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Tobacco Marketing to Young Adults

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... that includes glamour, recreation, excitement, ... Bob Bexon, president & CEO of Imperial Tobacco, as quoted in Marketing Magazine, March 17, 2003 ' ... – PowerPoint PPT presentation

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Title: Tobacco Marketing to Young Adults


1
Tobacco Marketing to Young Adults
  • Anne M. Lavack, Ph.D
  • Faculty of Administration,
  • University of Regina
  • October 31, 2003

2
Young Adult Smoking
  • 18-24 age group faces transition
  • completing their education
  • beginning full-time jobs
  • moving away from home
  • starting families of their own
  • wide range of lifestyles

3
Influences on Smoking
  • Some influences may increase smoking
  • increased income as a result of working
  • removal of parental restrictions
  • Other influences may reduce smoking
  • working in a non-smoking workplace
  • entering a relationship with a non-smoker
  • starting a family

4
Young Adult Smoking - Issues
  • Smoking inversely related to education and
    socio-economic status
  • highest smoking rates in lower education/lower
    socio-economic group
  • 85 of Canadians had first cigarette by age 18
  • 14-22 year olds do not understand addictive
    nature of smoking, nor do they know how risky
    smoking is in relation to other health risks

5
Canadian Smoking Prevalence CTUMS 2002
6
(No Transcript)
7
Marketing to Young Adults
  • Promotion
  • Advertising
  • Sponsorship
  • Websites
  • Bar Promotions
  • Direct Marketing
  • Public Relations
  • Point-of-Purchase
  • Product
  • New Products
  • Packaging
  • Price
  • Place

8
Effective Marketing
  • Effective marketing has allowed Imperial Tobacco
    Canada to obtain annual compound growth of about
    10 in the last 20 years in an environment that
    is decidedly hostile to its product
  • ITL president CEO Bob Bexon, as quoted in
    Marketing Magazine, March 17, 2003

9
ADVERTISING
10
What Kind of Tobacco Advertising is Still Allowed?
  • Brand preference advertising
  • "brand-preference advertising" means advertising
    that promotes a tobacco product by means of its
    brand characteristics
  • Information advertising
  • "information advertising" means advertising that
    provides factual information to the consumer
    about
  • a product and its characteristics or
  • the availability or price of a product or brand
    of product.

11
So What Kind of Tobacco Advertising is NOT
Allowed?
  • Must not show people, characters, or animals
  • No testimonials or endorsements
  • Must not be construed as appealing to young
    people
  • No lifestyle
  • Lifestyle advertising means advertising that
    associates a product with, or evokes a positive
    or negative emotion about or image of, a way of
    life such as one that includes glamour,
    recreation, excitement, vitality, risk or daring.

12
Where is Tobacco Advertising Still Allowed?
  • In personally addressed direct mail to adults
  • In publications with minimum 85 adult readership
  • This accounts for virtually all newspapers
    magazines!
  • In adult-only venues
  • This accounts for virtually all bars!

13
So Why Havent Tobacco Companies Been Running Ads?
  • Still challenging the 1997 Tobacco Act in court
  • Quebec Superior Court judge decided that Tobacco
    Act was constitutional in December 2002, but
    tobacco companies have appealed the ruling.
  • Tobacco companies feel that Tobacco Act is too
    restrictive, too punitive, and too vague
  • Tobacco companies have avoided running ads in
    order to prove their point.

14
Role of Advertising
  • The cigarette industry has been artfully
    maintaining that cigarette advertising has
    nothing to do with total sales. This is complete
    and utter nonsense. The industry knows it is
    nonsense. I am always amused by the suggestion
    that advertising, a function that has been shown
    to increase consumption of virtually every other
    product, somehow miraculously fails to work for
    tobacco products
  • Quote by Emerson Foote, former Chairman of the
    Board of McCann-Erickson Advertising, which
    handled 20 million in tobacco accounts, as cited
    in L. Heise, Unhealthy Alliance, World Watch,
    October 1988, p. 20.

15
Marketing Without Advertising
  • There are plenty of ways of marketing products
    without advertising. We have strong brands that
    we have built up over the years and they will
    continue to be promoted.
  • Statement by Gallahers spokesperson, as quoted in
    D. Rushe, Ban Sparks Price War on Cigarettes,
    Financial Mail on Sunday, May 11, 1997, p.1.

16
SPONSORSHIP
17
What the Tobacco Act says
  • No person in Canada shall, by means of a
    publication that is published outside Canada, a
    broadcast that originates outside Canada or any
    communication other than a publication or
    broadcast that originates outside Canada, promote
    any product the promotion of which is regulated
    under this Part, or disseminate promotional
    material that contains a tobacco product-related
    brand element in a way that is contrary to this
    Part. (Tobacco Act, 31. (3))

18
Beaming TV Radio Signals
  • As advertising bans tend to fall unevenly on
    countries within regions, companies should
    explore the opportunities to cooperate with one
    another by beaming TV and radio advertising into
    a banned country
  • BAT, Post Jestebury Conference, Future
    Communication Restrictions in Advertising, 1979,
    10 July c.7.1

19
Sponsorship
  • As traditional cigarette advertising
    restrictions continue to increase worldwide,
    sponsorships and other forms of parallel
    communications will become more important to
    successful brand marketing…
  • Bates 201818144

20
(No Transcript)
21
WEBSITES
22
BEFORE OCT. 1, 2003
23
AFTER OCT. 1, 2003
24
  • BEFORE OCT. 1, 2003

25
AFTER OCT. 1, 2003
26
  • BEFORE OCT. 1, 2003

27
AFTER OCT. 1, 2003
28
BAR PROMOTIONS
29
Bar Promotions
  • Bars are one of the few available adult-only
    venues where tobacco industry can advertise
    freely
  • A Canadian bar promotion web site
  • http//www.goldclubseries.ca/
  • for Benson Hedges

30
  • BEFORE OCT. 1, 2003

31
AFTER OCT. 1, 2003
32
Bar Environment
  • Bars are smoker friendly
  • Bars are smoker friendly sixty to seventy
    percent of patrons smoke.
  • Miami Market Vision of Success Bar and Restaurant
    Promotions. Philip Morris. June 8, 1995.

33
Bar Clientele
  • Bars, taverns, and lounges tend to cater to a
    particular clientele
  • Bar promotions can be tactical in nature. They
    can reach different audiences of similar age and
    shared interests. The atmosphere/theme of a given
    bar attracts specific age ranges and clientele of
    similar socioeconomic backgrounds.
  • Bar/Tavern Exploratory. Brown and Williamson.
    September 7, 1990.

34
Bar Promotions for Reaching Young Adults
  • Bar promotions present method for reaching young
    adults
  • a key factor in the success of Marlboro
    advertising has been its consistent targeting of
    18-24 year old men who are sophisticated,
    intelligent city dwellers… By targeting
    communications at the club/disco/bar environment
    (eg. sampling)…, PM successfully builds up brand
    loyalty at an early stage.
  • How Marlboro Led the Pack. British American
    Tobacco Company. March 1994.

35
Bar Promotions for Target Marketing
  • Potential for year-round visibility in some bars
  • Marlboro has signed a two year agreement with
    the owner of Americas Original Sports Bar as the
    exclusive tobacco sponsor and promoter in a chain
    of eight large sports bars owned by Harborage
    Inc. Marlboro will be highlighted in each club
    offering year round premier visibility for the
    brand at venues frequented by our most important
    audience, young adult males.
  • Marlboro Sports Bars 1992-1993 Marketing Plan.
    Philip Morris. 1992.

36
Bar Promotions Reinforcing Brand Image
  • Key role of bar promotion is to reinforce brand
    imagery
  • There are strategic uses for bar promotions.
    They can be developed, for example, to build
    imagery. …Bar promotions can be tailored to meet
    the needs of the brand and the desires of the
    audience. They can be used to develop and
    reinforce brand image.
  • Bar/Tavern Exploratory. Brown and Williamson.
    September 7, 1990.
  • Bar promotions link bar environment with a
    tobacco brand name

37
Bar Promotion as Tool in Database Marketing
  • Bar promos bar contests
  • Effective ways to gather names for database
    marketing
  • Create smoker profile information
  • Names can be used in mailing lists
  • Used to keep in touch with smokers.
  • Follow-up with direct marketing activities to
    younger adult smokers

38
Using Bar Contests to Gather Names for Direct
Marketing
  • BAT/Imperial draw for attendance at a local
    concert (circulated in bars, 2000)

39
Bar Environment Social Influence
  • Social influence (especially peer smoking and
    approval) is predictor of smoking behavior.
  • Bar environments present ideal social context to
    focus on opinion leaders, in order to influence
    smoking status and brand choice.
  • Bar environment may encourage brand or product
    trial in a state of reduced inhibitions

40
Extending the Reach of Bar Promotions
  • Bar related promotions can extend their reach
    beyond the bar, for example
  • Benson Hedges uses their web page to promote
    bar events
  • Lucky Strike bar promotion in 2000 included
    voting on the winners of band competitions via a
    national magazine campaign.
  • Camel ran a Camel Page in N.Y. newspapers to
    promote selected bars and musical events under
    the Camel brand name.

41
Cost-Effectiveness of Bar Promotions
  • It is important to point out that the cost per
    customer reached at a bar promotion would be
    greater than the cost associated with a retail
    promotion. However, the quality of the brand
    image created with bar nights would be greater
    than at retail.
  • Bar/Tavern Exploratory. Brown and Williamson.
    September 7, 1990.

42
Effectiveness of Bar Promotions
  • By promoting through the popular bars in the
    resort area, we can see the result of buying
    impulse through peer influence and promotional
    activity. While the results are not in yet, we
    have an indication that our product movement
    through the vending machines more than tripled in
    the bars we promoted in.
  • Marlboro Resort Program 1977. Philip Morris.
    March 3, 1977.

43
HORECA
  • Impulse purchase tends to characterise
    purchasing patterns within this outlet
    type....There is however enormous scope for
    display ie, umbrellas, beer mats, swizzle sticks,
    ash trays, menu holders etc.
  • Bates 01200278

44
Bar Promotions - Summary
  • Bar promotions
  • Strong emphasis on target marketing
  • Promote and reinforce brand image.
  • Recognition of psychological and social
    implications of the bar environment
  • Create involvement with target customer in a
    smoker-friendly environment

45
DIRECT MARKETING
46
Direct Marketing
  • one of the major opportunities in many markets
    is the use of direct marketing to communicate the
    brand message to customers and targeted
    prospects.
  • Bates 303652673

47
Custom Magazines
  • Imperial Tobacco "Real Edge" Magazine
  • features articles about movies, sports, sex, and
    video games with the overwhelming message that
    real men take real risks.
  • An article about cars in one issue tells us that
    "cars are fast in a scary, thrilling,
    white-knuckle, manly way. After all, no one winds
    up in extreme physical therapy after his computer
    crashes."

48
Imperial Tobacco Real Edge Mag
  • Daredevil Robbie Knievel tells readers that,
    "even if this means risking my life for bullshit,
    penny ante paydays, the only thing more
    depressing was the thought of taking a straight
    job."
  • Promotes the manly ideal of flouting authority
    "We're not here to tell you what to do," the
    editor writes, "Certainly you have enough sources
    for that in your life. You can make your own
    choices from here."

49
Direct Mail Contests
  • Contests are a way of gathering the names of
    smokers, and information on their brand
    preferences.
  • BAT/Imperial draw for an urban extravaganza in
    Toronto promoting du Maurier cigarettes (sent by
    direct mail, 2001)

Contest entry form
Draw for trip to Toronto promoting du
Maurier cigarettes
(sent by direct mail, 2001)
50
PUBLIC RELATIONS
51
Public Relations
  • What is still allowed
  • a report, commentary or opinion in respect of a
    tobacco product or a brand of tobacco product if
    no consideration is given by a manufacturer or
    retailer, directly or indirectly, for the
    reference to the tobacco product or brand in that
    report, commentary or opinion

52
Public Relations
  • Opportunities to establish and nurture friendly
    relations with media writers and presenters
    should be sought. Even when the media is banned,
    articles and programmes sympathetic to the
    industry can often be published and carefully
    chosen data should be compiled to take advantage
    of such opportunities.
  • Bates 102688990-1

53
Public Relations
  • What the Tobacco Act means
  • Tobacco companies can engage in major public
    relations efforts with tobacco-friendly
    journalists and encourage them to run pro-tobacco
    stories
  • Although tobacco companies cant reward
    journalists for this directly or indirectly, they
    can still entertain journalists
  • i.e., it would be difficult to construe
    entertainment as a reward

54
Public Relations Ideas
  • included developing tobacco-positive
    advertorials (ads made to look like newspaper
    articles) Bates 401097310-1
  • publishing photos of people smoking Bates
    109869108-10
  • product placements in movies Bates
    109869108-10
  • running cartoons attacking anti-smoking groups
    Bates 109869108-10
  • showing photographs of prominent people smoking
    Bates 109869101-2
  • developing public relations campaigns to make
    smoking more socially acceptable. Bates
    201828456.

55
NEW PRODUCTS
56
Responding to Customers
  • The companys key to marketing rests in
    satisfying customer needs more adroitly than
    your competitors.
  • Bob Bexon, president CEO of Imperial Tobacco,
    as quoted in Marketing Magazine, March 17, 2003
  • True marketing organizations are in the business
    of responding to consumer needs, not creating
    them.
  • Bob Bexon, president CEO of Imperial Tobacco,
    as quoted in Marketing Magazine, March 17, 2003
  • innovation becomes the key
  • Bates 502602571

57
Combating Sales Decline
  • Project Pearl is directed at expanding the
    market, or at least forestalling its decline.
  • Project Day represents the tactical end by which
    ITL may achieve competitive gains within the
    market of today and in the future. Unmet needs
    of smokers that could be satisfied by new or
    modified products, products which could delay the
    quitting process, are pursued.
  • As quoted in AG-21A, Creative Research, Project
    Viking, Volume I, A Behavioural Model of Smoking,
    Feb/March 1986, p.1 p.2.

58
New Types of Products
  • We have already seen the impediments to starting
    smoking tracing to a physical intolerance at
    early experiences. .... And among the
    Experimentor/ Rejector group, physical
    intolerance is by far the major reason for never
    starting smoking.... The implication is that a
    low irritation cigarette has a role.
  • AG-21C, Creative Research, Project Viking, Volume
    III Product Issues, Feb/March 1986, p.5.

59
Reducing the Amount of Quitting
What they say PRIVATELY
  • Strategically it would seem that reducing
    quitting is the most viable approach. But it
    would also seem that a product solution may not
    be sufficient on its own. An advocacy thrust may
    be necessary disaffected smokers do need some
    reassurance that they are not social pariahs.
  • AG-21C, Creative Research, Project Viking, Volume
    III Product Issues, Feb/March 1986, p.8.

60
Reducing the Amount of Quitting
What they say PUBLICLY
  • our marketing strategies have never been geared
    towards reversing the tide of the fundamental
    trend of declining tobacco consumption.
  • Bob Bexon, president CEO of Imperial Tobacco,
    as quoted in Marketing Magazine, March 17, 2003

61
Product Innovation-Project Twiggy
  • Project Twiggy investigated the potential for an
    ultra-slim cigarette product
  • This study confirmed the style-drive impression
    that Twiggy makes, as found in the first phase of
    research on the concept. It is seen as a brand
    for fashion-aware young women, largely career
    women or teens. Older respondents seemed to
    distance themselves from Twiggy, but a number of
    younger ones perceived first-person interest in
    it. The attractively diminutive packs were
    certainly part of the female-oriented image
  • AG-38, CB15.A Subject Project Twiggy Phase
    II, prepared by Kwechansky Marketing Research,
    Sept. 1987, p.07.

62
PACKAGING
63
Packaging
  • innovation in P.O.P., P.R. and packaging play a
    more vital role in a restricted media
    environment
  • Bates 110069998
  • the visual impact of the cigarette pack itself
    assuming more importance as a means of attracting
    consumer attention to the product
  • Bates 102699347-502

64
Unique Packaging
  • Although the package does not represent a
    functional benefit (no impact on freshness or
    ease of use), it does offer a point of
    uniqueness. Judgementally, we also believe the
    difference will appeal to the young target group.
    It will serve to reinforce the impression ... as
    a new contemporary cigarette.
  • AG- 16, Third Family Creative Direction
    Recommendation, dated Sept.19, 1984, prepared by
    J. Walter Thompson Advertising, 80064-0163, p.10.
    This section is discussing the use of a new
    side-slide pack.

65
Packaging Ideas
  • A) Inner foil embossed with symbols etc.
  • B) Inner foil, colour coordinated, or design
    printed.
  • C) Metalized paper, to replace inner foil.
  • D) Holograms. In-line printing is now feasible
    for flexible packaging, such as overwraps.
  • E) Plastic drums
  • F) Hinge lid packs for regular length
  • Carton imagery. total imagery on cartons.
  • H) New pack sizes, 5's, 10's, etc.
  • I) Optional carton sizes.
  • J) F.T.B. 25's.

66
POINT-OF-PURCHASE
67
Merchandising and Point-of-Purchase
  • the role of Merchandising is likely to become
    increasingly important in the event of
    advertising restrictions, and considerably more
    attention is, therefore, being given to this
    activity...
  • Bates 406114604, BC 00008410

68
Store Segmentation
  • We have to continue to fish where the fish
    are. That means refining our store segmentation
    approach (via store profiles, etc.). For the
    time being, we will agree that there are, at
    least two store types - Type A where young
    people, particularly young males tend to buy
    packages of predominantly regular length versions
    of products at 9 mgs or more, and - Others where
    the above group does not dominate.
  • AG-36, F85 Marketing Plan - Highlights, dated
    Nov. 10, 1983, p.6

69
Regulations Present Opportunity to be Creative!
  • While I would be stretching the point to say
    that we actually relish new regulation, we have
    learned that each new step changes the way we
    must compete, and that those who see it and get
    to it first have an immense advantage.
  • ITL president CEO Bob Bexon, as quoted in
    Marketing Magazine, March 17, 2003

70
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