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News » 2009 » July » Successful marketing strategies by tobacco companies are likely to be banned soon

Successful marketing strategies by tobacco companies are likely to be banned soon


In the middle of this month, the United Kingdom Upper Chamber of the Parliament, the House of Lords are beginning the consideration of the proposal to amend the Public Health Bill. The introduced amendment proposes to remove the cigarettes and other tobacco products from the shelves in order to prevent teenagers from seeing colorful cigarette packs and trying cigarettes.

The Financial Times declared that the “shining cigarette displays” which are the subject of the debates and argues are “luring minors to cigarettes.” Therefore, hiding them from sight, and removing cigarettes from shelves would not violate smokers’ rights to select their favorite cigarette brands. According to the article author, the overwhelming majority of smokers are already aware what cigarettes they are going to purchase even before entering the store.

So, the question is whether the measures considered by the government wouldn’t be to drastic and even interfering with constitution. Does tobacco industry indeed depend on making their production apparent on the stores’ shelves? Is it an efficient marketing strategy to attract new customers or it would also impact on current smokers?

In an interview with Financial Times ASH spokesman Lionel McGivney spoke about the attraction for kids, saying that putting cigarettes out of shelves is a scientifically proven efficient strategy to prevent children from picking up the habit. Therefore, without the help of constant and colorful advertisements, the tobacco industry would not be able to attract new customers, but only retain existing customers, since they are proven to be loyal to the brand they have once chosen.

At the same time health experts state that there is one more successful marketing strategy for tobacco industry to keep new customers coming. Statistics shows that despite the anti-smoking policy implemented in the UK five years ago, tobacco industry managed to expand the existing assortment by introducing new brand varieties. For instance, Benson & Hedges, developed 8 new varieties within 10 years, growing from 4 variants in 1998 to 12 varieties in 2008. Action on Smoking and Health (ASH) claims that other major brands significantly expanded their brand family during previous years, and they keep developing new ones.

In Canada, the legislation, banning any product with the name, or peculiar design of a cigarette company or with any words related to tobacco industry, such as cigarettes, cigarillos, etc., that are used to encourage sales of a particular tobacco product faced numerous complaints from retailers, who cited too, enforcement and government interference in business.

However, the government said that the measures were aimed at preventing potential consumers from seeing cigarettes and getting lured to them, and increasing brand loyalty among current smokers.

The Toronto Tribune published an interview with several people affected by the latter legislation, among them was carpenter John Gaudeaut, who said that he used to switch to different brands from time to time in order to taste all the existing products, however the latest legislation made his comparing habit unrealizable.

Another respondent, Bruce Quinlan, a convenience store owner, stated that the legislation hurt the business dramatically; however, there was one positive moment in the issue with draconian anti-tobacco measures, and namely the possibility to collect money from marketers of other products who wanted to place their posters in place of cigarettes ads that have been put out.

Smoke-free Canada presented some data for workshop dedicated to smokers’ education about the hazards of tobacco, here are some facts they reported:

  • In 2007, the tobacco companies invested around $50 million to hang PowerWalls only in Toronto.
  • Researches demonstrate that PowerWalls and other advertising materials increase sales of average product by up to 25%.
  • The restriction of cigarette displays would contribute to reduction of underage smoking rates by 30 percent.
  • Banning PowerWalls would as well prevent luring adults who decided to give up smoking earlier.