lorillard new ideas

8/15/2019 Lorillard New Ideas

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AOIVISIONOFLOEWSTHEATRES,INC. 2525 EAST MARKET STREET, GREENSBORO, NORTH CAROLINA 27401

June 8, 1979

TO: FILESUBJECT: SEDGEFIELD IDEA SESSIONSJune 6-7, 1979The following paragraphswill summarize the discussions held atthe joint sessions in which everyone participated . A laterreport will document the ideas and suggestions which werediscussed within the individual groups but rejected for usein the general meeting .The subjects discussed fall generally into three areas :

New ProductsMarketingCost SavingsSeveral of the suggestions arose from various groups and thediscussions following the individual ideas will summarize thegeneral feeling expressed by the various groups and my editorialcomments .

S. T . Jbsies

STJ :BM

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NEW PRODUCTS IDEAS1 . Oriental Cigarettes

The idea behind this product was fourfold: Advantages includedpleasant room aroma, mild smoke, possibility of a longer burntime with lower delivery, and possibility of advertising thisas a natural product .

2 . Flavored CigarettesAll of the suggestions for this product generally parallel ourNFS and socially acceptable cigarette projects.

3 . Fruit Flavored Chewing ProductsSeveral avenues were explored in this area with the idea beingdirected toward younger chewers coming into the market. Manypeople felt that younger chewers would be attracted to productswith less tobacco taste. For example, it was suggested that weinvestigate the possibility of borrowing switching study datafrom the company which produces "Life Savers" as a basis fordetermining which flavors enjoy the widest appeal.Another suggestion was that we manufacture a product in "bitesize", individually wrapped sections, with different flavors.Another suggestion was to produce a chewing product in whichbubble gum is incorporated .Another suggestion was to produce and market a chewing tobaccoproduct in which the tobacco would be surrounded by a flavoredsugar coating, similar to gum balls .

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4 . Smokeless Tobacco Product5 . Winery

This was a suggestion for a new venture as it was felt thatLorillard currently has much of-the required technical expertisein house .

6 . Multi-Purpose CigaretteThis suggestion arose from several groups, all of which wererelated to giving the consumer a product in which he couldadjust the tar delivery, for example, by increasing or decreasingthe air dilution in the filter .Another suggestion in this area was to mix for example, fourcigarettes with 10 mgs . tar delivery, and 16 cigarettes with3 mgs. tar delivery, because many people feel that smokers in theultra low-tar category occasionally prefer a stronger smoke .Several people suggested using a dual filter, the idea beingone segment could be detached thereby increasing the tardelivery .

7 . Enrichment TechnologyThere was general agreement that we should continue our basicresearch activity in this area .

8 . Chemical Treatment - Burn RetardanceThere was general agreement that additional "know how" in thisarea is required if we are to maximize the utilization andeconomics of puffed tobacco .

9 . Old NewportMany people felt that the reintroduction of the old Newportwith the "hint of mint" including the old package and tipping

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when this product would be available .12 . Premium Priced Cigar

would appeal to older smokers who left the brand ten years ago .10. Encapsulated Filter Flavors

This was viewed as a means of incorporating non-traditional orunstable flavors in cigarettes ._

11 . Kent III MentholSeveral people noted that consumers had asked them if and

This suggestion arose from the fact that this is the onlygrowing segment in the cigar industry. We would act as adistributor for this product and might perhaps couple it with

C ~.oreota}e_ - -smp-late advertising by using it, for example, with the namePierre Lorillard .

13 . Soft Plug Chewing TobaccoEvery group discussed this idea in some form. Advantagesincluded attractive packaging, convenience of carrying, andpossible sales in vending machines .

14 . Extruded Reconstituted Tobacco ProductsPossible advantages include the use of flavor substitutions inthat extrusion methods generally do not require high temperatures .

15 . "Roll Your Own Cigarette"This suggestion was based on two factors : ; (1) Economy forthe consumer ; and, (2) Possible greater utilization of by-productsgenerated in cigarette manufacturing .

16 . 1 mg . Tar ProductRequirements/advantages include low gas phase ; easy draw ; andhigh taste.1~

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17 . Light Chewing Tobacco

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This product would be light in color and taste and shouldappeal to the younger consumers .It was suggested that we should investigate the possibility ofusing puffed tobacco in a scrap chewing tobacco product .Another suggestion was to investigate tobacco extenders includingfor example, lettuce, kenaf and cellulose .New Type Chewing Products

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Ideas included chewing gum with added nicotine and eithertobacco or other added flavors .Also discussed was a "chew stick" possibly manufactured from alow densitv wood with added nicotine .Kent Improvement

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Ideas were generally similar to those discussed at the PDCmeeting recently .Enriched Cigarette with Beneficial Effects

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This would be a low-tar cigarette with added ingredients suchas apetite suppressants, sleeping aids, aspirin, etc .Six-pack Carton

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This could be with either cigarettes or scrap chewing productswith an economy motive .100 mm . Hardbox Cigarette

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This would be a new product designed to appeal to female smokers .Colored Cigarette Papers/printed CellophaneThis idea arose in several forms including a mint greencigarette paper on a menthol brand .

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It was further suggested that the economics of this idea couldbe extended by designing labels of regional appeal and printingthe brand name on the cello overwrap . This approach was alsosuggested as a means of producing a range of products with acommon name and advertising budget but with varying tar levels .

24. EconomyReinvestigate the use of a 30's pack or perhaps packages ofless than 20 at a reduced selling price . Particular interestwould be expected in high cost areas .

25. New Small CigarThis product would utilize a flavored foam type chewable filter .

26 . Tobacco Free CigaretteEither tobacco substitute materials or cigarettes made fromlaminated,.papers with encapsulated flavors were suggested .

27 . Cigarettes with Demographic AppealAreas include race, nationality, age, regional preference, etc .

28. New Menthol CigaretteThis product would incorporate a potent cooling agent differentfrom menthol .

29 . Non-flammable CigaretteThis product would utilize flavored filters and potentiallygenerate income from consumers leaving the market .

30. EcologySuggestions for a self-extinguishing cigarette and for a productutilizing biodegradable filter and wrapping materials were expressed .


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MARKETING/PACKAGING

1 . Chewina TobaccoDevelop ad campaigns to appeal to other than blue collar workers .Areas discussed included leisure time activities such as fishing,golf, etc .

2 . Metalized Mylar FilmIntroducing a new scrap chewing or plug product utilizing thisfilm which has several possibilities for increased eye appeal .

3 . Improved tear tape tabDiscussion on this point brought out the fact that we now have thecapability to print the point of tear tape detachment on our labels .Standardization of tear tape was also discussed .

4 . Old GoldIt was suggested that perhaps we could revitalize Old Gold Filterby using the old 'gold label incorporating the coins and the "V"in the design .

5 . Unable to PurchaseDeveloping means of taking advantage of "unable to purchase"complaints .

6 . TrueBuilding ad theme around "My TRUE Story" using light-heartedapproaches such as "I met my husband in the bowling alley whenI went to the machine to purchase my pack of TRUE's ."

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7 . General Marketing Approach

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Many people expressed an interest in developing campaigns whichwould broaden the appeal of our products on a national basis .Alternatively many people felt a regionalized approach to marketingincluding hiring ad agencies in various regions, for example,Nashville .Loews EmployeesA. Insert "price off" coupons in the paychecks of all Loews

employees .B . Make sample 4's available to all Loews' employees .C . Make coupons available to all Lorillard employees for sampling

in their circle of contact .9 . Promotions

A. Investigate possibility of imprinting promotional campaignson cartons and packs in a manner similar to that used bycereal manufacturers .

B . Test a campaign in which we offer to refund the purchase priceof a product if a customer tries and dislikes the product .

C . Use 1980 Olympics as the basis for a promotional campaign .This could take the form of announcing that we would make acontribution to the U . S . Olympics fund if the consumer wouldreturn, for example, a carton end panel .

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COST SAVINGS1 . 20's Pack Sampling

Many people feel our current 4's pack sampling is both inefficientand uneconomical. -

2 . Foil ReolacementPurchasing showed samples of a gold printed paper with good colormatch to our labels which have gold colors . Annual savings of about$400,000 would result from its use throughout the factories .

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A sample product in which this printed paper waspicked up in a Philip Morris test market area .Thin Reconstituted LeafIt was felt that this product would have greaterand physical strength than our current product .Encapsulated Menthol in Cigarette PaperHigh Speed CombinersHigh Speed PackersPrimary Process Control

Alsoand

Extensive training in experimental design and data analysiswas suggested . This should equip us to more efficiently designprojects and utilize the data generated .

used was recently

filling power

This suggestion dealt mainly with increased automation .increased automation in cigarette, physical, mechanicalleaf labs was discussed .Training

Expanded TobaccoIncrease levels of expanded tobacco in our products . Investigate Ovpossibility of expanding both other tobacco types or the partialexpansion of entire blends .

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10 . Circumference Measurement

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Primary request was for an instrument to accurately measure thecircumference of combined filter rods .Secondary consideration was more accurate measurement of filterrods made with porous plugwraps .Wrapping Material Preparation/Conditioning

12 . Longer Brand Runs

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Ideas included inventory leveling and cold storage particularlyfor small volume brands .Cigarette Paper Splice

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It was sugg.ested that cigarette paper splice tape would be%

.Qc :Qiimprinted with a message for example, yxe jacfe that would turn. . a c 3 : e . .a negative consumerA into a positive consumer rase E+o+~

State TaxIt was suggested that we should investigate means of helpingthe jobbers in applying state tax stamps. ideas ranged from an: / .~easy opening hot melt adhesive to giving the Pitney-Bowesoperators premiums such as Kent umbrellas .

15. Three Week Shutdown and 4-day work weekAfter considerable discussion it was generally agreed that thenegatives outweighed the positives on both of these suggestionsin that extended vacations would reduce our capacity and thefour day work week would be inconsistent with our third shiftexpansion .


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16 .' StandardizationThere was general agreement that further efforts toward increasedstandardization of cigarette components would result in greaterefficiency and economy. -

17 . Shrink-WrapIt was suggested that we investigate the possibility of palletizing/shrink-wrapping shipments to U . S. Possessions, thereby eliminatingcarton overwraps .

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lorillard new ideas

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