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Youth and Marketing

Winston 1974 Annual Plans

Date: 1974
Length: 68 pages
500373522-500373589
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Abstract

Winston 1974 Annual Plans. Gives marketing and financial plans. Details advertising strategies and expenditures in every media, including production of short films on racing and rodeos. Notes packaging is being redesigned. Targets menthol Winston to Blacks in Black media, and targets Jews through Jewish media. Notes improved blends are being tested. Discusses merchandising of Winston brand items with young adult appeal, sampling, travel club program and event sponsorship. Plans vending machine program to increase trial among young adults.

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Notes

Original document code was 4060.

Company
R.J. Reynolds Tobacco Co.
Marketing Type
ProdDesign
PromoProg
Sampling
Billboard
Coupon
EventSpon
MediaBudg
MovieTr
Packaging
POS
PrintAd
Minor Subject
Advertising and Marketing -advertising copy
Advertising and Marketing -event sponsorship --entertainment event
Advertising and Marketing -event sponsorship --sporting event
Advertising and Marketing -media spending
Advertising and Marketing -packaging
Advertising and Marketing -print advertisement
Advertising and Marketing -promotional item/program
Advertising and Marketing -sampling
Advertising and Marketing -target market --young adult (18-24 years old)
Cigarette -advertising and marketing
Target Market
African American
Jewish
Young adult
Major Subject
Advertising and Marketing
Cigarette
Brand
Winston (RJR)

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WINSTON 1974 ANNUAL PLANS Table of Contents Page Summary 1 Statement of Business 6 Financial Plan 8 Marketing Plan 10 Advertising Copy Plan 19 Media Plan 22 Media Tables 25 Sales Promotion Plan 36 r Promotion Calendar 40 Budget 41 Special Events Preface 46 Racing 47 Rodeo 52 Bowling 57 Summary Budget 61 Other Direct and Gratis 62 Back-Up Section (indexed) 63 ~
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SUMMARY OF 1974 WINSTON ANNUAL PLAN , I. Introduction The major thrust of WINSTON marketing efforts in 1974 will be to establish volume momentum for WINSTON while developing mar- keting tools to insure WINSTON's growth in the future. The strategy and tactics to be employed in 1974 are based on the state of WINSTON's business and the underlying causes as iden- tified in the 1973 review of WINSTON. II. Statement of Business (Major problems and opportunities) A. WINSTON 85 - Volume (+.8%) is increasing at a rate less than that of the industry (+.7$)., therefore, share of market_is projected to continue to decline at a rate of .1-.2 share points annually. The Brand's major competitor, Marlboro, con- tinues to grow at a rate of 10$ to 12% annually. B. WINSTON Super King - Volume (+3.9%) continues to grow at a rate exceeding the industry but less than the 100mm category (+9%). than C. WINSTON Box - Volume (+1 .1%) is projected. to. grow less.n industry and based on the share enjoyed by Marlboro Box,,the Brand's potential is not being achieved. D. WINSTON Menthol - Volume and share of market continue to be stable while 100mm and menthol categories are achieving significant growth (+10% and +5% respectively). III. Major Underlying Causes A. WINSTON 85 and WINSTON Super King - Inability of advertising to generate impact and motivate young adults. B. WINSTON Box - 1. Insufficient Brand awareness. 2. Insufficient distribution. C. WINSTON Menthol - 1. Insufficient Brand awareness. 2. Insufficient distribution. IV. Major Marketing Programs The following marketing programs will be implemented or developed to attack in 1974 the major underlying causes of WINSTON's current business trends as indicated above and to develop marketing tools to insure the Brand's growth in 1975 and beyond: A. Advertising 1. 1974 Activity - In October, 1973, a new WINSTON campaign
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"There's A Lot Of Good" will be introduced nationally and continued into 1974. This campaign is designed to capitalize on the established WINSTON copy line "WINSTON Tastes Good Like A Cigarette Should" by achieving high recall and by motivating young adults without alienating the Brand's current franchise. This campaign will continue unless another campaign is developed which has the proven ability to generate greater awareness and motivation. 2. New Activity - To insure that the most effective adver- tising is being utilized at all times, creative develop- ment assignments have been made to both William Esty and Dancer-Fitzgerald-Sample. Campaigns developed by both Agencies are being subjected to the following research programs to insure their value prior to national introduction: a. Qualitative research (focus groups, comprehension studies) b. Portfolio recall and attitude shift tests c. Mini-market test 1) Day-after-recall tests 2) Campaign Communications Studies d. Test market sales trend analysis B. Media 1. 1974 Activity - During the first half of 1974, the Brand will continue to maintain a highly competitive rate of spending until the effectiveness of the "There's A Lot Of Good" campaign is determined. Working media will be increased by only $300M (+1$) even though rate increases of 5% are anticipated in 1974. The recommended working media expenditure of $24.OMM in 1974 .(vs. $23.714M in 1973) will allow the Brand to maintain its reach and to increase its frequency as indicated below: 1973 Total Combined: lst Half 2nd Half 1974 Reach 84 84 84 Frequency 3.5 4.5 4.8 Additional media expenditures of $1.1MM will be required in 1974 to fund four mini-markets and one full test mar- ket of new campaigns. Total production will decrease by $200M in 1974 ($2.4MM in 1973 vs. $2.2MM in 1974) due to a reduction in the number of ads which will be utilized for the "There's A Lot Of Good" campaign. Total Media and Production will increase from $26.2MM in 1973 to $27.3MM in 1974, an increase of $1.1MM (+4%).
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. St,is.helieved that this rate of exvenditur.e is necessary in order to achieve initial awareness of the new cam- paign and to fully test new campaign developments. How- ever, the effectiveness of the national campaign will be reviewed in the 2nd Quarter of 1974. The review will be based on: a. DAR results (Goal: 15%) b. Campaign Communications Study (Goal: c. Sales Trends (Goal: +4%) 75%) If these measurements indicate that the campaign has the ability to increase WINSTON's volume (and profits) the Brand will recommend that the rate of expenditures be continued. However, if the campaign does not appear to have the ability to increase WINSTON's business, the Brand will recommend that advertising expenditures be reduced to a sustaining rate of approximately $20MM until a campaign which has proven itself through thorough testing is introduced nationally. 2. New Activity - The Brand and both Agencies are preparing media plans for the national introduction of a new cam- paign which has the proven ability to increase the Brand's business. C. Sales Promotion 1. 1974 Activity - All 1974 promotional programs will be de is gned to increase awareness of the Brand's media advertising campaign: a. Those programs specifically developed for this purpose will be the: 1) January-February Generic Primary Counter Prom. 2) November-December Primary Counter Prom. 3) Media Promotions b. Those promotions which will incorporate elements of the campaign but are specifically designed to achieve other objectives are: 1) 50C coupon in selected top 25 markets to generate quality competitive trial., 2) WINSTON Box "Photo Cube" promotion in selected Divisions to increase distribution and trial.
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3. WINSTON Box vending machine placement program to increase trial among young adults. 4. Sampling program to increase trial among young adults. Due primarily to increases in contractual commitments in Shelf Payment Plans and expansion of Sampling and Couponing activities, Sales Promotion expenditures will increase from $10,387M in 1973 to $12,989M in 1974 (an increase of $2,602M). 2. New Activity - The Brand and Agencies are developing promotional programs to support new campaigns when they are introduced nationally. D. Special Events 1. 1974 Activity - The Brand will maintain its current Special Events activities in 1974. However, additional activities and new Special Events will not be implemented until the value of the current programs is determined. Research is currently underway to assist in this deter- mination. Additional expenditures are recommended in 1974 only to the extent that they are required to main- tain the current programs: Special Event 1973 1974 Difference _ $ $ Racing $ 635M $ 745M $ 110M 15% Rodeo 430M 425M (5M) (1) Bowling 244M 251M 7 3 Golf 20M 20M - - TOTAL $1,329M $1,441M $ 112M 8.4% 2. New Activity - The Brand and Agencies are preparing pro- grams to incorporate new campaigns into all Special Events and are considering new Special Events activities to assist in communicating new campaigns. E. Product - Improved blends have been developed by Tobacco Deve opment. 1. Consumer research on WINSTON King is to be initiated 9/21 with final results expected 11/26. Test market results are targeted for 3rd Quarter 1974. 2. Consumer testing of improved Menthol blends began 8/23 with results due 1/4/74. Earliest decision date for national introduction is 3rd Quarter 1974.
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F. Packaging - Redesign of improved packaging has been completed. 1. Management has approved pre-test market research of three WINSTON King alternatives with results expected 1/11/74. Test marketing to commence 3/18 with earliest roll-out decision 10/15. 2. Management authorized pre-test market research on the proposed Super King change results of which are expected 12/28. A test market is planned for 2/18/74 with results expected 9/13. 3. Menthol design approved for national introduction in the lst Quarter of 1974. V. Summary/Timetable For Testing And Development A. Advertising Pre-Mkt. Resrch. t Mini-Market Full Test Market _ Begin Results Begin Earl.Rslts. Beg. Earl.Rslts. Wm. Esty 'Red" 8/2 9/4 10/28 3/1 4/1 10/1 "Sunshine" 8/16 10/31 1/1 5/1 6/1 .12/1 D-F-S "Because ITm Me" 8/10 10/22 1/1 5/1 6/1 12/1 "WINSTON Belongs" 8/10 10/22 1/1 5/1 6/1 12/1 "Feels Good" 8/2 10/22 1/1 5/1 6/1 12/1 B. Product WINSTON King 9/21 11/26 --- 1/14/74 9/13/74 Menthol 8/23 1/4/74 --- 1/21/74 9/20/74 C. Package WINSTON King 8/16 1/11/74 3/18 10/15 10/16 4/15/75 Super King 9/24 12/28 2/18 9/13 9/16 3/14/75 Menthol 9/24 12/28 National Introduction lst Qtr. 1974
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This results in an operating profit before taxes of $190,676M in 1974, a $9,762M (4.9%) decrease versus 1973 ($200,438M).
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STATEMENT OF BUSINESS ti. Total WINSTON's share of market is projected by MRD to decline from 15.6 to 15.5 in 1974, continuing the trend of an annual .1-.2 share point loss experienced since 1970. The share loss in 1974 is due exclusively to a decline projected for WINSTON 85 (from 11.9 to 11.7), which is offset in part by a projected share gain for WINSTON SKS (2.9 to 3.0). Share stability is projected for WINSTON Box (.5) and WINSTON Menthol (.3). Total WINSTON's decline in share of market is caused by the failure of its volume gain (1.3% in 1974) to keep pace with industry growth (1.7% in 1974). WINSTON 85 is projected to increase .8% while healthy volume growth of 3.9% is projected for WINSTON SKS. Outstanding volume increases for WINSTON Box in 1972 and 1973 (11.2% and 10.4% estimated, respectively) are projected to slow to +1.1% in 1974 and a marginal loss (-1.5%) is projected for WINSTON Menthol. WINSTON's shares of the normal flavor category, with the exception of WINSTON SKS showing a .1 gain, are projected to be flat or declining in 1974. Looking toward 1975, in general the foregoing trends are projected to continue, with the major exception that total WINSTON will maintain a share of market of 15.5%. SHARE OF MARKET/CATEGORY (%) Actual/Est. Actual Actual 1973 Est. Est. 1971 1972 Jan.-June Year 1974 1975 Share Of Market: WINSTON 85 12.4 12.1 12.0 11.9 11.7 11.6 WINSTON Box .4 .4 .5 .5 .5 .5 Total King 12.8 12.5 12.5 12.4 12.2 12.1 WINSTON SKS 2.7 2.9 2.9 2.9 3.0 3.1 WINSTON Menthol .4 .3 .4 .3 .3 .3 TOTAL WINSTON Share Of Category: 15.9 15.7 15.8 15.6 15.5 15.5 A. Normal Flavor WINSTON 85 29.1 27.8 27.5 27.2 26.7 26.2 WINSTON Box 1.0 1.1 1.1 1.1 1.1 1.1 TOTAL KING 30.1 28.9 28.6 28.3 27A 27.3 WINSTON SKS 6.5 6.6 6.7 6.7 6.8 6.9 WINSTON Menth.* B. Total Filter Mkt. 1.6 1.5 1.5 1.4 1.3 1.3 TOTAL WINSTON 19.5 19.0 18.7 18.4 18.0 17.7 *Share of NFF including menthol. -6- {
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VOLUME (MILS. OF CIGTS.)/YR. AGO CHANGE (%) Actual/Est. Actual Actual 1973 Est. Est. 1971 1972 Jan.-June Year 1974 1975 WINSTON 85 65,323.7 65,553.1 32,907.4 66,441.7 66,943.8 67,610.8 +1.4% +0.4% +1.1% +1.4% +0.8% +1.0% WINSTON Box 2,250.7 2,502.3 1,356.7 2,762.8 2,792.1 2,819.1 +1.9% +11.2% +14.5% +10.4% +1.1% +1.0% Total King 67,574.4 68,055.4 34,264.1 69,204.5 69,735.9 70,429.9 +1.4% +0.7% +1.5% +1.7% +0.8 +1.0% WINSTON SKS 14,518.8 15,470.8 7,999.6 16,360.3 16,995.1 17,795.1 +9.2% +6.6% +5.3% +5.8% +3.9% +4.7% WINSTON Menth. 1,898.8 1,884.8 948.2 1,895.1 1,865.7 1,867.7 -5.2% -0.7% +0.4% +0.6% -1.5% +0.1% Total WINSTON 83,992.0 85,411.0 43,211.9 87,459.9 88,596.7 90,092.7 +2.5% +1.7% +2.2% +2.4% +1.3% +1.7% Domestic Industry Growth +3.7% +2.8% +2.8% +3.4% +1.7% +2.1% The Brand Group believes that marketing efforts currently in develop- ment, especially with respect to advertising copy, will result in increased volume momentum for WINSTON King (85 and Box) and WINSTON Super King to the point where forecast growth rates of 0.8% and 3.9% respectively,.for year 1974 will be exceeded in 1974 and total WINSTON volume growth will be at least at par with forecast industry growth of 2.1% in 1975. This would result in a minimum WINSTON share of market of 15.5 in 1974 and in a share gain to 15.6 in 1975. O
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I TOTAL WINSTON SUMMARY OF FINANCIAL PLAN ($000) Increase/(Decrease) 1973 1974 $ Sales Un its 87,459.9 88,596.7 Share Of Market 15.6% 15.5$ Net Sale s $890,825 $906,325 $15,500 1.7% Marginal Contribution 286,087 283,268 (2,819) (1.0) Operatin g Profit Before Adv. & Taxes 238,841 233,015 (5,826) (2.4) Advertis ing & Promotion : Agency Expense 26,220 27,335 1,115 4.3 Sales Promotion 10,387 12,989 2,602 25.1 Special Events 1,329 1,441 112 8.4 Other Direct 221 168 (53) (24.0) Gratis 246 406 160 65.0 Total Adv. & Prom. 38,403 42,339 3,936 10.3 Operatin Taxes g Profit Before $200,438 $190,676 $(9,762) (4.9)% Agency E Cigs. xpense Per M $.30 $.31 $.01 3.3% Total Ad v. & Prom. Per M Cigs. $.44 $.48 $.04 9.1% Operatin Of Net Before g Profit As % Sales: Advertising 26.8% 25.7% After Advertising 22.5% 21.0% Total net sales in 1974 are estimated to be $906,325M, an increase of $15,500M over 1973. This increase is due primarily to the fore- casted increase in volume of 1.3% over 1973 and to the carry-over effect of the price increase in 1974. However, the net sales gain of $15,500M is more than offset by pro ected increases in variable costs ($18,319M), fixed costs ($3,007Mj, and promotional expenses ($3;936M). The net effect is that total WINSTON's operating profits before taxes are estimated to decline by $9,762M in 1974. The $18,319M projected increase in variable costs is the result of WINSTON's 1.3% volume increase ($7,855M) coupled with an increase in the variable cost rate ($10,464). Fixed costs are up by $3,007M because of the volume increase ($614M) and a higher rate of fixed costs ($2,393M). The $3,936M increase in promotional expenses is primarily the result of WINSTON's proportionate share of higher - Corporate sales promotion costs projected for 1974 and of an increase in advertising expense for campaign development and testing.
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TOTAL WINSTON FI'XANCIAL STINTE-NMN1' 1971-1975 0 10 Ac tual Forecast 1971 1972 .1973 1974 1975 000 Per M 000 _ Per 1,1 000 Per M ~000 Per M 000 Per M Sales Units (Millions) (Domestic, Excl. Gratis ) 83,992.0 85,411.0 _ 87,459.9 88,596.7-' 90,092.7 Share of ;Sarket 15 . 9 % 15.7% 15.6% 15.5$' . 15.5% Net Sales $842,521 $10.0309 $856,778 $10.0312 '$890,825 $10.1855 $906,325 $10.2298 $921,868. $10.2324 Variable Costs 562,244 6.6940 579,926 6.7898 604,738 6.9144 623,057 7.0325 645,118 7.:.606 Mar-inal Contribution 280,277 3.3369 276,852 3.2414 286,087 .3.2711 283,268 3.1973 276,750 3.07:.8 Fixed Costs 40.068 .4770 42,844 .5016 47,246 .5402 50,253 .5672 53,658 .5956 02eratino Profit Before Advertising & Taxes 240,209 2.8599 234,008 2.7398 238,841 2.7309 233,015 2.6301 223,092 2.4762 Advertising S: Promotion ygency Expense 20,518 .2443 27,584 .3230 26,220.2998 27,335 .3085 27,335 .303, Sales Pro*.r.ot'io^ 7,814 .0930 9,194 .1076 10,387.1188 12,989 .1466 12,900 .143; Srecial.Events 887 .0106 836 .0098 1,329 .0152 1,441 .0163 1,496 . 016~ vt'.:er Direct 202 .0024 187 .0C22 221 .0025 168 .0019 170 .001, Gratis 56 ,C007 76 .0009 246 .0028 406 .0046 421 .004" Total ,. 29,477 .3510 37,877 .4435 38,403 .4391 42,339 .4779 42,322 .4691 Operating Profit Before Taxes $210,732 $ 2.5089 $196,131 $ 2.2963 $200,43E $2.2918 $190,676 $2.1522 $180,770 $2.007 Operatir_g Profi t as % ot :~-et Saies: 5efore Advertising 2 8. 5% . 2•7 . 3% 26.8'l . 25.7% 24.27; After Advertising 25.0 22.9 22.5 _ 21.0 19.6 Z£SE'-LE00S
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WINSTON MARKETING PLAN STRATEGY WINSTON's 1974 marketing strategy is directed toward the accomplish- ment of the following objectives: 1. Generate volume momentum for WINSTON King (Soft Pack/Box) and increase volume momentum for WINSTON Super King to the point where forecast growth rates of 0.8% and 3.9% respectively, for year 1974 are exceeded in 1974 and an increasing growth trend is firmly established. 2. Buttress WINSTON Menthol's volume decline to the extent that a 1.5% loss for 1974 is not incurred. 3. At a minimum, maintain a total share of market of at least 15.5% for year 1974 and return to the Company an operating profit, before taxes, of at least 20% of sales. The Brand will achieve these objectives through aggressive marketing efforts designed to: 1. Increase WINSTON's business among adult smokers under 35 years of age, especially males aged 18-24, with particular emphasis in metro markets with populations of 500M or above. Performance will be measured by comparing future NFO share data with that recorded for the period October 1971 - April 1973, indicating continued or increasing WINSTON weakness in each of these mar- ket segments. 2. Exploit opportunities in selected markets with high potential for target penetration. Objectives of specific programs will be measured on the basis of sales and special market audit data. 3. Maintain the loyalty of WINSTON's older franchise and improve the loyalty of WINSTON King smokers aged 18-24. Performance yaill be measured by comparing future NFO switching data with that recorded for the period April 1971 - October 1972, indicat- ing relative stability in the loyalty rate for total WINSTON King smokers but a weakening trend in the loyalty rate for WINSTON smokers aged 18-24. The effective execution of this strategy in 1974 should establish the necessary momentum in 1975 to achieve total WINSTON volume growth at least at par with forecast industry growth of 2.1%. Thus, while defined specifically for 1974, the aforementioned strategy is also to be positioned as the primary focal point of WINSTON's long-term marketing efforts.
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TACTICS Following is a summary of how the components of WINSTON's marketing mix will be utilized in 1974 to implement the Brand's marketing strategy: I. Advertising Copy The overwhelming conclusion of an extensive historical analyses conducted in 1973 on the differences in market performance between WINSTON and its principal competitor, Marlboro, is that the single major reason for WINSTON's declining growth relative to the dramatic growth of Marlboro is the difference in adver- tising approach between the two Brands and the importance of visual imagery in appealing to a target market of young adults. Management approved the development of a new WINSTON advertising campaign that will motivate young adult smokers, especially males, by positively associating the Brand with values, attitudes and life-styles that predominate among this group but that will not alienate our current franchise. The development of such a campaign is the principal vehicle through which WINSTON's marketing objectives will be achieved long-term. Following is a summary of procedures which have been adopted and steps that have been taken in implementing this campaign develop- ment: A. New Campaign Development 1. A creative assignment has been made to Dancer-Fitzgerald- Sample-Inc. and alternate campaign approaches, developed to date and reviewed by Marketing Management, have been submitted to screening via the focus group technique. A target date for test market introduction of a viable campaign alternative is January 1, 1974. 2. Alternate campaigns have been developed by William Esty and have passed through various stages of pre-market testing. While concept development will continue on an on-going basis, it is expected that a viable campaign candidate will be introduced in test market by October, 1973 (mini-market, one Division). 3. Testing procedures have been adopted to which all cam- paigns will be submitted:a) initial qualitative screen- ing; b) portfolio testing if positive response from qualitative screening; "mini-market" test if portfolio standards are met (portfolio and "mini-market" perfor- mance standards currently being determined); d) full test market if "mini-market" success criteria are achieved. 4. Specific marketing plans for year one national intro- duction of potentially viable test market campaigns are now being prepared by each Agency and the Brand Group.
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As considerable time will be involved in the above development and testing of an effective long term campaign for WINSTON, an interim campaign to combat declines in WINSTON's advertising awareness and to assist in accomplishing the Brand's marketing objectives for 1974 will be nationally introduced in mid-October 1973. The new campaign is designed to extend and revitalize the historical WINSTON theme, "WTGLACS". This campaign will also be in direct competition with alternate test market campaign(s) for final selection of a long-term WINSTON advertising campaign, to be determined on the basis of creative research and sales data. B. National "Lot Of Good" Campaign Subject campaign, representing an offensive repositioning of WINSTON against the young adult market, will be the primary vehicle through which WINSTON's 1974 marketing strategy will be executed, and will be the focal point from which all remaining and appropriate tactical activities will eminate. WINSTON 85, WINSTON Box, and Super King will be supported under the creative umbrella of this new campaign, designed specifically to: 1. Generate impact and increase the level of WINSTON's advertising awareness recorded in February, 1973 at 71%, especially among males and adult smokers under 35 years of age. 2. Communicate effectively WINSTON's taste promise, re- vitalizing awareness of "WTGLACS" in a contemporary and meaningful way. 3. Relate the "good" associated with WINSTON to impressions or a mood-image positively associated with young adult life-styles. Levels of impact will be determined on the basis of recall scores and how they compare with Corporate and previous WINSTON norms; the ability to generate increased awareness will be determined on the basis of a CCS study to be conducted during 1974 in comparison to a pre-campaign study being conducted in September, 1973; and motivational appeal will in part be dem onstrated by portfolio testing which is current- ly underway. The ultimate criterion of success, however, will be the campaign's ability to generate sufficient volume momentum to meet the Brand's marketing objectives for 1974. WINSTON Menthol will continue to be advertised exclusively against the Black segment of the population, an opportunity market of high potential where WINSTON Menthol's share was last reported at .8% compared to a national average of .3%. Adaptions of the "Lot Of Good" campaign are currently being prepared for Black media, and these, as well as other approaches, will be screened among Blacks in focus group -12-
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sessions to assist in determining the creative direction which should be implemented. Moreover, peripheral advertising efforts connected with the Brand's Special Events activities will creatively integrate the "Lot Of Good" format with respective themes to assist in generating awareness for this new campaign. II. MEDIA WINSTON's 1974 Media Plan will be comparable to our 1973 Plan as revised for the period June-December. In accordance with the Brand's marketing strategy to place primary emphasis on young adult smokers, especially males, located in larger metro areas, media have been selected for increased impressions which will effectively reach these market segments without jeopardizing our national weight against the balance of total smokers. In brief, the effect of this plan is that we will: 1. Reach 93% of adult males in the top 25 markets an average of 6.0 times a month compared to remaining markets where reach and frequency among males will be 85% and 5.1 respec- tively. 2. Reach 89% of total adults in the top 25 markets an average of 5.3 times a month compared to remaining markets where reach and frequency will be 81% and 4.3 respectively. 3. Reach 94% of males aged 18-34 7.3 times and 92% of males aged 35+ 5.3 times in top 25 markets; in remaining markets, reach 91% of 18-34 males 6.2 times and 81% of 35+ males 4.5 times. 4. While impressions will be weighted more heavily against males (67% male/33% female) based on the importance of male smokers to WINSTON's potential volume gains, publications will maintain substantial reach and frequency levels against total adult females of 80% and 4.0 respectively per average month. The effectiveness of targeted media emphasis in the top 25 markets and against young adult males, in combination with a commensurate- ly targeted advertising campaign, will be determined in 1974 on the basis of Divisional share and NFO preference data. In order to achieve the reach and frequency figures outlined above for 1974, a spending level of $25,400M* will be required. This,_we believe, will be a sufficient expenditure relative to the needs of introducing our new campaign and of maintaining an offensive_posture,_challenged by a_decline in_forecast share, during 1974. Moreover, Marlboro is currently projected to out- spend WINSTON by roughly $2MM in 1973 ($28MM vs. $26MM), and an additional reduction in WINSTON's recommended budget level for 1974 could further increase our spending disadvantage now esti- *Plational Campaign - excl,udes- testing.
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mated at roughly $1MM-$3MM. However, should it be determined by April, 1974 that anticipated improvements are not being realized from WINSTON's new campaign, media spending would be reduced dur- ing the second half of 1974 to minimize a profit reduction that would otherwise result for year 1974 vs. 1973. WINSTON's "Special" media efforts in 1974, including special events, programs, spectaculars, and ethnic, will remain essentially the same as for 1973, although additional vehicles to extend our reach efficiently, especially to young adults, are now being considered (i.e., Beetleboards; Shopcart Adver- tising). III. SALES PROMOTION The primary objective of WINSTON's national P-O-S and media pro- motions in 1974 will be to reinforce advertising efforts in establishing high impact and awareness of WINSTON's new "Lot Of Good" campaign. The first such effort will occur during the January-February period when WINSTON is scheduled for primary promotional support at P-O-S. The promotion will consist of an advertising extension of our new campaign to in-store exposure via complete utilization of various display materials, the dimensions of which will allow full exploitation of the pictorial format and young adult "look" of this campaign. Following closely on the heels of a mid-October 1973 media introduction, this retail extension of our advertising effort during January-February should assist in establishing campaign awareness in the shortest possible period of time. Additional P-O-S efforts will occur during July-August and tenta- tively during November-December. Given the strong trade and consumer appeal for the free 1973 "HGII" bumper sticker offer and the ability of this device to extend our campaign slogan to the public at large, consideration is being given to rep eating this tactic for the "Lot Of Good" campaign throughout the year as a secondary promotion. While it will not be possible to directly measure the effec- tiveness of these efforts, other than by comments received from Field Sales, the combined effect of media and promotional performance in generating campaign awareness will be indicated by results of a CCS study to be conducted in 1974. In order to provide a direct consumer inducement to enhance qual- ity competitive trial (5 or more packs), a direct mail coupon worth 50~ off on the purchase of a carton of WINSTON will be tentatively scheduled on a selective basis in the top 25 markets no earlier than mid-1974. This should allow sufficient time for awareness to have been developed for the new campaign, and, if as motivating as expected, would improve the potential com- petitive response to the WINSTON cents-off coupon in target metro areas (the efficiency of this device in generating Brand purchase relative to alternate vehicles was demonstrated in an earlier test market). -14-
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Secondary promotional efforts in 1974 will be devoted to: 1. Establishing Sales Force enthusiasm for the new campaign. 2. Building awareness and trial for WINSTON Box and WINSTON Menthol (e.g., "Photo Cube" expansion and P-O-S display in high potential growth markets). Effectiveness of these efforts will be measured on the basis of Divisional volume data and special market store audits. 3. Media-only offers designed to increase impact of "Lot Of Good" advertising subject matter and/or to extend Brand impressions to target market smokers through sales of branded merchandise. 4. Increasing vending distribution for WINSTON Box, based on results of on-going test in California. 5. Sampling of young adults. IV. SPECIAL EVENTS WINSTON's special events activities in Racing, Rodeo, and Bowling will continue to be directed toward (1) enhancing awareness and building business among attendants at these events and fans in general, and (2) providing Field Sales with promotional oppor- tunities to increase visibility at point-of-sale in various mar- kets adjacent to these activities. Support for these events will again include Special Team involve- ment (Cup girls and WINSTON Cars), on-location advertising (banners, etc.) and promotion, P-O-S displays and tie-in consumer offers, and media advertising in newspapers and programs. Out- reach benefits will continue to be afforded via distribution of the WINSTON racing film and negotiations are currently underway for the production of a 10-20 minute film on WINSTON's Rodeo activities. In order to establish a base that will allow us to more accurately assess the value of these activities in the future, a pre-study among racing and rodeo attendants is currently underway to measure variables such as Brand and sponsor awareness, WINSTON prefer- ence share, trial and purchase of WINSTON, fan demographics etc. Results of this study, to be available this fall, will be compared against findings from similar studies to be conducted on a regu- lar basis beginning in 1974. This will allow us to track our penetration among attendants at these events and to compare the results against comparable markets where we have no such Special Event activities. WINSTON's Special Event efforts, initiated in 1971 with NASCAR, will be viewed primarily as a defensive tactic to maintain our above-average market share in the Southeast and South Central U. S., and less as a direct corollary to the offensive posture of our marketing plan in focusing efforts on young adult, urban smokers. However, until more d.efinitive findings of our perfor-
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mance in this area become available, we will maintain the minimum budgetary increases necessary to support these pro- grams operationally. V. PRODUCT To increase conversion potential resulting from trial of WINSTON King and WINSTON Menthol, Tobacco Development has produced improved product candidates for each Brand. NFO testing of all candidates is scheduled this fall with results to be available during the early part of first Quarter, 1974. Most significantly, the improved WINSTON King blend has been developed to give WINSTON a competitive product advantage vs. Marlboro among other NFF smokers, for which there is currently product parity between WINSTON and Marlboro on a blind test basis. Thus, should NFO testing indicate that improved products have indeed been developed, the potential for achieving our marketing objectives of increased volume gains in 1974 could certainly be increased especially if our new campaign is successful in achieving increased trial. VI. PACKAGING Work has also been initiated to update our packaging designs, to improve communication of respective Brand category identities, and to maintain a contemporary appeal, especially among male smokers. WINSTON King package redesigns have been approved for preliminary and market testing to commence this fall, with results to be available during mid-to-late 1974. Again, should findings be favorable, this could eventually result in increased potential for achieving our target gains when implemented as part of a total marketing mix designed in this regard. Packaging redesigns for WINSTON Super King and WINSTON Menthol have also been developed and are ready for presentation to Management for approval of testing. Perhaps most promising of all the WINSTON package redesigns, from the standpoint of immediate sales impact, is the design developed for WINSTON Menthol. Assuming successful performance in prelim- inary testing phases, it is hoped that a national introduction could be implemented in 1974, which, in combination with an improved blend, could have a dramatic and positive effect on the market performance of this low-share Brand. VII. OTHER Peripheral to the core of WINSTON's marketing strategy in 1974 are the following projects currently being investigated or in development to increase our reach and desired appeal among young adults:
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1. WINSTON sponsorship of live, contemporary musical concerts. 2. A WINSTON Travel Club program offering discounted trips in Europe and the U. S. specifically designed to the pre- ferences of young adults. 3. A Merchandising Program to achieve retail distribution of WINSTON branded items with young adult appeal. The above projects are currently under management by the Marketing Merchandising Group and will be part of WINSTON's total potential program in 1974. RATIONALE Following are the main points in support of WINSTON's 1974, near and long-term marketing strategy: 1. WINSTON's strongest potential for achieving volume gains is in metro markets with populations of 500M or above, among adult smokers under 35 years of age, and especially among males. a. Metro markets in excess of 500M population (inclusive of top 25) account for 58% of total cigarette smokers but only 49% of WINSTON smokers. WINSTON's preference share in these markets is 7% - 22% below its national average, - compared to the balance of U. S. where its share is 10% 33% above its national average. Thus, the larger metro markets offer the strongest potential for achieving business gains through competitive conversion. b. While smokers under 35 years of age currently account for 45% of total smokers, the most rapid growth in the smoking population will occur in this age group through 1980, compared to a base year of 1970. On the other hand, the smoking population over 35 years of age is projected to remain relatively flat. Not only do smokers under 35 years of age represent a prime target for commensurate WINSTON growth, but there is NFO evidence that the loyalty of WINSTON smokers in the 18-24 year old age group has been declining (index of 115 in October 1971 to 105 in October 1972) and must be strengthened. c. As male smokers currently account for roughly 70% of NFF category volume, WINSTON will place primary emphasis on increasing gains and improving the loyalty of male smokers under 35 years of age. d. Marlboro, growing at the rate of 10% - 12% a year, is exceptionally strong in each of the above groupings relative to WINSTON. 2. Based on a comparison of the Marketing mix for WINSTON and Marlboro ~, (see WINSTON Marketing review 4/12/73), it was determined that ~ the single major reason for WINSTON's market decline in comparison w to Marlboro's growth has been the lack of an effective advertising -`J w Ln fi -17- 0
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campaign with appropriate appeals to the aforementioned smokers. It was determined that WINSTON should develop these appeals in new advertising copy through (1) generating high impact and awareness among young adult smokers and (2) emphasizing an image, rather than a product promise, that would be associated with qualities such as self-fulfillment, individualism, and mystery/ excitement/romance, etc. This was in accordance with the strongly held values of our target market group as indicated by the Yankelovich Monitor, the image of the Marlboro man which matched these values and the image of the WINSTON "man" which did not, and differences in personality characteristics between WINSTON smokers and the young adult smokers comprising Marlboro's fran- chise. Campaign development currently underway and WINSTON's immediate "interim" campaign have been designed specifically to reconcile these discrepancies, and the media plan for 1974 has been developed to deliver the target group impressions.
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WINSTON ADVERTISING COPY PLAN STRATEGY Following are the near and long term objectives of WINSTON's adver- tising copy strategy to be initiated in 1974: 1. Halt the decline and increase the level of WINSTON's total advertising awareness recorded in November, 1972 at 71%. 2. Establish a WINSTON image which motivates urban and young adult smokers, especially males, without alienating WINSTON's older, less metropolitan franchise. To accomplish these objectives, WINSTON's advertising will: 1. Be intrusive and provocative to achieve reader attention and involvement. 2. Have a visual continuity upon which recognition and awareness can be built. 3. Project a contemporary and compelling image compatibly related to the attitudes, values and life-styles of young adult urban smokers, especially males. 4. Maintain the heritage of WINSTON's superior "taste" premise. The effectiveness of this advertising strategy will be measured on the basis of: 1. Campaign communication studies and how levels of advertising awareness compare with a pre-level of awareness being determined in an August, 1973 study. 2. Advertising recall scores and how these compare with Corporate and previous WINSTON norms. 3. Portfolio testing and the degree to which favorable responses and desired appeals are elicited relative to competitive and other WINSTON advertising approaches. 4. The ultimate criterion of sales effect in the marketplace. TACTICS Steps have been taken in 1973 to implement the Brand's advertising strategy along two avenues of approach: I. New Campaign Development Due to the importance of new campaign development in achieving WINSTON's near and long-term marketing objectives, details of
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this development have been included in the Marketing section of this Plan. In brief, both Dancer-Fitzgerald-Sample and William Esty are participating with the Brand Group in the development and evaluation of alternate campaign concepts based on the above advertising strategy. A hierarchy of testing procedures has been adopted to which all such concepts will be submitted in the future, beginning with focus group sessions and ending, in exceptional cases, with a limited test market. II. National "Lot Of Good" Campaign In order to implement the Brand's advertising strategy pending the above evaluation of alternative campaign approaches, WINSTON will introduce a national campaign beginning in mid-October 1973 which will be based in part on a revitalization of the historical WINSTON theme, "WTGLACS". Because this new campaign will also represent an offensive posture against the young adult market, it will be in direct competition with alternate test market campaign(s) for final selection of a WINSTON adver- tising campaign to be implemented long-term. Following is an outline of the executional format of this new campaign: A. The campaign's primary copy point will be the headline "There's A Lot Of Good Between WINSTON . . . And Should". The purpose of this theme is to relate the "good" asso- ciated with WINSTON to impressions or a mood-image positiv- ly associated with young adult life-styles. This will be accomplished by integrating the copy line and package treatment with the visual imagery of young adult subject matter. B. The secondary copy point will be WINSTON's high-equity slogan "WINSTON Tastes Good Like A Cigarette Should". This will serve as a "Payoff" line to bridge the meaning of the headline copy with the "good" taste and "good" associations related to WINSTON. C. Visual subject matter will establish a unique WINSTON identity through integrating the package, with a transparent effect, into each situation as a primary focal element,, by portraying models via a silhouette technique, and by the consistent execution of a tone or mood that relates to the simple, independent and unaffected instincts of young adults. D. WINSTON King (Pack and Box) and WINSTON Super King will be supported under the same creative umbrella, but one Brand featured per subject, with weight in national media skewed toward WINSTON King.
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E. WINSTON's Jewish advertising will be an extension of the "Lot Of Good" campaign in view of the equally strong appeal expected for this market. WINSTON's Black adver- tising, to feature WINSTON Menthol additional to King and Super King, will be developed as an ethnic translation of "Lot Of Good" or as an alternate campaign depending on results of preliminary testing to be implemented shortly. RATIONALE Following are the main points in support of a visually consistent and image-oriented advertising strategy to accomplish the Brand's objectives of increasing advertising awareness and motivating young adult smokers: 1. WINSTON's advertising, previously emphasizing the verbal communication of copy points, has been declining steadily in levels of total awareness from 86% in December, 1970 to 71% in November, 1972, with little or no awareness of campaign themes. Marlboro, on the other hand, by steadfastly communi- cating the visual imagery of a cowboy life-style and country settings has surpassed WINSTON in generating total advertising awareness of 76% in November, 1972. Thus, the desirability of establishing a readily recognizable and intrusive WINSTON "look" in future advertising efforts is supported by this comparison. 2. Moreover, the value of an advertising image which appeals to young adults is indicated by Marlboro's exceptional growth momentum (10-12% per year), the young-adult skew of its franchise (67% under 35 years of age vs. 49% for WINSTON - of 18 and over smokers), and its increasing share of smokers in younger age groups. The strength of Marlboro's advertising in appealing to this market is further supported by the image of the Marlboro man which is closely compatible with the values, attitudes and life-styles of younger smokers whereas the image of the WINSTON "man", heretofore developed, is not. Thus, in order to increase penetration of the young adult segment of the market, it would appear that a complete repositioning of WINSTON's image via an appropriately executed advertising campaign will be required. 3. Given the social and cultural differences of various ethnic segments to which WINSTON should also appeal, especially in the case of WINSTON Menthol and the Black market, segmented efforts in WINSTON's advertising strategy may be called for.
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WINSTON MEDIA PLAN STRATEGY The objectives of WINSTON's 1974 media strategy are to reach, as effectively and efficiently as possible, a target audience of young adult smokers, especially males, located in the top 25 metro markets while maintaining optimal national weight against the balance of total U. S. smokers. These objectives will be realized by the following coverage result- ing from WINSTON's media mix: Average Month Reach and Frequency Adult Males Adult Females Total Adults Reach Freq. Reach Freq. Reach Freq. Top 25 Markets 93% 6.0 85% 4.6 89% 5.3 Remaining Markets 85% 5.1 77% 3.5 81% 4.3 Total U. S. 88% 5.5 80% 4.0 84% 4.8 Top 25 Markets Remaining Total U. S. Reach Freq. Reach Freq. Reach Freq. Males 18-34 94% 7.3 91% 6.2 92% 6.7 Males 35 & Over 92% 5.3 81% 4.5 85% 4.8 These reach and frequency figures will be achieved through an alloca- tion of.media at a spending rate of $25,400M*. Relative to 1973 (especially lst half), the efficiency and effectiveness of these ex- penditures will be improved through a reallocation of newspaper funds into other media. The effectiveness of our targeted media emphasis in the top 25 markets and against young adult males, in combination with a commensurately targeted advertising campaign, will be determined in 1974 on the basis of pre-post campaign communication studies, NFO preference data, and Divisional share trends. If it is determined in April that desired improvements in advertising and media impact, awareness, attitudes and sales for the Brand are not being achieved, media spending will be reduced in June and for the balance of the year to improve the effect on Brand profits. The following section is an outline of the.Brand's media mix to imple- ment the above strategy in 1974: TACTICS A. Magazines Magazines will provide a broad base of national coverage and will be used as the primary vehicle for reaching our target audience *National campaign - excludes testing. -22-
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of young adult males. A total of 479 insertions in 47 publica- tions are scheduled. In key male weeklies, insertions will appear on an every two-week basis (26 times - 22 pages; 4 spreads), and in key male monthlies, on an every-month basis (12 times - 9 pages; 3 spreads). With the exception of the newsweeklies provid- ing mass male circulation (26.8MM male readers per insertion), 54% to 84% of the male audience of these publications is in the 18-24 age group. Other male monthlies will be scheduled for six insertions (all pages) while remaining magazines (female, general) will have 4-13 insertions (all pages). Insertions in all magazines will be 4-color. B. Supplements Supplements will replace newspaper as a national and local medium, providing greater frequency, improved efficiency and 4-color quality which provides the best reproduction of "Lot Of Good" subject matter. National Sunday supplement insertions will appear on an every two-week basis (26 times - 22 pages; 4 spreads), and in the top 25 markets, an additional 13-26 insertions will be scheduled for a total of 39-52 insertions - every week appearance in 8 key markets and three-out-of-four week appearance in 17 markets. All insertions will be 4-color. C. Newspapers Given the size importance of New York, a special spectacolor effort will be scheduled for the NEW YORK NEWS. This will con- sist of 52 full-page insertions for every week frequency. D. Out-Of-Home WINSTON's print effort, and the reach and frequency afforded, will be reinforced by a schedule of 30-sheet and paint showings. To increase weight in the top 25 markets, #50 poster showings will be scheduled on a 12-month basis to be supported concurrently by a paint effort in 50 key markets, inclusive of the top 25. Additionally, in markets 26-50, a #50 showing will be scheduled for six months on an alternate month basis. For markets below the top 50 with a population of 100M and over (68 cities), the equivalent of a six month, #50 alternate showing will be scheduled. Transit and 6-sheet posters will be utilized on a selective basis in the top 25 markets where 30-sheet positions are either unavailable or insufficient to provide the desired outdoor coverage. E. Ethnic Media In order to deliver WINSTON advertising in the most effective manner to certain ethnic segments of the population, the following efforts will be continued:
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1. Black Media - 35 insertions in 6 Black magazines; 6 insertions in 2 Black Sunday supplements; 5 insertions in 65 Black newspapers; 6-sheet and/or transit cards in 28 markets encompassing 39% of the total U. S. Black population. 2. Jewish Media - 23 insertions in 4 Jewish magazines; 25 insertions in 16 Jewish newspapers. RATIONALE 1. WINSTON's 1974 media mix provides the maximum penetration practi- cal against WINSTON's target audience within the top 25 markets, and especially among young adult males. Because of improved efficiencies reflected in this mix, WINSTON has improved its frequency among the total U. S. population compared to 1973 at a reduced level of spending (84% and 3.5 for lst half of 1973 vs. 84% and 4.8 in 1974). 2. Supplements replace newspapers for national and local coverage because: A. Supplements have proven to be 3-4 times more efficient than newspapers on a CPM/circulation basis and 4-5 times more efficient on a CPM/recaller basis. B. Supplements provide the same reach as newspapers with greater frequency at the same dollar investment. C. Supplements provide quality 4-color reproduction vital to the "Lot Of Good" campaign whereas newspapers do not (excepting spectacolor). _ _ 3. WINSTON's media expenditures will be maintained at_$25,400M,' at least for the first six months in 1974 in order to sustain: A. An offensive posture during introduction of the "Lot Of Good" campaign. In recognition of an effective advertising cam- paign as the principal vehicle through which WINSTON's business objectives will be achieved, it is believed that "Lot Of Good" should have the initial benefit of a spending level comparable to that of the previous campaign against which "Lot Of Good" will be compared. B. Competitive weight relative to Marlboro, estimated to out- spend WINSTON by $1MM-3MM in 1974. As previously indicated, WINSTON's spending level would be adjusted downward beginning in June, 1974 should the new campaign in combination with this media strategy fail to demonstrate desired improvements in advertising awareness and impact.
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WINSTON MEDIA BUDGET CURRENT 1973 PLAN VS. RECOMMENDED 1974 PLAN I 1973 1974 Increase/Decrease MEDIA TYPE $000 % $000 % $ PRINT Magazines $ 6.1 23% $ 7.2 26% $1.1 18% Newspapers 5.1 20 .7 3 (4.4) (86) Sunday Supps 3.7 14 6.4 23 2.7 73 Sub-Total $14.9 57 $14.3 51 (.6) (4) OUT-OF-HOME 30-Sheet Posters $ 3.8 15 $ 4.3 16 .5 13 Paint 3.5 13 3.8 14 .3 9 Transit .2 1 .2 1 - - Sub-Total $ 7.5 29 $ 8.3 31 .8 11 ETHNIC MEDIA .Black Print .3 1 .3 1 Black 6-Sheet .4 2 .4 2 Jewish Print .1 - .1 - Sub-Total .8 3 .8 3 SPECIAL EVENTS/ SPEC. (Total) .5 2 .6 2 .1 20 TOTAL WORKING MEDIA 23.7 91 24.0 87 .3 1 NEW CAMPAIGN MEDIA .1 - 1.1 4 1.0 1000 TOTAL MEDIA 23.8 91 25.1 91 1.3 5 PRODUCTION Current Campaign 1.8 7 1.4 6 (.4) (22) New Campaign Testing & Development .6 2 .8 3 .2 33 TOTAL PRODUCTION 2.4 9 2.2 9 (.2) ( 8) TOTAL AGENCY EXPENSE $26.2 100% $27.3 100% $1.1 4% w J w ~ -25- ~
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P._ J. ;~~;V;;ClI:OhC' O~G(_':N1 i~'a tt I. Ton 2 5 I OUt `'l3.G £` ! r 1! i.4 (~ ~ .;,,.... 3..'( '?.0 . 7.2 4.2 • , 1 + ,, Y-f~ ~' 2•J 3 •3 t7 •/ •7 ~ .2 .2 .2 .. oL ~~, :t;;. r: .~ 7.a j` C:p P , rr~ .,.,w li: : w Ln -26- rz
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H. J. REYNOLDS TOBACCO COMPANY ALTERNATE WINSTON 1974 MEDIA PLAN WINSTON VS. MARLBORO MAGAZINE SCHEDULE COMPARISON ALTERNp.TE WINSTON MARLBORO TOTAL BUDGET (000) $7,200M $9,200M Total Magazines Back Covers/Pages 414 264 Spreads Total Insertions 479 358 g Distribution of Adv. Weight Adult Male 62 Adult Female 33 38 Adult Men By Age % % U.S. Adv. WSt. Index Adv. nt. Index 18-34 27 55 17~ 45g ~75 35+ 3 4 3 Audience Estimates - Average Month Reach Avg. Freq_ o Reach Avg. Freg. Total Adults 63 3.0 66 3.0 Adult Men 73 3•6 12 3•5 Adult Women 53 2.2 0 2•4 Qn 0 0 w v w William Esty Company Media Department -27- 8/29/73 N ~
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R. J. REYNOLDS TOBACCO CO_MFANY ALTERNATE WINSTON 1974 MEDIA PLAN AUDIENCE ESTIMATE - AVERAGE MONTH Total Adults Men Women Men 18-34 Men 35+ ~ Avg. . ,6 Avg. ° Avg. jo Avg. Avg. each Fre . . Reach Freg. Reach Freq. Reach Freq. Reach Fre . Magazines 63 3•0 73 3.6 53 2.2 85 4•6 66 2.9 Top 25 Metro Areas Supplements 77 3•7 79 3•7 76 3.6 79 3•7 79 3•8 Two Media 89 5•3 93 6.o 85 4.6 94 7•3 92 5.3 Re:nainin upp ements 62 2.6 64 2.7 61 2.6 64 2.6 64 2.7 Two Media 81 4•3 85 5.1 77 3•5 91 6.2 81 4.5 Total U. S. 84 4.8 88 5•5 8o 4.0 92 6.7 85 4.8 William Esty Company Media Department 8/29/73 ISSF LEoOS
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R. J. TGf!ACCC ti,iT~S?'::;_1 Cj 7.0, Paint 30-11hpets t'ar az i n e s Su^p1elments Ner,snaaers RemaininF COH % QTR . lct n.. i : :. .9 ~ .O 2.2 l..~ 2.3 1.9 1. ~ ~~ 1.. 7 .L ~ 6.6 .2 ..~. ~.... ~= ?.0 .9 Vi . . ,. !• 7 ~).C .^ y • . V.. ` r:aoes r:ot inch:c'e p*•oduc t: cr: sYr:cial ::~,~ents s etc. v.v) , t r` f + . ~. ~ ..e • y r'1 :r~ ?;sty Cor-^ar,:ti~ ?'e~=•^ _ . E-::t: ~{j, 397,
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R. J. REYNOLDS TOBACCO COMPANY WIN STON ALTERNATE 1974 MEDIA PLAN Ex enditure jo or ing Nr,M Media M~iaazines - 4 color bleed * 7.2 30 insertions in 4 publications 11-T back covers, a spreads, 298 inside pgs. ~(1UARTF.RLY INSERTIONS 1 2 4 Total News/and Sport Weeklies 7** 6** 7 6 26 Key Male Monthlies 3** -3* 3 3 12 Other Mlale 1`"onthlies 3 1 Ot'ner Sel ective Weeklies 4 3 3 3 13 Farm & Fraternal 1-2 1-2 - - 2-4 **Includes 2 spreads *Includes 1 spread Supplements - 4_color National 26 insertions 22 pages and 4 spreads in arade, Sun. Metro, Family Weekly and 6 Indenendents 426 papers, 46,755M circulation Ke 8 Metro Areas in Ton 25 2 p ages in Sun. h;etro and Independents 18 papers, 11 b 01d circulation Select,ed 17Metro Areas in To~.• 2 ~j papes in Sun. Metro and-Indel::endents 22 papers, 10,412M circulation 4.4 1.4 .6 Total Independents QUfiRT12tLY IT1SEiiTIONS U--4 27 National 7'~ 6** 7 6 26 K_ ey 8 6 7 6 7 2G Selected 17 4 3 3 3 13 *rtInclud es 2 spreads Newst)aners N.Y. hews - Spectacolor insertions - 52 1,7841-1 circulation .7 3 0 0 w ,.J w ~ ~ Willi~su }aty Company Media I)epartment -30- 8/29/73
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R. J. REY"''.OLDS TOBACCO CUNP1tNY w ta'I NST011 ALTETiNATE 1974 MEDIA PLAN Expenditures ;; P,orking YM Me d i a Out-of-Home Paint 3~1 units in ~0 markets ~0-Sheets 750 Showing in top 25 markets (66 Cities) for 12 mos. ( 0.2.M) #50 Showing markets 26-50 (30 Cities) for 6 alt. No. ($.5) #25 Showing for 12 months in markets of 100I~i+ Pop. (68 Cities) 4.6) $3•8 4.3 Remaini0ut-of-Home Jr. Panels - 300 units in N.Y. for 6 alternate Months. Subways - 1/2 run in N.Y. for 6 alternate Mos. TDI - 1/2 run in N.Y. for 6 alternate Months BPRT -ff~100 showing in San Francisco for 6 alternate months utilizing car cards, Piers and 6-sheets Total Out-of-Home Ethnic Black Nagazines - 3~ insertions 6 publications Supplements - insertions 2 publications Newspapers - 5-600/300 li. 65 papers 6-Sheet s - 12 month s 28 markets Transit - 4 month s 6 market s Jevi sh .2 U .3 35 Magazines - 23 insertions 4 publications .1 Newspapers - 25 insertions 16 papers Total Ethnic j,lilliam Esty Company Media Depart,ment August 29, 1973 -31-
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R. J. REYNOLDS TOBACCO COMPANY WINSTON ALTERNATE 1974 MEDIA PLAN Special Events/Spectaculars Ex enditures Working MM Media Nascar - B&W Newspapers $ .1 Rodeo - B&W Newspapers .1 Smoke Rings - 12 Mos. N.Y. & Chicago .2 Misc. ProLrams - Beseball, Rodeo & Auto Racing .1 Films & Smoke Ring Expansion .1 Total Special Events/Spec. $ .6 Total Workin Media 24.0 Production 2.5 Total Budget $26.5 2 100,0Z - Ln 0 0 w .J w ~ William Esty Company Media Department August 29, 1973 s -32-
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R. J. REYINCLDS TC13A CCC CCA,PAi;r ALTERNATE.'..WINSTON .197a r;EllZA PLAN 14tiGA~INE PLAN TGTaL PUBLICATIONS BC PAGES SPREADS IJUSF.FcTIGNS NE'.'S'WEEKLIES & CTf?ER :'1EEKLY , R} - 26 26 NWSY: EEK 2 20 26 SPORTS ILLUSTRATED 2 20 4 26 SPORTING ;v'EWS 8 18 26 TIk~ . 3 19 4 26 USN & WR 4 26 VFW TIWS (BI-WEFKLY) ~ ~II 1F 169 KEY P;ALE MONTHLIES CAR CRAF 1 8 3 12 CAR & DRIVER - 9 3 12 CYCLE - 9 3 12 ESQUIRE - 9 3 12 GALLERY - 9 3 12 HOT ROD - p 3 12 NOTCR TREND 1 ~ 3 12 oUI 1 8 3 . 12 r ENTHOUSE - q 3 12 PLAY'30Y 1 8 12 RCAD ~'. TRACK 1 8 3 SPORT 1 8 x 12. ~ % 4 CTFER VJLE h'.GNTNLIES t, RGOSY 2 4 6 DELL A.EN 'S GRP.( 2) 6 6 FIELD & STREAM 1 5 G ~ VECHANIX ILLUSTRATED 2 4 0 OFFICIAL DETECTIVE GRP. (3) 6 6 CUTLCCR LIFE 2 4 b PCFUL.:R MECHANICS 1 6 POPULAR SCIENCE ~ 6 SAGA 6 6 SPCRTS AFIELD 1 5 E TRUE 2 4 6 CENTURY SPORTS I=ACY.kGE (5) 4 GOLF f 2 ~ i ~ F
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H. J.":EYNC L:;"- -A a:.;,cC cc,rJ.; NT ALTERNATF WINSTON.1974 MEDIA PLAN D~AG/ZI"E FI,AN PU';LICATIGIvS BC -FAGES SI'REAUS TOTAL I1ISERTICFS C:'1'E t SELECTI VE `rIEEKLIES/M0. fir GUIDE 3 1~ - 13 rdE',;r YORK - - 13 ' 13 GRIT - 1 1 VIVA 3 7 ~ FAW.: & F:?.4TER?rAL 4.E;t 1 C!: A LEG IJN 2 2 F A~ql•: JOt'R:~hL 3 LEh :':'' Er{l:ECK PRCGRESSIVE FARI.ER 44 TOTAL 47 PUBLICATIONS 116 298 65 479 -34- ~ vii llJ-3ta Estv caarmv Modi;i T)prna r.mD.,r. , - . .. .. Q_A.nrnY ---
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R.J. REYNOLDS TOBACCO C0MPANY WINSTON ALTERNATE 1974 MEDI + PLAN TOP 25SUNDAY SUPPLE14'.,h'T MIA.RKLT PLpN Key 8 Metro Areas New York (Consolidated) Lot Angeles (Anaheim) Philadelphia Boston (Worcester) Selected 17 in Top 25 Chicudo (Consolidated) Detroit Dallas (Ft. Worth) Pittsburgh St. Loui R Baltimore Cleveland Houston Atlanta San Francisco/Oakland (San Jose) Minneapolis/St. Paul Washington, D.C. San Diego Seattle-Everett Milwaukee Cincinnati Buffalo Miami Kansas Cit y Denver Indianapolis -35- William Esty Company Media Department 8/29/73 L, 0 0 w .r.1 w Un LA -A
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. c.: iW'fMl 1 l1A.1A#A11'^v"&iti.#+ WINSTON SALES PROMOTION PLAN STRATEGY Following are the objectives of WINSTON's 1974 sales promotion strategy: 1. Primarily, to reinforce advertising efforts in establishing high impact and awareness of WINSTON's new "Lot Of Good" campaign. 2. To stimulate directly quality competitive trial (5 or more packs) in the most efficient manner possible in markets of highest WINSTON growth potential. 3. To increase competitive purchase and awareness of WINSTON Box (NA% and 45% respectively) and WINSTON Menthol (2.3% and 42.3% respectively). 4. To assist in associating WINSTON with a young adult lifestyle or image. To accomplish these objectives, appropriately designed sales promotion efforts will be implemented at retail, in media, and in opportunistic areas of special Brand potential. Programs will be evaluated on the basis of Sales Force feedback, campaign communication studies, print recall tests, Divisional share and volume data, special store audits, and consumer research. TACTICS Following are the particular retail, media, and opportunistic programs now planned to implement the Brand's sales promotion strategy in 1974: I. Retail Programs A. In order to generate Sales Force enthusiasm in support of the new WINSTON "Lot Of Good" campaign, a special Field Sales letter is now being prepared which will explain the strategy of this campaign. Additionally, a reprint of the first campaign ad, "Holding Hands", will be included with each Sales letter. •B. WINSTON's first primary point-of-sale promotion is scheduled for the January-February work period. This will consist of an advertising extension of our new campaign to in-store exposure via complete utilization of various display materials (pasters, upright and low-profile riser cards, shelf strips, and high-impact carton merchandiser cards). The dimensions of these materials will allow for full exploitation of the pic- torial format and young adult "look" of this campaign, and Ln 0 -~ -36- c~'n ~ ,~
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following closely on the heels of a mid-October, 1973 media introduction, should assist in establishing campaign awareness in the shortest possible period of time. C. WINSTON's next point-of-sale effort is a secondary promotion to : be worked throughout 1974. Again, this will consist of an _ extension of our advertising campaign via P-O-S display materials, but limited to upright riser cards in accordance with procedures for secondary promotions. Consideration is now being given to a duplication of the 1973 "HGII" free bumper sticker offer, given a positive consumer response and the ability of this device to extend our slogan to the general public. D. As an override to the P-O-S effort mentioned above, a supplemental program to provide a direct stimulus to quality competitive trial (5 or more packs) will be implemented on a selective basis in high potential WINSTON growth markets during July-August. This will consist of a direct mail coupon offer (50~ off on carton of WK and/or WSKS) in 9 of the top 25 metro markets where WINSTON's market share is below its na- tional average and where its share index is at least 17 points below the share index of the NFF category-- representing high potential for business gains through additional competitive conversion. This cents off coupon will be the most efficient vehicle for generating quality trial relative to alternate WINSTON promotional vehicles (approximately $2.80/competitive redemption in test of couponing vs. $5.75/competitive redemption for WINSTON Sweepstakes vs. $11/competitive redemption for RJR premium offers) and, considering implementation 9-10 months after the introduction of our new campaign and the inherent motivational values hoped for, should re- sult in considerable potential for competitive conversion. E. WINSTON is scheduled for a third promotion at point-of-sale, its second with primary status, during the November-December work period. While a primary effort will be budgeted for, the nature of this promotion will not be determined until more definitive findings as to the performance of the "Lot Of Good" campaign and the status of test campaign(s) become available (2nd Qtr. 1974). For example, should it be deter- mined that a test campaign is to be introduced nationally to replace the "Lot Of Good" campaign in 1974, the November- December promotion period would be used to support this introduction at retail. F. Additional to the foregoing efforts, the following retail related programs will be tested: 1. An on-carton WINSTON "matchbox" offer during May-June. To determine whether a low-cost incentive would assist in moving extra display product from multibrand floor base displays. Expansion of this offer would be con- sidered for use during the Labor Day and/or Christmas work period.
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2. Use of "Shopcart" advertising as a permanent in-store medium to generate additional campaign impressions (test Jan.-Feb.). To determine whether advertising and Brand awareness among food store shoppers exposed to this medium would be increased and whether any impulse value afforded by this exposure would result in additional sales. Expansion would be considered on a selective basis in a segment of the top 25 markets where potential for competitive penetration would be highest. 3. Test of a product refund offer during July-August (e.g., $1.00 coupon toward purchase of carton for three proofs- of purchase). To determine the efficiency of a refund offer in generating quality competitive trial as a possible alternative or supplement to direct mail coupon offers. Expansion would be considered during a primary promotion period in 1975. 4. Test of branded "Hot Cups", distributed via vending machines, to be initiated in January. To determine efficiency of this medium and the effectiveness of the channels used in maintaining a total "presence" for WINSTON as an alternative or supplement to our current use of matchbooks. II. Media-Only Programs A. To assist in reinforcing impact of the."Lot Of Good" campaign by increasing readership of certain print ads, two spread size puzzle offers, comparable to those conducted in 1973, will be scheduled for print insertion during March-April and September- October. Performance criteria will be recall scores in excess of the 8% Corporate norm achieved for standard spread-size ads (27% recall for 1973 Pajama Sunday puzzle ad). B. To reinforce the "Lot Of Good" campaign theme and to extend Brand impressions to target market smokers through sales of branded merchandise, a media offer, comparable to the 1973 "Fancy Pants/Happy Hat" offer but including alternate or additional summer items, will be scheduled for print insertion during May-June. This should have added value in enhancing the awareness and sales of these, plus other WINSTON items, that will be sold at beaches and other select locations via our merchandising program. III. Opportunistic Programs A. To stimulate additional volume momentum for WINSTON Box, up 13% YTD in 1973, an expansion of the "Photo Cube" offer originally scheduled for September 1973 will be rescheduled in 28 high-potential Box Divisions during July-August (Divi- sions where Marlboro Box outsells Marlboro Soft Pack by 2:1 ratio). Gains should be achieved through increased distri- bution for the Brand and from corresponding increases in consumer trial and awareness resulting from display of the free "Photo Cube" (2.5%-3% cumulative volume gain vs. control 6 months after initial test). -3 8-
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B. To increase trial and awareness of WINSTON Menthol, an opportunity effort in high-potential Black markets will be scheduled during July-August. This may consist of a specially designed point-of-sale piece for Black market outlets and/or a second Menthol coupon mailing should the preliminary results of a 1973 mailing, to be reported in November of this year, demonstrate that significant benefits could be received. C. To reinforce media and promotional efforts in associating WINSTON with the young adult maxket, our sampling program at selected locations where young adults congregate (e.g., beaches; college towns) will continue to be expanded in 1974. It is expected that this tactic in combination with a total repositioning of the Brand against young adult smokers will be of substantial benefit in penetrating this market on both a near and long-term basis. RATIONALE in recognition of high business potential represented by metro and young adult markets and of an effective advertising campaign as the primary vehicle through which such potential will be realized, WINSTON's 1974 sales promotion strategy has been designed to provide corollary support to help reinforce the new "Lot Of Good" campaign and/or to stimulate trial and purchase among urban/young adult smokers. Additionally, we have planned special programs for high-potential market segments in order to capitalize on respective opportunities and to optimize the efficiency of our sales promotion expenditures. ~ 0 0 w .~ v
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wIN_^,TON C1GAR}•.°ITES I'ROMOTION PLANNING CALENDAR 1974 PROMOTIO:7 CATEGORY SALES FOP.CE PR1MAkY (SALES-MEDIA) 0 SECONDARY* MARCII APRIL MAY JUNF JULY AUrI)ST_ SE)'T, n('T. _ pOV. D1:CL i B) Photo CONSUMER M1:D1A U;7LY TEST JANUARY FE1iRUARY "Lot Of Good" Generic P-O-S ~ - - --- A)Shopcart Adv. ,B)"Hot Cups" Adv. 7- S.L.O. Cempniryrj ~ S.1„O. I Puzzle I A)Coupon drop Cube I Prindnd Suem- ! I II mrY 1lrm., 1 +1 :+ ~I~Iy~~ ~ Free on- ;Product ~ carton iRefund "Matchbox" Offer ~ Offe _Jr *WINSTON 1-carton cards for secondary throughout year. t9SE Ll:vUi TBD-Possible I P-O-S supportt for intro9uc-l I tion of now campaign. I
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1'OTAL_WlNS_TON 1974 SA1.,ES PROMOTION BUDGET P-O-S Items: Pasters Decals Calendars Thermometers Carton Cards Shelf Strips V. M. Inserts (1) TOTAL P-O-S Reserve (2) Testing Vending Test Art Work Special Promotional Material Nov/Dec Offer Sampling Girls Sampling-Miscel]aneous Shopping Cart Winston Photo Cube Golf Test "Box Seat" Sweepstakes Sub-Total Special Events: NASCAR Auto Racing Rod eo Bowling Total Special Events Coupon Program TOTA L BRAND CONTROLLED Shelf Display V. M. Display O. T. C. Display Allow. I`loor /Stacker Di sp. Allow. Consumer Offer Non-Assignables Military Carton Loaders Sub- Total Est. 1973 $ ?,, 754 90,000 60,000 37,005 71, 000 1,241 35, 000 297, 000 57, 000 30, 000 200, 000 75, 000 172, 000 75, 000 17,000 40,000 963, 000 341,000 304,000 36, 000 681, 000 235, 000 1,879, 000 3, 528, 000 1,813, 000 245, 500 454, 000 233, 830 1,941, 000 293, 000 Budget 1974 $ 8, 000 205, 500 60,000 33,000 25,500 1,700 333, 700 95, 000 60,000 40,000 200,000 60,000 360, 000 180,000 50,000 70, 000 1,448, 700 - 269,805 227, 825 18, 000 515,630 520,000 2,484,330 Increase - 4,005 - 45, 500 + 459 - 35, 000 4 36, 700 + 95,000 + 60, 000 - 57, 000 + 10,000 - 15, 000 4.188, 000 +105, 000 + 50, 000 + 70,000 - 17,000 - 40,000 +485,700 - 71,195 = 76, 175 - 18,000 -165, 370 +285, 000 +605,330 (Decrease °'o + 19 0. 5% + 127. 7 - 10.8 - 64.1 + 37. 0 - 100. 0 + 12.3 + 100. 0 + 100. 0 - 100. 0 + 33. 3 - 2. 0. 0 + 109.3 + 140. 0 + 100. 0 + 100.0 - 100. 0 - 100.0 + 50.4 - 20.8 - 25. 1 50. 0 - 24. 3 + 121.3 + 32.1 + 7. 5 + 9. 2 + 103.6 - 4.2 + 6.0 + 46.2 + 27. 6 + l 0 0. 0 + 23.4 8, 508, 330 3, 791, 550 1,980,300 500,000 434,700 248, 020 2,837,835 373,840 338, 100 10, 504, 345 +263, 550 +167, •300 +254, 500 - 19, 300 + 14, 190 +896, 835 480, 840 +338, 100 + 1,996, 015 + 2,601,345 $10, 387, 330 $1 ?., 988, 675 GRAND TOTAL 9/r2/73 + 25. 0 L4 0 0 w J w u, ~
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TOTAL WINSTON 1974 SALES_PROr10'1`lON HUDGET Est. Budget Increase (Decrease) P-O-S Items: 1973 1974 ~V $ Pasters $ 2,754 $ 8,000 $+ 5,246 +190.5% Decals 90,000 205,500 + 115,000 +127.7 Calendars 60,000 60,000 Thermometers 37,005 33,000 - 4,005 - 10.8 Carton Cards 71,000 25,500 - 45,500 - 64.1 Shelf Strips 1,241 1,700 + 459 + 37.0 V.M. Inserts (1) 35,000 - - 35,000 -100.0 I , TOTAL P-O-S 297,000 ' 333;700 36,200 + 12.3 Reserve (2) 95,000 + 95,000 +100.0 Testing 60,000 + 60,000 +100.0 Vending Test 57,000 - - 57,000 -100.0 'Art Work 30,000 40,000.. + 1.0,000 + 33.3 ISpecial Promotional ~ Material 200,000 200,000 Nov/Dec Offer 75,000 60,000 - 15,000 - 20.0 Sampling Girls 172,000 360,000 + 188,000 +109.3 Sampling-Miscellaneous 75,000 180,000 , + 105,000 +140.0 Shopping Cart 50,000 + 50,000 +100.0 1 ,Winston Photo Cube 70,000 + 70,000 +100.0 ~ Golf Test 17,000 17,000 -100.0 "Box Seat" Sweepstakes 40,000 40,000 -100.0 `Special Events: NASCAR Auto Racing 341,000 269,805 - 71,195 - 20.8 Rodeo 304;-000 '227,'825 - 76,175 - 25.1 BQwling 36,000 18,000. - 18,000 - 50.0 Total Spec.Events 681,00 0 515,630 - 165,370 - 24.3 .Coupon Program 235,000 520,000 + 285,000 ' +121.3 TOTAL BRAND CONTROLLED 1,879,000 2,484,330 • + 604,83 0 + 32.1 ~ Shelf Display 3,528,000 3,791,550 + 263,550 + 7.5 V.M. Display 1,813,000 1,980, 300 + 167,300 + 9.2 ~O.T.C. Display Allow. 245,500 500,000 + 254,500 +103.6 Floor/Stacker Display ~ Allowance 454,000 483,000 + 29,000 + 6.4 ~Consumer Offer 233,830 248,020 + 14,190 + 6.0 iNon--Assignables 1,941,000 2,837,835 + 896,835 + 46.2 I !Military 293,000 373,840 + 80,840 + 27.6 ICarton Loaders 579,600 + 579,600 +100.0 Sub-Total 8,508,330 10,794,145 +2,285,815 + 26.8 GRAND-TOTAL $10,387,330 $13,278,475 +2,891,145 + 27.8
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Est. Budget Increase Decrease P-O-S Items: 1973 1974_ ----~r-- -_^~ Pasters $ 2,754 $ 8,000 $+ 5,246 4-190. 5% Decals 90,000 192,500 ' + 102,500 +113.9 Calendars 60,000 60,000 Thermometers 37,005 33,000 - 4,005 - 10.8 Carton Cards 53,000 15,000 - 38,000 - 71.7 Shelf Strips 1,241 1,700 + 459 + 37.0 V.M. Inserts 20 _000 _ 20~ 000 -100J0 TOTAL P-O-S $ 264,000 $ 310,200 + 46,200 + 17.5 Reserve $ 75,000 $+ 75,000 4100.0 Testing 45,000 + 45,000 4-100. 0 Vending Test $ 57,000 - 57,000 -100.0 Art Work 24,750 30,000 + 5,250 + 21.2 Special Promotional Materials 124,750 150,•000 + 25,250 + 20.2 November/December Offer 74,500 45,000 - 29,500 - 39.6 Sampling Girls 172,000 360,000 + 188,000 -}-109. 3 Sampling-Miscellaneous 75,000 180,000 + 105,000 +140.0 Shopping Cart 50,000 + 50,000 +100.0 Winston Photo Cube 70,000 + 70,000 +100.0 Golf Test 17,000 , - 17,000 -100.0-- "Box Seat" Sweepstakes 40,000 - 40,000 -100.0 Special Events: NASCAR Auto Racing 341,000 269,805 71,195 - 20.8 Rodeo 304,000 227,825 76,175 - 25.0 Bowling 36,000 18,000 18,000 - 50.0 . Total Special Events $ 681,000 ~ $ 515,630 $- 165,370 - 24.2 Coupon Program 351000 _520,000 + 485,000 +1385.7 TOTAL BRAND CONTROLLED _ $1,565,000 $ 2,350,830 $+ 768,830 + 48.6 Shelf Display $2,646,000 $ 2,983,000 $+ 337,000 + 12.7 V.M. Display 1,428,200 1,558,000 + 129,800 + 9.0 O.T.C. Display Allowance 184,000 375,000 + 191,000 +103.8 Floor/Stacker Disp. Allow. 340,500 380,000 + 39,500 + 11.6 Consumer Offer 184,200 195,130 + 10,930 + 5.9 Non-Assignables 1,460,000 2,232,100 + 772,100 + 52.9 Military 219,750 294,120 + 74,370 + 33.8 Carton Loaders 456,000 + 456,000 Sub-Total $6,462,650 $ 8,473,350 $+2,010,700 + 31.1 GRAND TOTAL $8,027,650 $10,824,180 $+2,796,530 + 34.8 WINSTON 85,iM & BOX 19 74 SAIT:S PROMU'I'lOV rUnGET
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WINSTON 85 & CP Box 1974 SALES PROMOTION I3UDGET Est. Budget Increase I DccreascL 1973 1974 ^To P-O-S Items: Pasters $ 2,754 $ 8, 000 $+ 5, 246 + 190.5% Decals 90,000 192, 500 +102, 500 + 113.9 Calendars 60,000 60, 000 Thermometers 37,005 33, 000 - 4,005 - 10.8 Carton Cards 53,000 15, 000 - 38, 000 - 71. 7 Shelf Strips 1,241 1,700 + 459 + 37.0 V. M. Inserts 20,000 - 20,000 - 100. 0 TOTAL P-O-S 264, 000 310,200 + 46,200 + 17.5 Reserve 75, 000 + 75, 000 + 100.0 Testing 45, 000 + 45, 000 + 100.0 Vending Test 57, 000 - 57, 000 - 100.0 Art Work 24,750 30, 000 + 5,250 + 21.2 Special Promotional Materials 124, 750 150, 000 + 25,250 + 20.2 Nov. /Dec. Offer 74, 500 45,000 - 29, 500 - 39.6 Sampling Girls 172, 000 360, 000 +188, 000 + 109.3 Sampling-Miscellaneous 75, 000 180, 000 +105, 000 + 140.0 Shopping Cart 50, 000 + 50, 000 + 100.0 Winston Photo Cube 70, 000 + 70, 000 + 100.0 Golf Test 17,000 - 17, 000 - 100.0 "Box Seat" Sweepstakes 40,000 - 40, 000 - 100.0 Sub- Total 849,000 1,315,200 +466, 200 + 54.9 Special Events: NASCAR Auto Racing 341, 000 269,805 - 71, 195 - 20.8 Rodeo 304,000 227,825 - 76,175 - 25.0 Bowling 36,000 18,000 - 18,000 - 50.0 Total Spec ial Events 681,000 515, 630 -165, 370 - 24.2 Coupon Program 35,000 520, 000 +485, 000 + 1385. 7 TOTAL BRAND CONTROLLED $1, 565, 000 $2, 350, 830 $+785, 830 + 50.2 Shelf Display 2,646, 000 2, 983, 000 +337, 000 + 12. 7 V. M. Display 1,428,200 1,558,000 +129, 800 + 9.0 O. T. C. Display Allow. 184, 000 375, 000 +191, 000 + 103.8 Floor/Stacker Disp. Allow. 340, 500 342, 000 + 1, 500 184 200 130 195 + 10 930 + 5 9 Consumer Offer , , , . Non-Assignables 1,460, 000 2, 232, 100 +772, 100 + 52.9 Military 219, 750 294, 120 + 74, 370 Ln + 33.8 0 0 Carton Loaders 266, 000 +2661 000 + 100. 0 w Sub- Total 6,462, 650 8,245, 350 +1, 782, 700 -4 + 27. 5 GRAND TOTAL $8, 027, 650 $10, 596, 180 $ +2, 568, 530 .W + 31.9 cr ~ -42.-
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WINSTO_N_ SUPER KING &~SUY_FR KING M_EN_'!'H_OL 1974 SALES PROIMOTI0N BUDGET P-O-S Items: Pasters Decals Calendars - Thermometers Carton Cards Shelf Strips V. M. Inserts Reserve Testing Vending Test Art Work Special Promotional Mat'l Nov./Dec. Offer Sampling Girls Sampling-Miscellaneous Shopping Cart WINSTON Photo Cube Golf Test "Box Seat" Sweepstakes Special Events: Est. 1973 Budget 1974 $ 13,000 $ 18,000 10,500 15,000 ~ ' ~ 33,000 ~ 23,500 $ 20,000 15,000 $ 5,250 10,000 75,250 50,000 500 15,000 Increase (Decrease) $7 $ +$ 13,000 +100.0 7,500 - 41.7 - 1.5, 000 -100 . 0 _ -$ 9,500 - 28.8 +$ 20,000 +100.0 + 15,000 +100.0 + 4,750 . + 90.5 - 25,250 - 33.5 + 14,500 +2900% NASCAR Auto Racing Rodeo Bowling Total Special Events Coupon Program 200,000 0 - 200,000 -100.0 TOTAL BRAND CONTROLLED $ 314,000 $ 133,500 -$180,500 - 57.5 Shelf Display 882,000 $ 808,550 -$ 73,450 - 8.3 V. M. Display 384,800 422,300 + 37,500 + 9.7 O.T.C. Display Allow. 61,500 125,000 + 63,500 +103.2 Floor/Stacker Disp. Allow. 113,500 103,000 - 10,500 - 9.2 Consumer Offer 49,630 52,890 + 3,260 + 6.5 Non-Assignables 481,000 605,735 + 124,735 + 25.9 Military 73,250. 79,720 + 6,470 + 8.8 Carton Loaders 123,600 + 123,600 +100.0 Sub-Total 2,045,680 ~_2_,320,795 + , 275,115 + 13.4 GRAND TOTAL $2,359,680 $2,454,295 +$ 94,615 + 4.0 -43-
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WINSTON SUPER Y,ING & SUI'Fk KING_I1_L':~`fHOL 1974 ShLES PROM0TI0N BUDGET Est. Budget Increase (Decrease) 1973 '1974 $ $ P-O-S Items: Pasters -- i I Decals -- $ 13,000 +$ 13,000 +100.0 Calendars Thermometers -- Carton Cards $ 18,000 10,500 - 7,500 - 41.7 Shelf Strips V. M. Inserts 15,000 ~ -- - 15,000 -100.0 33,000 $ 23,500 -0-9,500 - 28.8 Reserve $ 20,000 +$ 20,000 +100.0 Testing 15,000 + 15,000 +100.0 Vending Test Art Work $ 5,250 10,000 + 4,750 + 90.5 Special Promotional Mat'1 75,250 50,000 - 25,250 - 33.5 Nov./Dec. Offer 500 15,000 + 14,500 +2900% Sampling Girls -- Sampling-Miscellaneous -- Shopping Cart -- WINSTON Photo Cube -- Golf Test -- "Box Seat"•-Sweepstakes -- _ Sub-Total ~114,000 133,500 ~ +~--19,500 + 17.1 Special Events: NASCAR Auto Racing Rodeo Bowling Total Special Events Coupon Program 200,000 0 - 200,000 -100.0 TOTAL BRAND CONTROLLED $ 314,000 $ 133,500 -$180,500 - 57.5 Shelf Display $ 882,000 $ 808,550 -$ 73,450 - 8.3 V. M. Display 384,800 422,300 + 37,500 + 9.7 O.T.C. Display Allow. 61,500 125,000 + 63,500 +103.2 Floor/Stacker Disp. Allow. 113,500 92,700 - 20,800 Consumer Offer 49,63_0 Non-Assignables 481,000 52,890 605,735 + 3,260 + 124.,735 + 6.5 + 25.9 Military 73,250 79,720 + 6,470 + 8.8 Carton Loaders _ -- 72,100 + 72,100 -- Sub-Total $2,045,680 $2,258,995 + 213,315 + 10.4 GRAND TOTAL $2,359,680 $2.,392,495• + 32,815 + 1.3
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RESERVE ---- $95, 000 ,~ Monies may be used for the following in 1974: (a) New P-O-S (Carton Cards, Decals, Shelf Strips) to aid New WINSTON Campaign late in 1974. (b) Fund special ethnic promotions (Green Money, Jewish Sweepstakes, Etc. ) (c) Coupon Programs - Two coupon test results will not be completed until early 1974. TESTING ---- $60, 000 Monies may be used for the following in 1974: (a) MRD studies for promotional items (Liquidators, Sweep- stake Concepts, New Sampling Programs, Couponing Methods. ) (b) New Promotional tools to aid WINSTON Box. COUPONING ---- $520, 000 Top 10 Metro-Mailing in Mid-Year to aid awareness of New Campaign and gain quantity trial.
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I SAMPLING GIRLS/SAMPLING MISC. ---- $540, 000 Approved Programs - PEP Form 1476 SHOPPJNG CART ---- $50, 000 Test value of this promotion January/February, 1974. WINSTON PHOTO CUBE ---- $70, 000 Expand Program. Tested in 1972 to 28 Sales Divisions Mid-Year (July/August).
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PRI:FACE SPECIAL EVENTS RESEARCH In order to assess more accurately the effectiveness of WINSTON's Racing and Rodeo activities, initiated in 1971 and 1972 respec- tively, research has been conducted in 1973 which will provide quantitative measurements as to awareness, attitudes, and sales of WINSTON among attendants at these events and fans in general.. This information, to be available in October, 1973, will provide an immediate indication of the apparent Divisional sales effect attributable to these activities and will establish a base against which future levels of awareness and attitudes can be measured. .WINSTON's Racing and Rodeo activities for 1974, as detailed in the following pages, will be evaluated on the basis of this initial research in conjunction with findings from comparable research to be conducted again in 1974.
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WINSTON RACING PROGRAM STRATEGY The objective of WINSTON's sponsorship of NASCAR Grand National Racing is to increase the Brand's franchise among attendants and fans of this sport. Efforts will primarily be directed toward young adult male smokers, endeavoring to associate WINSTON with the fast-paced, exciting life style of Racing. TACTICS 1. Sponsorshi2 _Pro__g__r_am Continuation of the WINSTON CUP Point Fund, expanding, if practicable, the concept into other areas of the country in a manner similar to the WINSTON CUP Grand National East and West Programs. Continued sponsorship of two individual events, the WINSTON Western 500 in Riverside, California, and the WINSTON 500 in Talladega, Alabama. 2,. Support and Related Activities -. -- A, Sales support in immediate race area through the placement of promotional materials and banners at selected locations. Continuation of race-related retail sales campaign through the T;erchandising Division. B. Media support through race-related advertising (expenses to be shared)_ in area newspapers, . magazines, track publications and race programso C. Special efforts handled by WINSTON CUP Racing Team will include the following: 1. Coordination with Sales Force in scheduling WINSTON #l Cars into shopping centers and retail outlets preceding event in area surrounding each track. Efforts will be made by both Sales and Racing Team to dis- tribute information concerning showings to local media. w .v w ~ -47- Ln j ~ , w ~
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2. Continued use of WINSTON CUP Gi.rl:. during pre- race and post-race activities. Gir].s wi11l also be used in conjunction with WINSTON #1 showings when practicable, to distre ibute brand-rel.at-ed materials, and in press box and VIP lounges during race, as hostesses. 3. Continuation of "Free" WZN S`I'ON Racing decal offer at track concession stands and WINSTON #1 showings. 4. Expansion of permanent painting program at individual tracks, to include Nashville, Darlington, Bristol, and Texas. 5. Continuation of press lunch program and select- ed media affairs at various events, which furthers good relations with media and encour- ages more and better coverage. 7n addition to this program, the institution of a "Press Only" contest to pick the winner of each of the three legs and the final standings, along with points accumulated during each leg and overall. Prizes for this contest to be determined. 6. Continue to further relationships and make contacts with local and national political and business figures. RATIONALE 1. WINSTON will gain added exposure and mention among attendants at racing events and among sports fans in general, from media reports, advertising, special activities, sponsorship, press coverage, and P-O-S support of Racing. 2. Racing promotional offers for dealers and consumers will aid Sales Force in increasing stock levels. 3. WINSTON should gain higher level of sales, awareness and receptiveness among race fans through the support of their sport.
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. WINSTON RACING BUDGET PROGRAM Estimated Budget Incre_ase/ (Decrease) WINSTON Cup y1973 1974 Purse $120,000 $140,000 +$ 20,000 +16.6% Cars/1'c.rsonnel Events Prcmotion 116,000 49,000 1.16,000 49,000 -- -- -- WINjSTON Girls 8,000 8,000 -- -- Press i.elations 29,000 29,000 -- -- Public Relations 30,000 30,000 -- -- Building & Painting 27,000 27,000 ~ -- Sub-total $379,000 $399,000 +$ 20,000 + 5.3% WINSTON Western 500 Purse $ 50,000 $ 60,000 +$ 10,000 +20% Public I:elations 17,000 17,000 -- -- Press Relations 11,000 11,000 -- -- Events Promotion 4,000 4,000 -= -- I~ii.scel] alZeous 10,000 10,000 $ 92,000 $102,000 +$ 10,000 +6.4% Sub-to,tal $471.,000 '$501,000 +$ 30,000 +19.5% WINSTON 500 Purse $100,000 $125,000 +$ 25,000 +25% Public Relations 13,000 13,000 Press Relations 8,000 8,000 -- -- Events Promotion 4,000 4,000 -- -- Asiscellaneous 3,000 3,000 -- -- _ $128, 000 _ $153, 000 +$ 25,000 -i-9. 2% 1 Sub-total $599,000 $654,000 +$ 55,000 I I +28.0% 1 Grand National East/WPGt _ t Purse $ 30,000 $ 40,000 +$ 10,000 +33-1/3% 1 Public Relations _ 6,000 6,000 ~ $ 36,000 $ 46,000 ~ WINSTON Cup Reserve N/A $ 45,000 -- -- TOTAL PROGRAM ' ~635, 000 45,000 ±$110, 000 -t-15.7y, Ln , -49- f Ln F _j i ( n j
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SALES PROMOTION WINS'1'ON Cup ; Swinging Pack Carton Riser Card Catalogs Banners "Cup" Pasters "Welcome" Pasters Fl. Base Riser Cards 90/180 Carton Floor Bases Sales Brochure. Sub- Total .WINSTON Western 50_0___- Banners Pasters 90/180 Carton Floor Bases Fl. Base Riser Cards Sub- Total Banners Pasters 90/180 Ctn. Floor Bases Fl. Base Riser Cards Art Work Sub- Total WINSTON Grand National West Banners Pasters Floor Base Riser Cards Imprint Pasters Sub- Total TOTAL SALES PROMOTION Est. Budget Increase (Decrease~ 1973 1974 A J 0 __ _ - - $11, 000 $ • 0 $-11, 000 -100. 0 3, 000 7, 350 + 4,350 +145. 0 73,000 70,000 - 3,000 - 4.0 30, 000 32, 000 + 2, 000 + 6. 0 14, 000 10, 500 - 3, 500 - 25. 0 8,000 4,350 - 3,650 - 46.0 87, 000 77, 000 - 10, 000 - 11. 0 74,000 - 74, 000 - 100. 0 2,000 1,800 - 200 - 10.0 302, 000 203,000 -99, 000 - 33.0 3,000 2,000 - 1,000 - 33. 0 2, 000 1,600 - 400 - 20.0 7,000 - 7, 000 -100. 0 11,000 3, 500 - 7,500 - 68.0 23, 000 7, 100 -15, 900 - 69. 0 4, 000 2, 000 - 2, 000 - 50. 0 1,000 1,680 + 680 + 68.0 4,000 5, 025 + 1, 025 + 26. 0 7, 000 - 7,000 -100. 0 20,00 0 +20, 000 fI09--Oti 16,000 28,705 +12, 705 + 79.0 12, 000 +12, 000 +100. 0 6, 000 + 6,000 +100. 0 7,000 + 7,000 +100. 0 6, 000 + 6,00 0 +100. 0 31, 000 +31, 000 +100. 0 $341,000 $269,805 $-71,195 Ln - 21.0 w . ~ ; -50- wN J vN ,
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Estimated Budget Increase (Decrease) MEDIA 1973 1974 $ $ Newspapers $126,000 $132,000 $ 6,000 5 Programs 22,000 23,000 1,000 5 Production 41,000 44,000 3,000 5 TOTAL MEDIA $189,000 $199,000 $10,000 5% GRAND TOTAL RACING $1,165,000 $1,213,805 $48,805 4% w ~ -51- ~
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WINSTON RODEO PROGRAM STRATEGY The overall objective of V]INS''1'ON' S sponsorship program among the 600 professional rodeos sanctioned by the Rodeo Cowboys Association is to increase the Brand's franchise among rodeo fans in general and particularly among the estimated 12 million spectators at rodeos. The primary geographical area is west of the r9issi.ssippi. Efforts will be directed toward associating the WINSTON Brand with the excitement and intense grassroots interest/lifestyle which professional rodeo encompasses. There will be subsidiary support of merchandising activities at various rodeos. Secondary emphasis of the WINSTON Rodeo Awards program will be directed toward people involved in "horse" activities in general---horse shows, trai.l ride groups, Sheriff's Posses, western stores, etc. TACTICS . S onsorshi- Proqram -~---------.--- ['_ _ _____ The basis off the WINSTON sponsorship program is the WINSTON Rodeo Awards plan, which is tied to the RCA's Championship standings. Payoffs are made twice during the regular rodeo season and a final payoff following the National Finals in December. The Awards plan covers all 600 RCA sanctioned rodeos. 2. SupF>or-t and Related Activities A. Sales support will be given to the program at retail in areas surrounding rodeos classified as "A" (75 rodeos) and "B" (80 rodeos) by placement of WINSTON Rodeo materials, which include banners, pasters and product displays utilizing the rodeo theme in a multi.ple-merchandise/free catalog and bumper sticker offer on WINSTON. B. WINSTON Rodeo promotional materials are made available to the approximately 450 remaining RCA rodeos (classified as "A].i Other") on a direct basis from winston-Salem. The Sales Department supports this group of rodeos when personnel are available within a reasonable distance from thei r home base.
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C. Media support will be provided to only those 75 rodeos classified as "A." Media support consists of four- color (when available) WINSTON Rodeo advertisements in programs and 600-line, B&W newspaper advertisements promoting the rodeo in the general market area. D. WINSTON Rodeo Scoreboards (4 units) are made available to the "A" rodeo list, as schedules permit. Additional smaller rodeos are worked into the schedule on a "convenience" basis. E. Special efforts handled by the WINSTON Rodeo Team: o Contact with the 600 RCA rodeo committees and coor.di_nat.e program. o Public Relations activities, efforts of which are directed to print media and to the 600 RCA rodeo committees. o Coordinate Sales Promotion materials to Field and work with both Home Office Sales Staff as well as Field Management where'necessary. o Contact with the 67 RCA approved rodeo announcers. o Contact with the 36 RCA approved rodeo stock contractors. o Planning and execution of three awards functions annually. o Arrange permanent WINSTON Rodeo identification in facilities which merit such activity (Cody, Wyoming; Cowtown, New Jersey;Mesqu.ite, Texas; Lake Luzerne, New York). Q Assist Merchandising Division with proper contacts. e Execute program with Cowboy Hall of Fame--i.e., champion portrait outreach. Schedule the SPORTS ILLUSTRATED rodeo photograph display. RATIONALE 1. Rodeo continues to grow and show increased popularity. For example, RCA will sanction approximately 40 additional rodeos in 1973 over 1972, and it appears attendance will surpass the 1972 record of an estimated 12 million (RCA only). Additionally, purses are higher, and entry lists of rodeos are at an all-time high. -53-
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s 2. WINSTON is the major sponsor of RCA rodeos and, as such, dominates the sport. 3. The WINSTON-RCA relationship should continue in that it provides official sanction to our program, which is tied directly to the RCA Championship standings. RCA also provides essential. services such as mailings to members, news releases to media, direct public relation activity and constant coverage of WINSTON in the hi-weekly RODEO SPORTS NEWS tabloid. 4. The WINSTON Scoreboards represent the only "coiiLniercial" message in arenas where they are utilized. This is important because it may be the only exposure to the WINSTON Rodeo Awards for some fans. The boards nott only add to the fan's enjoyment of the rodeo by keeping him better informed, it adds color and a professional touch to the arena and provides the rodeo announcer many more opportunities to talk about the "WINSTON Scoreboard." In many places,.we have received good newspaper coverage of the board and the Scoreboard Team's Manager, Buck Sutherland. In 1973, electronic timers were added to the boards, which enhance the entire operation and service. The boards also serve as the official timer at events and are referred to frequently throughout the performances. 5. Media support--newspapers and program ads--serve to foster `WTNSTON'S involvement with •rodeo and the RCA and to gain additional support for the program from the local committee. The newspaper effort amounts to 54 million gross circulation. Furthermore., we believe a minimum media effort in regional and national "horse" publications to be important. We expect to have a rodeo movie in distribution (insti- tutional and theater) by early 1974, which will give further strength to the WINSTON Rodeo involvement. 6. Because rodeo is a very popular but highly local event, .point-of-sale activity through pasters, banners, decals, displays, and promoti.ons is necessary to further enhance WINSTON'S association with rodeo and provide the Sales Force an opportunity to sell, advertise and generally capitalize on this involvement. 7. The size and extent of professional rodeos make it mandatory from an efficiency standpoint to catagorize rodeos as far as WINSTON participation. Therefore, "A" rodeos represent major rodeos which offer WINSTON the best opportunity to achieve impact both from a sales standpoint and involvement in the sport. "B" rodeos receive sales support but no media. "All Other" rodeos receive WINSTON Rodeo materials and, in some cases, sales support. The Rodeo Team, as more rodeos are visited, changes classifications from time to time as new factors emerge. Also, the Sales Department recommends changes. -54-
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8. The program continues to realize good results from its public relations efforts. This is true in the area of newspaper space, especially with our in-house features on the program and the WINSTON Scoreboard. P1ans are to continue to make the contacts and provide copy which result in linage for WINSTON, especially in regard to the largest metropolitan areas in the rodeo "heartland." Press kits are sent to all 600 rodeo committees, and we are receiving many free pages with WINSTON information. Some rodeos have utilized daily program insert sheets which we supplied. Two outside pages feature "WINSTON," while the local committee prints the rodeo schedule on the two inside pages. NEW PROGRAMS The Team believes strongly that the. three following programs should be implemented in 1974 to increase the impact and outreach of the WINSTON program: (1) Add the Girls Barrel Racing Association to overall Awards program. The $5,000 would be allocated this way: $500 to each of six regional champions and .$?,, 000 to the Wor..ld's Champi.on at the NFR in December. (2) Add a program featuring Miss WINSTON Rodeo Awards. In addition to in-arena exposure at larger rodeos, she would appear in pre-rocieo promotion activities, both in-store and in conjunction with special committee activities, thus adding glamour and overall personalization to the program. (3) The WINSTON Rodeo Band would be worked in larger areas in association with the larger shopping centers. The concept is exactly the same as with the WINSTON #1 Car program.
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WINSTON RODEO BUDGET Estimated Budget Inc./(Dec.) PROGRAM 1973 1974 $ Purse $105,000 $120,000 $+15,000 + 14.3% Scoreborad Team 200,000 230,000 +30,000 + 15.0 Film 65,000 -- -65 000 -- Public Relations 45,000 39,000 , - 6,000 - 13.3 Press Relations -- 12,000 +12 000 -- Building and Painting 2,500 4,000 , + 1,500 + 6.0 Team Uniforms 2,500 2,000 - 500 - 20.0 Events Promotions (Flags, Banners, Trophies, etc.) 2,000 8,000 + 6,000 +300.0 Program Printing & Inserts 3,000 5,000 + 2 000 + 66 6 Catalog Insertion 5,000 5,000 , -- . -- TOTAL PROGRAM $430,000 $425,000 $- 5,000 - 1% SALES PROMOTION "Welcome"Banners $ 35,000 $ 28,000 $- 7,000 - 20.0% "Welcome"Pasters 19,000 6,525 -12,000 - 66.0 Imprint Pasters 15,000 10,500 - 4,500 - 30.0 Floor Base Riser C d ar s 42,000 45,000 + 3,000 + 7.0 Carton Riser Cards 5,000 4,400 - 600 - 12.0 90/180 Carton Floor B 4 ases 6,000 - -46,000 -100.0 Sales Brochures 2,000 2,400 + 400 + 20.0 Catalogs & Holders 64,000 63,000 - 1,000 - 2.0 Change Aprons 4,000 4,000 Sweepstakes Prizes 12,000 - -12,000 -100.0 Bumper Stickers 60,000 54,000 - 6,000 - 10.0 Art Work 0 10,000 +10,000 +100.0 TOTAL S. P. $304,000 $227,825 $-76,175 - 25.0% MEDIA Newspapers $120,000 $126,000 $ 6,000 5% Programs 37,000 39,000 2,000 5 Production 38,000 40,000 2,000 5 TOTAL MEDIA $195,000 $205,000 $ 10,000 5% GRAND TOTAL RODEO $929,000 $857,825 $(71,175) (8)% NOTE: Three new programs are recommended for 1974: 1) Add Girls Barrel Racing Association to Awards Program Cost $ 5,000 2) Add Miss WINSTON Rodeo Awards Est. Cost $ 13,000 3) Add WINSTON Rodeo Band for Outreach Est. Cost $ 186,000 (Tentative Reserve) TOTAL $ 204,000
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WINSTON-ShLf:A3 fiOWLING Stratecy The objectives of Winston-Salem involvement are to increase the brands awareness and sales among the nation's 40 KM bowlers, especially league bowlers, through programs designed to associate these brands with the sport of bowling and through direct merchandising efforts aimed at this group. Tactics The objectives of our bowling program will be realized by utilizing the following tactics: 1. Sponsorship--We will continue our sponsorship of three major PBA tournaments. 2. Continue our sponsorship of the National Pro Am tourna- ment held in conjunction with the W-S Classic. 3. Sponsor a PWBA tournament and 11-S Lady of the Lanes Award. 4. Increase our involvement with the National Bowling Asso- ciation, by sponsoring their National Bowling tournament, His and-Her Most Improved Bowler and Convention Banquet. 5. Increase our contribution to the W-S Classic by $6,000 to maintain prestige and -status iri the bowling industry and remain tied for the third largest tournament in the US. 6. Continue Most Improved Bowler Award Program. 7. Vending and other merchandising efforts. Rational 1. Continue to sponsor the three PBA tournaments as well as the W-S National Pro-Am to build strong identification for Z1inston and Salem brands among the 40 Mtii regular bowlers in the US and make these brands the preeminent cigarette for bowlers. 2. Consumer involvement has been and will be accomplished through the PFA vehicle. Interest in Professional Bowling is a strong fourth in a recent poll taken of thirteen (13) sports in terms of popularity a-mong the nation's Sports fans. 3. We wi 1l sponsor a PWBA tournar~ ~nt because itt has shown excellent gr_o,it?? ~_,nder the direction of Fucky Woy. Their popu:Lar.ity has incrcasod progressively and t}iey will have t.hei.r first $100.14 toui-nar.?ent tel.eviseci nationally by -57-
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CI;S in January, 1974. Twenty-£our percent of' the rO.MM bowlers in the US are women (l0:rLM). Their stars Paula Spcrber and Loa Boxberger are presently doing TV c:ommercia].s for Colgate-Palmolive. 4. Sponsorship of the TNBA tournament will be covered by all black magazines and newspapers. It affords us the direct appeal to the black smoker to become a loyal Winston or Salem smo};er. Blacks are the target market for Salem regardless of the age group. 5. The Most Improved Bowler Award Program is an opportune way of creating and maintaining the brand awareness and increase sales in vending machines as well as over-the- counter sales. Our MIB trophy and/or other materials are being prominently displayed in the 10,000 bowling centers in the US. Sales will call on all centers with 24''or more lanes to assure the prominent display of materials. The brand and special events group will determine the success of the program through MRD. 6: The PBA will contribute $4M of the $10M to increase the Winston-Salem Classic to $100M. Showboat has already increased their tournament to $111,131 while Brunswick has announced their $100M tournament. Miller Highlife and Lincoln-Mercury are expected to have tournaments of $90M in 1974. We will maintain leadership in the industry -with our $100M tournament.
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BOWLING BUDGET PROGRAM 1973 1974 Increase/(Decrease) ------- $ W-S PBA Classic Purse $ 55,000 $ 55,000 $ Public Relations 25,000 25,000 Press Relations NA 10,000 10,000 100.00 Event Promotion NA 5,000 5,000 100.00 Building/Painting 10,000 15,000 5,000 50.00 $ 90,000 -~= -X0 U $20, uuu ' 22.00 National Pro Am Purse $ 10 000 $ 10 000 --- Public Relations Events Promotion , 20,000 NA , 20,000 5,000_ --- 5,000 ---- 100.00% $ 30,000. _ $ 35,000 $ 5,000 16.00% W-S Pro Am $ 4,000 $ 5,000 $ 1,000 25.00% W-S Open Purse $ 20,000 $ 20,000 Public Relations 2,500, 5,000 2,500 50.00% \Press Relations NA 7,500 7,500 100.00 ~, Event Promotion NA 2,500 2,500 100.00 Misc./Trophies 7,500 --- (7,500) (100.00) $ 30,000 _ $ 35,_00_0 $ 5,000 16.00% W-S Hawaiian Invitational Purse $ 20,000 $ 20,500 $ 500 20.00% Public Relations 10,000 10,000 --- --- Press Relations NA 6,000 '6,000 100.00 Misc./Trophies 10,000 (10,000) (100.00) Event Promotion NA 10,000 10,0 00 100.00 $ 40,000 $ 46,000 _ _ $ 6,500 16.20% W-S PWBA Tournament Purse $ 25,000 $ --- $ (25, 000) (.100. 00) % Public Relations 5,000 $ (5,000) (100,00) Press Relations Event Promotion NA NA $ 30,000 $ --- $ (30, 000) ' (].00.00) % Most Improved Bowler Trophies $ 62,000 $ 68,000 $ 6,000 9.60% Public Relations 5,000 5,000 .Miscellaneous 5,000 5,000 Trophy Display 35,000 38,500 3,500 10.00 Counter Display 45,000 50,000 5,000 11.00 Easel Card 5,000 5,000 --- Score Card 35,000 38,500 3,500 10.00 0 Freight 30,000 38, 000 8,000 10.00 °w $222,000 _ $296,000 _ $ 26,000 11 -4 .. 00€ w Ln -59-
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1973 1974 Increase Decrease PBAA Convention, BWAA Convention, TNBA Support $10,000 $ 10,000 $ -- -- % Bowling Publication/Prog. 24,000 4,000 (20,000) (83) Reserve 8,000 8,000 -- -- TOTAL Program $488,000 $501,500 $ 13,500 3% SALES PROMOTION W-S Acetate Bowling Schedule $ 30,700 $ 32,000 $ 1,300 4.00% W-S PBA Classic 1,200 -- (1,200) 100.00 Imprint Pasters 700 4,000 3,300 4.50 Bowling Sweepstakes 15,000 -- (15,000) (100.00) PBA Regional Tournament 10,400 -- (10,400) (100.00) W-S Most Improved Bowler 14,000 -- (14,000) (100.00) TOTAL Sales Promotion $ 72,000 $ 36,000 $ 36,000) (50.00) MEDIA Publications * $ 22,500 -- -- $ 22,500 $ 2,500 100 TOTAL Media * *Carried under PROGRAM budget: Bowling Publications -$24,000 Grand Total Bowling $560,000 $560,000 $ -- % Grand Total WINSTON $280,000 $280,000 $ -- -- % (50/50 with SALEM) 0 ~ w J W -60- co a%
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WINSTON SPECIAL EVENTS BUDGET SUMMARY ( 000) PROGRAM 1973 1974 % Est. % Change 1975 Change Racing $ 635 $ 745 15 $ 782 5 Rodeo 430 425 (1) 430 - Bowling 244 251 ;' 3 264 5 Golf 20 20 - 20 - TOTAL Program SALES PROMOTION $1,329 $1,441 8%_ $1,496 I 4% Racing $ 341 $ 270 (21) $ 284 5 Rodeo 304 228 (25) 239 5 Bowling 36 18 (50) 19 5 TOTAL S. P. MEDIA $ 681 $ 516 (24)% $ 542 5% Racing $ 189 $ 199 5 $ 209 5 Rodeo 195 205 5 215 5 Bowling -* 11 - - 12 5 TOTAL Media $ 384 $_415 9% $_ 436 : 5% *$12M Carried In Program Budget TOTAL Special Events $2,394 $2,372 -- 2 474 ' 4%
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OTHER DIRECT AND GRATIS BUDGET WINSTON OTHER DIRECT ($000) Estimated Budget Increase/(Decrease) 1973 1974 $ $ Matchbook Advertisinga $ 155 $ 138 $(17) (11)% Tobacco Products Used By Salesmen 25 25 NC NC Packaging Developmentb 36 -- (36) (100) Miscellaneous 5 5 NC NC TOTAL OTHER DIRECT $ 221 $ 168 $(53) (24)% Gratisc $ 246 S 406 5160 a 368MM matchbooks both years. Lowered cost from addition of Bean as matchbook supplier. b No cost for 1974 as design work to be completed in 1973. C Increased cost in 1974 due to expansion of sampling program.
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INDEX Page Category/Competitive Market Performance 63 Winston Brand Item P&L Statements 69 Competitive Spending 75 CCS Data 82 Recommended Coupon Markets and Data 84 Negro Market Data 85 WCPB "Photo Cube" Markets 87 Consumer Promotion Comparisons 88 Special Events Research Proposals 89 NFO DATA Development of Smokers By City Size- 93 Distribution of Smokers 94 Brand/Category Share of Smokers 100 Gain/Loss Data 115 1973 Testing & Development Summary ' 136 .1

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