In the 1998 lawsuit settlement the tobacco industry agreed to stop advertising in youth oriented mag

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In the 1998 lawsuit settlement the tobacco
industry agreed to stop advertising in youth
oriented magazines. So what really happened?
In one year tobacco advertising in youth
oriented magazines increased by one third.
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Four of the Five leading brands in the youth
market Marlboro, Camel, Newport and Kool
increased their advertising spending in youth
oriented publications. Kool alone increased its
spending by 75.
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Advertising of the youth preferred brands
Marlboro, Kool and Winston reached at least 89
of the 12-17 year old market in 1999.
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Targeting teens with advertising works 85 of
smokers aged 12-18 smoke the most heavily
advertised brands. Only about 1/3 of adult
smokers smoke these brands.
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Camels share of the youth market increased by
more than 50 when they introduced the cartoon
character Joe Camel Their share of the adult
market did not change as a result of the Joe
Camel ads.
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Why do convenience stores stock so much candy?
because they know kids are a large part of their
customer base. Big Tobacco knows this too, and
they make sure to take full advantage of the
opportunity to market their products to youth.
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Studies show that 3 out of 4 teens shop at a
convenience store at least once a week.
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Teens are far more likely to be influenced by
promotional pieces in convenience stores73 for
teens vs. 47 for adults.
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Since the tobacco industry was forced to take
down its billboards, the industry has greatly
increased its convenience store advertising to
reach its young target market.
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IncreasedConvenience Store AdvertisingTargeting
Youth Use of In-Store Ads up 27Exterior Ads
up 22In-Store Promotions 65 Tobacco Branded
Items up 63
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The Tobacco Industry spends more than 26 million
dollars a day, every day in advertising.
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Phillip Morris made 51.3 Billion in tobacco
revenue in 2002. (Marlboro, Basic, Virginia
Slims)
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Phillip Morris spent 57.3 million advertising in
youth oriented magazines in 2000 (despite
signing a 1998 settlement agreement which said
they would not target youth)
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R. J. Reynolds Tobacco made 8.5 billion in
tobacco revenue in 2001. (Camel, Winston,
Doral, Salem)
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R. J. Reynolds Tobacco spent 57 million
advertising in youth oriented magazines in
2000. (despite signing a 1998 settlement
agreement which said they would not target youth)
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Brown and Williamson Tobacco made 3.5 billion in
tobacco revenue in 2001. (Kool, Pall Mall,
Lucky Strike)
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Brown and Williamson Tobacco spent 5.9 million
advertising in youth oriented magazines in 2000.
(despite signing a 1998 settlement agreement
which said they would not target youth)
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Lorillard Tobacco made 4.5 billion in tobacco
revenue in 2001. (Newport, Kent, True)
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Lorillard Tobacco spent 6.2 million
advertising in youth oriented magazines in
2000.(despite signing a 1998 settlement
agreement which said they would not target youth)
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Targeting Youth

• Philip Morris should continue efforts for
  Marlboro in the youth market..."

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"Smoking a cigarette for the beginner is a
symbolic act. . . . 'I am no longer my mother's
child, I'm tough, I am an adventurer, I'm not
square.' . . . "

• 1969 draft report to the PM board of directors.

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"Long after adolescent preoccupation with
self-image has subsided, the cigarette will even
preempt food in times of scarcity on the smoker's
priority list."

• November 26, 1969 presentation to the PM Board of
  Directors

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"We are not sure that anything can be done to
halt a major exodus if one gets going among the
young.

• July 1974 Roper Organization report for Philip
  Morris,

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"Marlboro's phenomenal growth rate in the past
has been attributable in large part to our high
market penetration among young smokers ... 15 to
19 years old . . .

• May 21, 1975 report from PM researcher Myron E.
  Johnston

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"It is important to know as much as possible
about teenage smoking patterns and attitudes.
Today's teen-ager is tomorrow's potential regular
customer and the overwhelming majority of smokers
first begin to smoke while in their teens. . . .
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The smoking patterns of teen-agers are
particularly important to Philip Morris. . .

• March 31, 1981 market research report by Philip
  Morris researcher

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" Because of our high share of the market among
the youngest smokers, Philip Morris will suffer
more than the other companies from the decline in
the number of teenage smokers."

• March 31, 1981 market research report by Philip
  Morris researcher

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Targeting YouthThe ability to attract new
smokers and develop them into a young adult
franchise is key to brand development.

• 1999 Philip Morris report,

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... to reverse the preference of Marlboros among
younger smokers, I wonder whether comic strip
type copy might get a much higher readership
among younger people than any other type of
copy."

• April 12, 1973 RJR marketing memo

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"Pre-smokers."

• Term used in a1973 RJR draft paper to describe
  youth smokers when they are just trying
  cigarettes,

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" we are presently, and I believe unfairly,
constrained from directly promoting cigarettes to
the youth market

• 1973 RJR draft paper

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.... there is certainly nothing immoral or
unethical about our Company attempting to attract
those (youth) smokers to our products.

• 1973 RJR draft paper

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...Realistically, if our Company is to survive
and prosper, over the long term we must get our
share of the youth market."

• A 1973 RJR draft paper

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"The fragile, developing self-image of the young
person needs all the support and enhancement it
can get. Smoking may appear to enhance that
self-image in a variety of ways.

• 1973 RJR draft paper, "Some Thoughts About New
  Brands of Cigarettes For the Youth Market."

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"They represent tomorrow's cigarette business. .
. As this 14-24 age group matures, they will
account for a key share of the total cigarette
volume -- for at least the next 25 years."

• September 30, 1974 R.J. Reynolds Tobacco Co.
  marketing plan

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14 year old Adults?

• " to meet our marketing objective To increase
  our young adult franchise the brand must
  increase its share penetration among the 14-24
  age group which represent tomorrow's cigarette
  business.
• January 23, 1975 RJR memo from Mr. C.A. Tucker.

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Targeting YouthEvidence is now available to
indicate that the 14-to-18- year-old group is an
increasing segment of the smoking population."

• 1976 Claude Teague - R.J. Reynolds Tobacco Company

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Targeting YouthRJR-T must soon establish a
successful new brand in this (14-18 year old)
market if our position in the industry is to be
maintained over the long term."

• 1976 Claude Teague - R.J. Reynolds Tobacco Company

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No more than 5 percent of smokers start after
age 24. ...Younger adult smokers are the only
source of replacement smokers... If younger
adults turn away from smoking, the industry must
decline."

• February 29, 1984 RJR report

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"Overall, Camel advertising will be directed
toward using peer acceptance/influence to provide
the motivation for target smokers to select
Camel."

• March 12, 1986 letter, "Camel New Advertising
  Campaign Development."

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"Camel advertising will create the perception
that Camel smokers are non-conformist,
self-confident and project a cool attitude, which
is admired by their peers. . .

• March 12, 1986 letter, "Camel New Advertising
  Campaign Development."

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Aspiration to be perceived as cool/a member of
the in-group is one of the strongest influences
affecting the behavior of younger adult smokers."

• March 12, 1986 letter, "Camel New Advertising
  Campaign Development."

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Targeting Youth "It's a well-known fact that
teen-agers like sweet products. Honey might be
considered (as an additive)."

• September 1972 memo to Brown Williamson from
  Marketing Innovations,

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Targeting Youth "KOOL has shown little or no
growth in share of users in the 26 age group.
Growth is from 16-25 year olds . . .

• February 21, 1973 Brown Williamson marketing
  memo

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Targeting Youth...all magazines will be
reviewed to see how efficiently they reach this
(16 to 25-year-old) group and other groups as
well."

• February 21, 1973 Brown Williamson marketing
  memo

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The younger smoker is of pre-eminent importance

• Significant in numbers
• 'Lead in' to prime market
• Starts brand preference patterning
• Still volatile in habits"
• September 1974 marketing report

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Targeting Youth "The purpose of this research
was to gain insight into the perceptions,
attitudes and behavior of younger,
recently-starting smokers regarding initial
product usage, current smoking and health
concerns.

• 1974 report, "Young Adult Smoker Lifestyles and
  Attitudes."

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Targeting Youth...As long as young people are
curious, anticipatory of adulthood and seek
bravado, cigarettes will be tried."

• 1974 report, "Young Adult Smoker Lifestyles and
  Attitudes."

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Targeting YouthWe have been asked by our
client to come up with a package design a design
that is attractive to kids

• August 13, 1970 letter from Lorillard advertising
  account executive

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Targeting Youth The package design should be
geared to attract the youthful eye not the
ever-watchful eye of the Federal Government.

• August 13, 1970 letter from Lorillard advertising
  account executive.

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Targeting Youth" the base of our business is
the high school student."

• August 30, 1978 Lorillard memo.

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Disregarding the Health of Children / Infants

• "If children don't like to be in a smoky room,
  they'll leave."
• When asked by a shareholder about infants, who
  can't leave a smoky room, Harper stated,
• "At some point, they begin to crawl."
• Charles Harper,
• R.J. Reynolds Chairman

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Manipulating the political process

• "About 90 of legislation at the state level
  adversely affecting our industry will not be
  enacted... Why? Because we're good. That may
  sound arrogant, but I don't know any other way to
  put it."
• Walker MerrymanVice President, The Tobacco
  Institute

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Buying Political Supprt

• When asked why Philip Morris contributed
  1,687,478 in donations to political parties,
  Phillip Morris VP George Knox said it was
  because
• "we hope to get good government out of
  participating in the process."

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Misleading the public

• Refering to EPA scientist James Repace's damaging
  findings on second hand smoke
• " we should begin eroding (public) confidence in
  this work as soon as possible."
• Dr. Anthony Colucci,R.J. Reynolds (RJR)

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Lying under oath

• "We did not look at the underage market even
  though I am holding a document in my hand that
  says we did."
• Videotaped testimony of James MorganFormer
  president CEO of Philip Morris

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Misleading the public

• "When (Tobacco Industry sponsored) researchers
  found that cigarettes were bad and it was better
  not to smoke. we didn't publicize that."Dorothea
  Cohen, former Council for Tobacco Research
  employee, February 11, 1993

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Manipulating the political process

• When asked how a 50 billion tax break for
  tobacco companies was written into the July tax
  bill, Kenneth Kies, Staff Director, Joint
  Committee on Taxation replied, "The industry
  wrote it and submitted it, and we just used their
  language."