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A Confidential Tobacco Industry Public Relations Memo Detailing the Industry's Planned Propaganda Blitz

12/22/1997
Privileged and Confidential
Subject to Attorney-Client Privilege
Attorney Work Product

MEMORANDUM

December 22, 1997

To: Client

From: Bozell Sawyer Miller Group

Re: Communications Plan: January 12 - February 12, 1998

As we look toward 1998 and the return of Congress the industry faces the sizable, but not insurmountable, task of convincing Congress and the public of the significant value of a comprehensive resolution of long-standing tobacco issues. In light of the diminishing support and mounting opposition to the Reposed Resolution (PR) as shown by our quantitative analysis and focus group research, it is crucial that the industry take Immediate steps following the holidays to shore up existing support, educate and engage new allies and address critics head-on Although many agree that some form of tobacco control legislation will be passed in the first half of 1998, the industry should wage an aggressive campaign to ensure that this legislation closely resembles the current PR.

Following for your review and approval is a draft plan outlining a proactive national communications strategy, including messages and tactics, that we suggest be launched in mid January and continue through mid-February. The national campaign would be followed by a broader regional campaign. We believe it is critical to deliver strong, clear messages of support for the current PR to Members of Congress and their constituents early in the year before Members begin casting votes on the various tobacco measures pending before Congress and others which will surely be introduced in the new year.

It is clear that Members on Capitol Hill do nor feel a sense of urgency in passing comprehensive legislation. Many, perhaps, will take a wait-and-see approach in order to gauge the feelings of constituents. It is therefore imperative that the companies begin to address Americans through an array of means including paid advertising, direct contact and free media. If Members are to be pressed into action, they will first need to feel pressure from constituents. Following are proposed activities designed to increase attention to the need for comprehensive legislation, spur public debate and generate a sense of urgency on Capitol Hill for enacting legislation by late spring or early summer.

Communications Objectives

• To reposition the PR as an historic, landmark agreement that offers the most comprehensive solution to outstanding tobacco issues.

• To continue to educate the public regarding the industry's significant concessions and refocus the public debate on the broad public health advantages offered by the PR.

• To inform the public of what the industry stands to gain in a settlement making the point that a comprehensive solution is also a compromise.

• To transmit a clear message on just how far the industry is willing to go and what stands to be lost if the industry is pushed too far and is forced to back out.

• To create a basis for an exit, i.e. ideally, industry made a legitimate offer and the politicians played politics and made a mess of it.

• To create momentum and pressure for our package. Make politicians feel that failure to act positively on that package has political risks because the voters will punish them.

A Comprehensive, National Communications Program

We recommend a multi-tiered communications program beginning in January and continuing until the issue reaches closure. Although this national plan initially addresses only activities from approximately January 12 to February 12 (the launch phase), similar programs would be rolled out in targeted states throughout the year.

Primary Messages

• The proposed resolution offers a certain, immediate and comprehensive approach to resolving long-standing tobacco issues. No other option has offered so much that could become effective so quickly.

• A comprehensive solution can nor be obtained without the industry's compliance. First Amendment concessions can only be obtained "voluntarily."

• The companies are committed to changing the way we do business--a "new day" commitment that will dramatically affect the way tobacco products are manufactured, marketed and sold in the United States.

• Failure to enact this comprehensive proposal, will mean years, if not decades, of continued legal and political conflict.

• The results of litigation are unpredictable from state to state. The current PR will provide a uniform, national approach to resolving these issues and it will be backed by the certainty of law.

• Few would have thought we could achieve so much in just a few months.

• The PR represents a delicately balanced agreement reached after months of intense and often contentious negotiations. Those who would insist on further concessions risk toppling this fragile compromise.

• Congress now has an historic opportunity to make the national proposal a reality and resolve the long-standing controversy surrounding tobacco. This opportunity should be seized, not squandered.
  

Advertising Strategy

We recommend that the industry use print, radio and television advertising to launch an aggressive public education campaign to promote the industry's most positive messages and ensure Congress and key opinion leaders understand the significant benefits of the PR.

Advocacy Advertisements

The advertising campaign should include at least three flights of national ads that follow in consecutive order beginning mid-January. With national and Beltway-based print, radio and television buys, the ad campaign will blanket Members of Congress and opinion elites with the industry's key messages. It may also be important to consider some district targeting, depending on lobbying needs. (A separate Bozell/Eskew plan will go into greater detail.)

Fulfillment Piece

The live operators would also send a brochure to people calling the 800 number. The brochure will serve as a basic fulfillment piece restating the industry's position on the resolution and clarifying the plan's various provisions.

• The estimated cost for 500,000 copies of the two-color brochure is $10,000, not including the graphic design and copy development. Turnaround time for printing is approximately two weeks.

800 Telephone Number

If deemed worthwhile, each advertisement would have a toll-free number for interested parties to call for more information regarding the proposed tobacco resolution. Live operators would be able to capture important demographic information about the interested parties. This information would then be added to a database to create a useful list for future related mailings.

• The estimated cost is approximately $3,675,400 for 1 million calls over a 6 month period. This figure includes basic phone set up, operator training and implementation, long-distance charges, mailing and miscellaneous expenses.
  

Free Media Strategy

The industry should engage in an aggressive media campaign beginning mid-January to announce the ad campaign, explain the intricacies and benefits of the PR, and describe what stands to be lost if a comprehensive solution is not enacted.

We recommend that company spokespeople assume greater visibility in order to demonstrate the "new day" approach of the tobacco companies. There is a role for the holding company CEOs in the plan, although their time would be judiciously used.

Launch Event

The campaign should be launched with a news conference at the National Press Club on Monday, January 12, 1998, announcing the industry's intent to begin advertising. We recommend that Steve Parrish act as the industry's spokesman on this day as we preview the print and broadcast ads that would debut in major newspapers and on network and cable television on Tuesday, January 13. Such an event would serve as an effective venue to restate our messages and create free media.

CEO Availability

The CEOs should begin to play a more active role in the PR debate via media outreach and public statements. We propose that the CEO of each company participate individually in the following communications efforts between January 12 and February 12:

• Editorial board meeting at a national daily newspaper

-The Wall Street Journal
-The New York Times
-USA Today
-The Washington Post
-The Washington Times

• A major speech (National Press Club, Detroit Economic Club, etc.) to preview messages prior to Congressional testimony
• Op-ed to be published in a national newspaper with the following themes as proposed topics:

-Why the industry entered the negotiations/We are ready for change

-A comprehensive solution requires the compliance of the industry/But mustn't go too far

-We are ready to fight if necessary

• A designated CEO should grant an exclusive interview to a national publication providing there is agreement to publish the interview in Q & A format

Industry Spokespeople

We recommend expanding the list of industry spokespeople to include not just professional communicators, but also representatives from the companies. These spokespeople would conduct speeches, national media interviews (print, radio and television) and editorial board meetings.

In addition to Phil Carlton, it is important that company people convey our key messages. We suggest using the following:

• On the record interviews with key network television and national print reporters

-ABC News

-CBS News

-CNN

-NBC News

-Associated Press

-Bloomberg News

-Reuters

-The New York Times

-The Wall Street Journal

-The Washington Post

-USA Today

-The Los Angeles Times

• Radio media tour:

-An industry spokesperson could reach 10-12 targeted radio audiences on any given day. These interviews would be both live and taped, requiring a total of 2-3 hours of the spokesperson's time.

-We recommend one radio tour per week to coincide with advertising phases.

• One-On-One Interviews:

-Company spokespeople should also participate in one-on-one, videotaped interviews on current issues as the debate progresses.

• VNR

-Development of a VNR based on the launch event or a CEO speech which would be offered to television stations. At the least, this is an opportunity to offer an industry graphic that could be used stations at a time.

Speaking Platforms

We suggest a series of speeches at major venues in key targeted markets around the country, using the company spokespeople listed above. These events and speeches can be used to increase media coverage of the industry's position and on-the-record comment. BSMG will work with the companies to identify and make available company spokespeople for speaking venues which would include the Detroit Economic Club, the Houston Forum, the Executives' Club of Chicago and Town Hall of California, among others. The CEO speech would serve as the template for speeches to be delivered by other company spokespeople.

Direct Mail Outreach

As Haley Barbour has suggested, the industry needs a direct mail piece to disseminate information on the proposed tobacco resolution to the maximum number of the companies' potential allies. It is critical for potential allies to understand and support a plan, which preserves their rights. It is equally important to impart upon them the importance of expressing their support. Wide-scale distribution of a direct mail piece would help activate this group of natural allies.

Target Audiences

- "Soccer Moms"

- Opinion elites

- Employees

- Shareholders

- Distributors

- Retailers

Internet Website Development

We propose launching a joint industry site on the worldwide web in order to establish a constant source of information. Documents to be posted would include ad copy, industry statements, fact sheets, etc. Individuals would also be invited to submit questions; the responses to which would be posted on the site. The web page would also be useful in capturing valuable demographic information to the extent possible.

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