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N PHII~,PORRIS U.S.A. 120 PARK TO: Selected Managers (Target Markets) FROM: D. Nelson INTER-OFFICE CORRESPONDENCE AVENUE, NEW YORK, N.Y. 10017 DATE: August 11, 1989 SIIBJECT: Marlboro Target Marketing -- November - February Marlboro will conduct a targeted blitz program in Camel's top growth markets. This program is designed to halt Camel's momentum in its strongest markets by reinforcing Marlboro Red's position as the contemporary, macho brand for young adult men (21 - 30). OBJECTIVE Marlboro is, by far, thehumber one selling brand among all smokers, including the young adult target group, and continues to show strong growth. However, Marlboro's frequent advertising and high levels of visibility may have caused the brand to become an almost "expected" part of the environment. Through targeted blitz marketing, Marlboro will shake up the market, break through the promotional clutter, and get consumers excited and talking. Our goal is to remind consumers who have been tempted by recent Camel activity that Marlboro is the market leader. The Brand stands for superior quality, not only because it sets the standard for tobacco flavor, but because it also delivers the highest caliber of promotional activity unmatched by any competitor. Our strategy is to concentrate aggressive promotional effort behind all Marlboro packings, with a particular emphasis on Red. To this point, all Marlboro retail displays should be filled with at least 50% Marlboro Red product throughout this promotional period. In addition, Marlboro Menthol should be featured whenever possible, but should not exceed 15% of total allocation. The blitz activity will include consecutive retail programs, themed bar nights, in-market consumer sweepstakes, and sampling. Additional local events may also be considered. All elements of the program are designed to be involving, fun, and macho. PROGRAM DETAIIS The blitz marketing program includes 4 months (November - February) of activity in 17 target Camel markets. The markets involved are as follows: Corpus Christi- Houston-Galveston- Louisville-Evansville - O Albuquerque. Lake Charles-Monroe- Nashville- Toledo - Atlanta- Spokane- Charleston, SC- r dew:,ter Dallas-Ft. Worth- Shreveport - Winston-Salem -- -Richmond Fr±nt=S-ag-'rnaw-B~y City- Jackson, Miss.- ilzd W QR

A key executional objective for this retail blitz effort is to extend the reach of our retail activity, especially toward young adult, male smokers. The strategy is to reach more smokers by promoting in more pack outlets. Instead of focusing only on high volume pack outlets and repeatedly placing promotions in the same stores, every effort should be made to sell programs into as many pack outlets as possible, including lower volume convenience and convenience/gas stores. In addition, we are allocating increased quantities of displays per Sales Rep relative to previous programs, utilizing smaller display sizes (20 deals and 40 deals) to accommodate smaller accounts, and adding additional displays for Merchandising Reps. Finally, to reach more consumers, we will provide backup quantities of all incentives to refill displays. BAR NIGHTS An important element of the blitz program is the themed bar night activity which allows Marlboro to create a memorable experience. The bar nights are designed to involve young adult men in a fun, contemporary environment. A complete elements memo covering the details of the bar night program will follow separately. Overall, the program will include an average of 2 - 3 bar nights per week per market over a 3 month period (November - February). In summary, regional target marketing is becoming an increasingly important part of Marlboro's marketing strategy. Based on the success of this program, we will use target marketing in the future to continue raising Marlboro's share among young adult smokers. DISPLAY PROGRAM SPORTS GEAR DISPLAY A two pack sports gear promotion will be offered at retail from October 30 - November 24. Consumers will receive a bounceback offer of free Marlboro sweats delivered on two pack sleeves. Sleeves are to be filled at retail by Sales Reps. Each display consists of 40 two pack units. There will be 100% back up sleeves per display. An optional floor base is available for the 40 unit display. Note: It.is imperative that Sales Reps use all sleeves that are provided.

N Consumers must send 25 pack UPC's for either a free sweatshirt or free sweatpants. Fifty pack UPC's must be sent for both. ° Retailers will be paid $3.00 for placement of this 40 unit display. a Sales Reps will be allocated forty 40 unit displays. Merchandising Reps will be allocated twenty 40 unit displays. ° 75% of all sleeves for 100's. 0 ICR Reporting will be for Kings. 25% of all sleeves will be 40 unit 2 pack sportsgear display Brand Code - 10 Promo Code - 549 $3.00 payment a Themed bar nights are to be conducted. WILD WEST T-SHIRT DISPLAY During the January sales cycle (January 2 - 26), Marlboro will offer a free Wild West T-Shirt with a 3 pack purchase. a Consumers will receive a free Marlboro Wild West t-shirt with the purchase of 3 packs of Marlboro. Each 3 pack blister card will contain a bounceback offer for the Wild West T-shirt Collection (each t-shirt is available for $6.00 and 10 pack UPC's). There will be 5 different t-shirts in the Wild West Collection. a This promotion is available to retailers in either a 20 unit or 40 unit display. 0 Payment for the 20 unit and 40 unit are $2.00 and $3.00 respectively. 0 Sales Reps will unit displays. Merchandising Reps will be allocated twenty 20 unit displays. ° 25% back up incentives necessary. will be supplied per display to refill as ICR Reporting 20 unit 3 pack free t-shirt display Brand Code - 10 Promo Code - 553 $2.00 payment 40 unit 3 pack free t-shirt display Brand Code - 10 Promo Code - 554 $3.00 payment be allocated forty 40 unit displays and twenty 20

HOLIDAY PRODUCT OFFER During the December sales cycle (November 27 - December 29), Marlboro will conduct a 5 for 3 promotion. ° Consumers will receive 2 free packs with every 3 pack purchase. ° This promotion will consist of only King size packings (Reds and Lights ) . ° Each display holds twenty-seven 5 pack units. ° Sales Reps will be allocated forty 27 unit 5 for 3 displays. ° Payment for each display will be $3.00 ° The 5 for 3 product should be shipped from Richmond to a designated distributor. 0 Each display will consist of the'following mix: Red Box - 35% Red Soft - 30% Lights Box - 15% Lights Soft - 20% ° ICR Reporting Marlboro 5 for 2 display Brand Code - 10 Promo Code - 555 $3.00 payment Note: Each section is to fax Dee Smith (880-3112), NYO, a shipping list of distributors to receive 5 for 3 product by October 27, 1989. RACING KEYRING DISPLAY A two pack racing keyring promotion will be offered at retail during the February sales cycle (January 29 - February 23). In addition, Marlboro will conduct a consumer sweepstakes giving away a free Camaro IROC-Z (5 cars awarded per market). ° Consumers will rPceive a free keyring with a 2 pack purchase. ° The keyring display will be available to retailers in either a 20 unit or 40 unit display. ° The 20 unit and 40 unit displays carry a payment of $2.00 and $3.00 respectively.

Sales Reps will be allocated forty 40 unit displays and twenty 20 unit displays. Merchandising Reps will be allocated twenty 20 unit displays. 25% back up incentives will be supplied per display to refill as necessary. ° ICR Reporting 20 unit 2 pack keyring display Brand Code - 10 Promo Code - 550 $2.00 payment 40 unit 2 pack keyring display Brand Code - 10 Promo Code - 551 $3.00 payment MARLBORO CAMARO IROC-Z SWEEPSTAKES During the February sales cycle (January 29 - February 23), Marlboro will conduct a sweepstakes to give away 5 Camaro IROC-Z cars per market. Sales Reps will receive sweepstakes header and counter cards to be placed at retail. Consumers must complete an entry form and drop it in the sweepstakes entry box in order to be eligible to win 1 of 5 Camaro IROC-Z cars. Note: Flint-Saginaw, Tidewater and Richmond will not receive Racing Sweepstakes/Retail Program due to state restrictions. /lc Selected Managers Section Operations and Planning Managers Supervisors Senior Account Managers Area Managers Selected Division Managers Selected Retail Merchandising Managers cc: M. G. J. S. Blackwell Chapman Chaump Sabella Selected Region Directors Selected Section Directors