RJR Nabisco Inc. (Formerly R.J. Reynolds Industries, Inc.) and Consolidated Subsidiaries - Page 9

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               chosen to achieve the intended positioning through                     
               consistent visual imagery;                                             
               (2)  Creation of advertising “executions”, which are the               
               specific individual advertisements that implement the theme            
               or themes of the campaign; and                                         
               (3)  Determination of “media placement”, which involves the            
               selection of the appropriate media forums for placement of             
               the individual advertising executions, such as magazines,              
               newspapers, billboards, and in-store (“point of sale”)                 
               displays.                                                              
          During the period a campaign is running, a company customarily              
          uses a number of executions in order to maintain consumer                   
          interest in the campaign.  A company also may alter media                   
          placements of the executions while a campaign runs.                         
               G.  Longevity of Graphic Designs and Advertising Campaigns             
               At the time graphic designs or advertising campaigns are               
          introduced, no one can determine how long the graphic designs,              
          advertising campaigns, or elements of such designs or campaigns             
          will be used, including whether or not they will be used for more           
          or less than a single year.  Numerous advertising campaigns,                
          advertising campaign slogans, and advertising characters (e.g.,             
          the Maytag repairman) have lasted for more than a single year.              
          Companies may use identical advertising executions for more than            
          a single year.  For example, television commercials for Budweiser           
          beer featuring Clydesdale horses and Norelco shavers featuring              
          Santa Claus run annually during the yearend holiday season and              
          three commercials from the “Dr. Mom” campaign for Robitussin                






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Last modified: May 25, 2011