Tracking a Moving Target An update on Tobacco Industry Marketing and Promotions

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Trackinga Moving TargetAn update on Tobacco
Industry Marketing and Promotions
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Content

• A little background first
• New and evolving tactics
• Bar promotions and event sponsorship
• Point of sale promotions Powerwalls
• Tactics on University / College Campuses
• New products Regional marketing tactics
• Smoking in the movies video games

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Tobacco Marketing Expenditures

• From 1987 2000 industry spending on marketing
  and communication ? significantly
• In 2001 2002, Canadian tobacco companies spent
  over 300 million on marcom (NSRA)

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Landmark Change to Tobacco Marketing in Canada

• 2003 the Federal Tobacco Act bans sponsorship
  advertising in Canada
• Advertising is now tightly regulated

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Tobacco Marketing Expenditures today

• Todays estimates of actual marketing costs are
  obscured by new definitions
• Hidden sponsorship
• Packaging
• Increasing pay-outs to retailers for countertop
  displays and Powerwalls

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Du Maurier Signature Packs

• Restrictions on tobacco marketing in Canada
  limited our options.
• We needed to differentiate ourselves. We needed
  to give consumers something that provided
  added-value.
• This left us with one way to develop and grow
  our brands the pack itself

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Bar Promotions
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Whats new in Bar Promotions Sponsorship

• Promotions have become more subtle
• Sponsorship extends to entire bar
• Sponsored club renovations including DSRs,
  outdoor patio smoking areas
• Similarly subtle event sponsorship

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Seven Nightclub and Lounge
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Export As silent event sponsorship

• Initiated in 1998
• Expanded in 2001
• Currently sponsor
• Wakestock
• Extreme Music Fest
• X-team bar visits across Canada

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Not so silent, is it
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Point of purchase promotions
Restrictions on tobacco advertising and promotion
the Elimination of sponsorship
Resource Re-allocation

• Redirected towards Point of Purchase Sales

http//www.nsra-adnf.ca/cms/file/pdf/Tobacco_Power
walls.pdf
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Power walls

• Convenience stores are the Industrys main
  channel for marketing and distribution
• Arguably the most important advertising medium
  available to the tobacco industry (NSRA)

http//www.nsra-adnf.ca/cms/file/pdf/Tobacco_Power
walls.pdf
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Power Walls

• 300M spent on marcom in 2002
• 77M paid to tobacco retailers in same period for
  stocking tobacco products (NSRA)
• The average convenience store receives 1,500 a
  year from the tobacco industry (ACNeilson)

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Preferential pay backs

• POP advertising expenditures are higher in
  convenience stores near schools and malls
• More money spent on POP to stores on university
  campuses
• Student Federation _at_ UOttawa offered 7500 to
  stock power wall displays at their campus store,
• Tobacco Free Ottawa U successfully lobbied
  against this sponsorship and the SF stopped
  accepting s in 2005

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POP not just for youth

• Tobacco on campus project
• 22 universities surveyed
• All had been approached and had participated in a
  form of tobacco marketing
• 76 sold tobacco products on their campuses
  (stores, bars etc)

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Tobacco on Campus

• Smoke-Free policies
• Regulate smoking mainly in residences, or campus
  bars
• Few regulated campus-wide
• Only U of T has rules against investing their
  (OUR) funds in tobacco companies.

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Tobacco NOT on campus

• Growing list of smoke-free campuses
• Dalhousie, Lethbridge, Lakehead, Carleton
• New movements
• Albertas Tobacco Free Campus advocates for
  policy changes across the province
• E-BUTT
• Leave the Pack Behind

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Smoking in video games

• Similar research to that done on impact of
  tobacco use in films (Villani, S. MD)
• Primary effects of media exposure (video games)
  are increased violent and aggressive behavior,
  and increased high-risk behaviors, including
  alcohol and tobacco use

Journal of American Academy of child and
adolescent psychiatry (2001)
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Smoking in Video Games

• Entertainment Software Ratings Board
• Ratings more comprehensive and specific than the
  film industry
• 24 content descriptors (on back)
• Includes tobacco reference and use

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Smoking in Video Games

• One search for tobacco reference yielded 7 games
• 4 rated everyone
• 3 rated Teen

Why must tobacco be referenced in childrens
video games ??
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In summary

• Weve talked about
• Target marketing in bars, campuses
• Slient Sponsorship
• Point of sale promotions
• Smoking in video games

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Call to Action

1. Support youth-driven tobacco industry denorm !
2. Expose hidden industry marketing tactics
3. Document actual marketing costs including listing
   fees and pay-outs to retailers
4. Advocate for policy change and a province wide
   ban on smoking and tobacco sales on Ontario
   university / college campuses
5. Denormalize tobacco industry products aimed at
   youth
6. Endorse the exclusion of tobacco use in movies
   and video games