Driving Demand for Nicorette, NicoDerm CQ, and Commit – Lessons and Implications

1. Driving Demand for Nicorette, NicoDerm CQ, and Commit – Lessons and Implications Mike Wesnofske Director of Innovation & Policy US Smoking Control GlaxoSmithKline Consumer Healthcare

2. Overview • Major barriers we see to use of treatment • Relevance, safety concerns, access • Example programs trying to reach more smokers • Salience of brands

3. Tame the Beast Campaign • The objective of this campaign is to encourage more cold turkey preferrers to use TN and help more smokers quit

4. “Tame the Beast” Message Track Relevancy • Smoking over time increases the number of receptors in the brain that thrive on nicotine (3. Breese et al, 1997; 4. Perry et al, 1999) • Taking nicotine away, as during a quit attempt, causes the brain to “hunger” for nicotine, something a smoker feels as a craving, which can be quite intense. (6. Benowitz, 1993) • Intense cravings can sabotage willpower (7. Shiffman et al., 1996) • Therapeutic nicotine gives your willpower a fighting chance (10. Benowitz, 1993)

5. Tame the Beasts :30

6. 1-2-3 Second Chances to Quit for Free • Launched January 23 • Go to Way2Quit.com for free full-size box of therapeutic nicotine with $3.60 shipping/handling and completion of custom quit plan or $37 worth of coupons with completion of custom quit plan • Awareness through TV ad (one week), press release, local radio and TV interviews, materials to physicians, outreach to quit lines and parish nurses • Status • 6,000+ boxes and 3,000+ sets of coupons given out • >15% of visitors to site take advantage of offer • 33% never purchased therapeutic nicotine before

7. 1-2-3 Second Chances to Quit for Free – Interpretations and Implications • Believe that once someone visited way2quit.com, the system “worked” (15-20% took an action) • Conclusions • Achieved inadequate awareness, likely due to “messenger bias” • Not quite as simple as “If you offer it free, smokers will respond” • Next step • Fully understand the subsequent purchasing behavior of program participants

8. Impact of Innovation • In the past 12 months, GSK has introduced 2 flavor line extensions • Nicorette Fruit Chill • Commit Cherry • Have seen significant growth as a result of these improvements • Taste samples available

9. Relevance of Brands • Our brands are intertwined with quitting smoking in smoker’s minds • GSK’s brands still represent the majority of the OTC smoking control market even though private label products are ≈30% cheaper (as they do not do advertising)

10. Brand Relevance….Particularly for Smokers • In tobacco control, it is accepted that for cigarettes… • …brands matter • Loyalty, global impact • …advertising and promotion at all touch points matters • In our business, we are targeting the same consumers, and thus the same importance of branding

11. Differences • Our efforts target current adult smokers • They do not provide the same “badge” value as a cigarette, nor “coolness” • Our products do not promise nor deliver “pleasure”

12. Implications of the Salience of Brands • Up against the most effective consumer marketing enterprise, ever • Need to “fight fire with fire” • Ongoing marketing and promotion of cessation support is vital… • …and brands play a key role