x .3g). 3. Potential gO-day reach for all cinemas is 25% of smokers at least once. This rate translates to 8% once it is factored by number of screens under contract. 4. Detailed below are reach, frequency and GRPs for all smokers. REACH FREQUENCY GRPs 25% at least once in 30 days 2.5 62.5 42% at least once in go days 4.5 189.0 53% at least once in 6 months l,l 376,g 50% at least once in 12 months 12.5 750.0 This chart highlights the fact that one brand should not use more than six months of cinema durin? any one year. After six ~onths, reach increases only 13% while frequency increases 76%. However, this increase in frequency is primarily against the frequent movie goer. In addition, one brand should not be in sequential flights because of the possibility of ad wearout. L D. EFFICIENCY COMPARISON 1. Detailed below are the CPM's to reach smokers for various media vehicles. Cinema Advertising (JMC est.-30 sec) $28.00 Magazine (pg. 4C)* 6.50 Newspaper (1800 llne B/W)* 22.00 Billboard 3D-sheet (50 GRP)* 2.00 TV (prime time 30 sec.)* ll.lO *C&W estimate based on IgRg cost to reach smokers. Print and out-of-home based on BNT IgB2 plans. TV based on C&W TV cost estimates factored to reach smokers. O~ .j ~m -j

3 C ( L II By combining the s~ker EPl1's and the recall percentages, we can get an idea of the relative cost effectiveness of each vehicle. The following chart shows what I% of recall cost for each vehicle. (Smoker CPM ~ Ad Recall). E, SMOKER AD COST PER I% CPM RECALL RECALL ACHIEVED Cinema 528.00 B2 $.34 Magazine 5.50 13 .q2 Newspaper 22.00 lO 2.20 Billboard 2.DO 6 .33 TV II.I0 23 .4B This chart shews that cinema advertising is as efficient as out-of-home and more efficient than magazines, nevspapers and TV. See Exhibit II for additional cost comparisons, based on each Brand's specific target audience. TARGETING I° BWT currently has the ability to target trailers by ADI. In the future, targeting by trading area will be possible. 2° BWT's trailers will not be shown in conjunction with "G" rated movies. g. The ability to target trailers to specific movies is being explored. However, our trailers win not be run before any movies we consider objectionable (i.e. antithetical in nature). PRODUCTION PRODUCTION REQUIRErIENTS I. Basic production requirements are as follows: • CRI-35mm color negative. (i.e, notched scene-for-scene and color balanced scene-for-scene). • Optical 35mm soundtrack. ' 35mmmixed magnetic stripe mono soundtrack. • 1.85:1 aspect ratio. Flat print for widescreen projection. (m Gm

q ( 2, 3, 4, In additionp it is important for the effectiveness of the B&W Commercial execution that the audio track be on mono for the follo~dng reasons: ' Less than ten (lO) percent of all threatres are equipped with sterio or dolby. This is due to the high cost of such equipment to the theatre. • The majority of theatres have multiple screens. The error factor in getting the dolby/sterio print on the right screen is extremely high. • When a dolby print plays in a mono system there is at least a ten CIO) percent less of amplification. With a loss of ten (I0) percent of the volume the projectionist must manually adjust up. Our experience with this has been disastrous i.e. it is adjsut~d ~ too high o~ too luw and causes audience irritation and complaints. The production of the duplicate trailers will cost approximately $21.00 per trailer or $94m for 45D0 screens. The trailers will last approximately 4-6 ~eeks, so duplicates must be made for each flight. Exhibit I sets out the closing date for each flight in IgBg. BWT has co~itted to be in the flight starting June lO, lg8g. C_ .j C~ -J ~D

.~~ ~ ° ~L~V~i~I~J ~ i ~G Fl~lGll~S |DATE: 7/6/82) EXHIBIT I ( START CAMPAIGN END CAMPAIGN Friday, December 24Thursday, January 20 Friday, January 21 Thursday, February 17 Friday, February 18 Thursday, March 17 Friday, March 18 Thursday, Aprll 14 Friday, April 15 Thursday, May 12 Friday, May ~3 Thursday, June 9 Friday, June I0 Thursday, July 7 Friday, July 8 -Thursday, August 4 Friday, August 5 Thursday, September l Friday, Septemb, r 2 Thursday, September 29 Friday, September 30 Thursday, October 27 Prid,*y, October 28 Thursday, Nsvun~cr 24 Fciday, November 25 Thursday, December 22 CLOSING I)ATE Fri<~ay, Nov%l~bcr 12 Friday, Deon::bu~- 10 Friday, JaI~udry - Friday, February 4 Friday, March 4 Friday, April l Friday, April 29 Friday, May 27 Friday, June 24. Friday, July 22 Friday, August 19 Frld~y, September ]6 Friday, October 14 L * Production material must be recolvcd on or before the closing date,