sample="quota" bates="ATX02_0075226" isource="atc" decade="1990" class="ui" date="19941119" 28 THE AMERICAN TOBACCO COMPANY SECTION SALES MANAGER/MILITARY SALES MANAGER AT 2102-8 (4-94) FIELD SALES WEEKLY RECAP WEEK ENDING November 19, 1994 REPORTED BY J. A. Brennan, III, Section Sales Manger, M0030 ACCOMPANIED BY WORKED WITH DSM N. L., Wallace, Sales Representatives D.J. Campbell, R. J. Maucere, J. C. Hawthorne AREA(S) WORKED Washington, DC Waldorf, Silver Spring,MD MARKET OVERVIEW (include Competitive Trends) MONTCLAIR: MONTCLAIR is on the increase in this market. Distribution of the best 6 is 81.1%, which I feel is great considering distribution is hard to gain and maintain in the District of Columbia. #MM SOM for September is 1.99%, up .90 from the same time last year. Much of this share was gained by utilizing MONTCLAIR tactical to meet the competition. Total case target under the American Performers has already exceeded 1993 sales by 349 cases, but not all distributors will meet their targets. ASC programs are plentiful at retail, but keeping product on hand in the district on a continuous basis is still an uphill battle. Off invoice programs should help resolve some of this. MISTY: MISTY SOM is holding steady at 1.15% for the last two 3MM. All stores visited show where MISTY sales were at a high level and had good back up stock. No activity was seen on behalf of VA Slim with the exception of billboards. Product is being bought down when needed. This district has an abundance of MISTY outlet guides left. We will redistribute them. Distribution in M35 is at 68.9% which is very low. The lack of space in DC retailers contributes to this. Improvement in distribution has been seen since the last trip. The D&D program has been under utilized, which will change. 61 more cases purchased by distributors and M35 will be able to exceed 1993 targets for the American Performers. Once again, some distributors will not exceed 1993 purchases. CARLTON: CARLTON 3MM SOM has been holding at 1.53%, which is at lower levels than 1993. However, American Performers case target has already exceeded 1993 purchases. Premium ASC package displays were not seen in DC calls visited, this is not a CARLTON market. CARLTON Box 100 distribution in calls with a weekly carton volume of 100+ is 89.7%. No Merit or Now efforts were observed. AVA BRANDS: Distribution is at 19.5% of calls with a weekly carton volume of 100+, which is better than the previous coverage. September 3MM SOM at .59 is the first month in the last 6 that has shown an increase and that is .18% over 1993. Much more effort with success was observed this week. The AVA incentive program developed by Mr. Hughes should develop a lot of success. United Wholesale in DC just took on a Reynolds private label called Smokes in which they are going to aggressively work the menthol flavors for the balance of the year. Introduction price will be less than PRIVATE STOCK. OTHER (Other Brands, Test Market, Regional Programs, Etc) RIVIERA Baltimore test included two assignment in this district. In the stores visited, the sales were good to strong; and the retailers are reordering. MSA does not reflect this progress because of the size of the ADI. SIGNIFICANT OBSERVATIONS/SUCCESSES/IDEAS: The DC ADI is too large and diverse to get a correct picture of what is going on in this market. I will submit a proposal to convert this ADI into 3 - Washington, DC, Northern Virginia, and Rockville, MD. To avoid distribution voids in DC, we need to develop a test in the inner city spiff similar to the MMA spiff for off invoice accounts. It would only be utilized for product ordered in, not sold in. 25c a carton for both MONTCLAIR and MISTY. This spiff should be utilized whether we have a buy down or not. NEW COMPETITIVE/NEW BRANDS ACTIVITY: Kool - 1W1 & 1W2 - self shippers - great wholesale effort - 100 cases of free packs sent in to United Capri - 1995 personal planner with 1 pack purchase Kool - 7-11 Only - free soft drink with 2 pack purchase Newport - 40c VPR Camel - 40c VPR Camel - 2W2 Doral - 1W1 & 1W2 - 61 cases of free packs sent to United Cambridge - 90 12M cases of free packs being sent to United to be used for 1W1, 1W2 and various other program. FTA/HVD: New Brand Details (Include name, Market areas, Distribution %, Movement at Retail, Display Activity/Type) SPECIAL PEN TECHNOLOGY REPORT All reps and DSM's have reported that this has been the best thing since Apple Pie. I did not see, nor was it reported, that there were any shortage of productivity because of an intimidation factor of new machinery. It is easy to use and reporting procedures were faster and accuracy of reporting must be improved greatly. Items that need to be looked at for future enhancement: Vacancy - Profiles need to be viewed (not changed) by anyone filling in for vacancies or long term illness. This way reps filling in can carry on with existing programs. The comment section should be accessible to all so notes can be made to assist new reps, and the DSM should be able to correct profiles when a call is made. Bonus Addendum - We need the ability to add the addendum at the time the call is made. Problems the first week: Some phone lines could not adapt to the on-line transmitting. Batteries did not last long enough due to the chargers not doing their job. PERSONAL COMMENTS: Comments are few due to the nature of the work. 1. Seeing how Pen Tech is working (3 reps in 1 1/2 days) 2. One day spent interviewing for vacancy. SR D.J. Campbell has built a good rapport with dealers and in most stores proper programs are being worked. Donald must make sure retailers know when his next visit will be and write an A.O. to support sales and programs. Displays must be placed in the best consumer view position possible. Good POS and window placements were observed. Donald must make sure he is using his good rapport to maximize our programs. He also must call the IRM hot line when problems occur with his new computer. No interim written. Overall - FMR SR R.J. Maucere is developing into a good seasoned rep. Ron's route consists mainly of changes which makes his independents much more important and the frequencies must reflect that. Displays were in good position, however, retailers are waiting for him to supply them with our products. AVA presentations must become more the norm versus the exception. No interim written Overall - ER Sr. J.C. Hawthorne is also a good seasoned rep. Retailers know John, and he has no problem placing our programs. No distribution voids were observed. John needs to be more aggressive with our off invoice programs. John also needs to be aware of new stores that open in his area. No interim written Overall - ER DSM N. L. Wallace has accepted the duties of DSM with open eyes. He did not realize the diversities of the situations that can happen. He handles problems like a pro and does not procrastinate. He communicates well with senior management and seeks advice when needed. There is much more consistency in M35 and everybody is working as a team to improve our business. No interim written Overall - FMR Personal comments are not to be forwarded to Stamford. -3-