Targeting Women and Minorities

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Targeting Women and Minorities

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Price- pack sizes (10's, loosies), coupons. Place- vending ... Price ... They got a lot of media attention (even an interview with Katie Couric on NBC) ... – PowerPoint PPT presentation

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Title: Targeting Women and Minorities


1
Targeting Women and Minorities
  • How Tobacco Companies conquered diverse markets
    with addiction and death

2
The Growing Problem
  • Female Smoking Rates
  • African American
  • Hispanic
  • Asian/Pacific Islander
  • American Indian

3
Female Smoking Behaviors
  • 178,000 women die each year from smoking in the
    U.S. (CDC Fact Sheet, 2005)
  • 6.6 of female middle school students are regular
    smokers in FL (2005 FYTS)
  • 15 of female high school students are regular
    smokers in FL (2005 FYTS)

4
African American Smoking Behavior
  • Since 1997 the rate of African American men
    smoking has increased from 26 to 32
  • Approx. 3 out of every 4 African American smokers
    prefer menthol cigarettes
  • Among African American teens, the three most
    preferred cigarettes are Newport, Kool and Salem.

5
Hispanics
  • 5 of Hispanic middle school students in FL
    report being a regular smoker (2005 FYTS)
  • 12.8 of Hispanic high school students in FL
    report being a regular smoker (2005 FYTS)
  • Lung cancer is the leading cause of cancer deaths
    among Hispanics
  • Hispanics are almost 3 times more likely to die
    from lung cancer than whites.

6
Asian American/Pacific Islander
  • Asian American men have the 2nd highest smoking
    rate of all male racial groups at 29.4
  • By the time Asian American youth graduate from
    high school, one third, or 33 are smokers.
    Asian American youth in grade 12 are more likely
    to report smoking a cigarette in the past month
    than other racial groups.

7
American Indian/Native Alaskan
  • Smoking rates among ethnicities indicates that
    smoking is most prevalent among American Indians
    than any other ethnic group.
  • Smokeless tobacco rates among American Indians is
    4.5 compared to 3.4 for whites.

8
Opportunity Knocks
  • For decades smoking was a privilege reserved for
    white, many times wealthy, males
  • 1920s-30s Tobacco companies begin targeting
    women in the U.S. and western Europe
  • Early 80s The industry found another target not
    yet penetratedminorities

9
Marketing Challengesreaching new/specific users
  • Aspirational (desirable)
  • Acceptable (socially and culturally normal)
  • Accessible (affordable and available)
  • Addictive

10
The Marketing Mix
  • Promotion-advertising, sponsorship, point of sale
    ads, product placement
  • Product brands, cigarette/package design
  • Price- pack sizes (10s, loosies), coupons
  • Place- vending machines, shops, ad placement

11
Promotion
12
Promotion
  • Smoking has been promoted as being
  • glamorous sociable
  • sophisticated relaxing
  • fun calming
  • romantic emancipated
  • sexy liberating
  • healthy rebellious
  • sporty slimming
  • fashionable cool

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16
Promotion
  • Relying on ethnic media (magazines)
  • Philip Morris is the leading advertiser in Latino
    markets RJR/Nabisco is in the top 10
  • Magazines targeting minorities earn greater
    revenues from cigarette advertising than do
    general market magazines

17
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18
Promotion
  • Big Tobacco has targeted Hispanic Americans by
    sponsoring major soccer events, putting on Latin
    music events, giving away free samples of
    cigarettes and attending Hispanic Festivals.
  • In the mid 1990s two major tobacco companies
    donated 75,000 to a well known National Hispanic
    Organization. That same year, the organization
    mailed 92,000 letters urging business owners and
    employees to lobby against a proposed tobacco tax
    increase.

19
Promotion
  • Studies have found a higher density of point of
    sale advertising and billboards in racial/ethnic
    communities

20
Promotion
21
Promotion
  • In 1991 Philip Morris gave more than 17 million
    in charitable contributions to organzations like
  • NAACP
  • United Negro College Fund
  • National Hispanic University
  • National Minority AUS Council
  • The Associated Black Charities

22
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23
Product
24
Products
  • Brands or product lines have been created to
    appeal directly to gender/ethnic populations
  • Brands may have a cultural significance (name,
    imagery) that link the target to his/her heritage

25
Product
  • Six specific menthol brands have been
    target-marketed to African Americans over the
    past 40 years.
  • One Tobacco companys marketing document proposed
    a new brand targeted specifically at inner city
    blacks. This brand was to be more potent20mg
    of tar. Why?

26
Blacks drink malt liquor rather than beer, and,
Blacks are less concerned with tar and nicotine
levels.http//tobaccodocuments.org
27
Product
  • Rio and Dorado brand cigarettes were developed to
    appeal to Latinos
  • American Spirit brand cigarettes are packaged and
    marketed to Native Americans/Alaskan Indians
  • Menthol X cigarettes which were marketed after
    Spike Lees movie Malcom X

28
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29
Product
30
Product
  • Creating brands of cigarettes that are shaped and
    marketed as slim or slender to appeal to women
  • Using womens desire to be thin as a reason to
    smoke (or avoid quitting)

31
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32
Price
33
Price
  • Tobacco companies must make their products both
    affordable and available to women and minorities.
  • Several strategies are used by Big Tobacco to
    ensure their products can be accessed by those
    groups with limited income.

34
Price
  • Packaging cigarettes in boxes of 10 instead of 20
    allows the companies to sell the smaller boxes at
    a reduced price.
  • Creating reduced priced budget brands, like
    Doral or Salem, with affluent names.
  • Creating brands with higher nicotine content that
    target occasional smokersenabling them to become
    addicted easier.

35
Price
  • The tobacco industry spent 1.32 billion in
    rebate and discount promotions on their cigarette
    brands to customers in 2003. (2005 FTC Report)
  • The tobacco industry also spent more in 2003 on
    direct mail offers and point of purchase
    discounts than any other year. (2005 FTC Report)
  • In some parts of the U.S., retailers are
    encouraged to sell loosies or single
    cigarettes.

36
Price
37
Price
38
Place
39
Place
  • Tobacco companies must ensure there are places to
    purchase and use their products
  • Placing tobacco products in self-serve vending
    machines or on the counter without the need for
    sales assistance assures a greater number of new
    users access to the product.

40
FIGHTING BACK
41
Fighting Back
  • Staying Informed
  • Educating your peers
  • Target your message against the industry for
    diverse populations
  • Know when a tobacco company is sponsoring an
    event in your community
  • Encourage magazines to reject tobacco ads

42
Fighting Back
  • The Uptown Example
  • In 1990, RJR wanted to test a new brand called
    Uptown in Philadelphia.
  • It was a brand specifically targeting African
    Americans with 19mg of nicotine per cigarettethe
    companys second most potent brand
  • Several community leaders, including youth, heard
    of this market test and created a grassroots
    movement against the product.
  • Their efforts were supported by media
  • RJR dropped the campaign and the product was
    never tested.

43
Fighting Back
  • Girl-cotte Example
  • Several teenage girls in Pennsylvania objected to
    a new line of shirts created by Ambercrombi
    Fitch. These shirts had derogatory messages
    about females
  • The girls organized a girl-cotte in their high
    school and local community against Ambercrombi.
  • They got a lot of media attention (even an
    interview with Katie Couric on NBC)
  • Ambercrombi Fitch stopped selling the shirts
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