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An Insight Into Tobacco Marketing

By

B.v.Eisenhart-Rothe 529390

Kaoneka, Rajab H. 529990

B.v.Eisenhart-Rothe & Kaoneka R. H 25.10.2011

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CONTENT:

Company Overview (facts&figures)

Competition (the worlds major tobacco groups) The WFPHA

Growth?

New Markets/ Developing World

Advertising & Promotion

International Marketing Standards

External allegations

Youth smoking prevention Conclusion

References


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Company Overview

Formed in 1902

BAT is the 2nd largest tobacco group in the world

2002 turnover 24.6 billion pounds

2002 profits 2.6 billion pounds

Portfolio of 300 Brands (Dunhill, Lucky Strike, HB, Prince)

HQ in London (UK)

85 factories in 66 countries

Employs 86000 people worldwide

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Competition: The worlds major Tobacco groups

Altria (Philip Morris): 16.4%

BAT: 15.4%

RJ Reynolds: 7.2%

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According to the WFPHA:

1/3 of the worlds population aged 15 and above smoke

Tobacco is a known cause of 25 diseases, killing nearly

3.5 million people each year (predicted 10 million in

2025)

Governments introduced: clearer health warnings,

advertising and sponsorship bans, public smoking

restrictions Leading to a decline in smoking in the western world

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GROWTH?

The global tobacco markets continue to prosper

with a dramatic increase in cigarette

consumption worldwide!

WHY?

Demographic change & Urbanisation

OR:

Lack of basic information of the harmful effects of

smoking in Developing countries?

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New Markets/ Developing World:

Mergers & takeovers in Cambodia, Turkey, Hungary and Mexico

1999 merger with Rothmans International the 4th largest tobacco

company in the world

Leading position in Latin America, Africa, Asia, Austral-asia Result:

greater lobbying power

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New Markets/ Developing World:

Consumption increased by 50% from 1975 to 1995

BAT is purchasing previously state-owned factories Setting up joint ventures with existing

state-enterprises

Building new factories

Currently manufacturing more than half of its cigarettes in Asia,Australia

and Latin America (closer to the tobacco leaf)

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Advertisement & Promotion

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VS.


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Advertisement & Promotion

Woman in non-industrialized countries one of Bats prime target

markets

Advertising campaigns to promote the ideals of the West:

independence, affluence and sex appeal

creating a new demand among woman and young people

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Advertising & Promotion

Many countries have banned cigarette advertising

But.....

Indirect forms of advertising such as sponsorship ofsports, rock concerts, discos and the arts.

Kent Travel Agency, John Player Whiskey,

Lucky Strike Clothing, Benson &Hedges Coffee

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Example: Hungary /the 6th biggest cigarette consumer in the world

Donates Money to a shelter for homeless men

Sponsors a town theatre

Donates money to a clinic for the treatment of smoking related

diseases

Creates jobs

Creating a positive image reflected in a lack of action taken against

BAT for advertising outside the stores despite it being against

the law!

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Other Examples of Indirekt Marketing:

Chinese National Basketball Team

Hong Kong - Beijing car rally

B&H gives out free cigarettes in discos (Sri Lanka and

Beijing)

Sponsors pop music magazines (Sri Lanka)

Handing out free cigarettes in college

campuses and shopping malls (Sri Lanka)

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International Marketing Standards

They were developed in 2001

Give us a consistent,

responsible approach to

marketing across the Group.

The challenge for us is that

some of our competitors do

not always hold themselves tosuch high standards, which

can give them a short-term

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External allegations

It is not our policyto use social

networking sites to

promote our brands

and our IMS includeclear guidelines on

age verification for

any web

advertising.

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Youth smoking prevention Campaign

If any cigarette company told me

not to smoke, Id think it was some

sort of slyness on their part.

--13-year-old male student

They make the cigarettes, then

will tell us not to smoke themisnt

there any other target for their

mischief?

--15-year-old male student

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BAT claims that it sees smoking as an informed choice made by

adults only Analysis of the phrase:-

Informedmeans that potential smokers have information that

allows them to decide whether or not to smoke.

ByadultBAT means people over the age of 18. How does one

attempt to promote a product only to those over age 18?

Choiceimplies free will. But the nicotine in cigarettes is

extremely addictive,

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BATs messages consist of:-

a 30-second television ad,

three one-minute radio scripts,

a billboard,

and a sticker.

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Specific Marketing Tactics

Point-of-Sale (POS)

Advertising displays where

tobacco products are sold.

POS exposes all shoppers,

regardless of age and

smoking status, to pro-smoking messages and

imagery.

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Mother and child at tobacco kiosk (Russia, 2007)


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Sports Sponsorship Brand-Stretching

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Child in Marlboro sweatshirt (Senegal, 1998)


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Industry Sponsored Youth

Prevention Programs

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Industry-sponsored Youth PreventionProgram poster (Ukraine, 2001)


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Conclusion

Despite punitive antismoking legislation, and antismoking

education, the smoking rates are stillholding steady

Countries in developed world and global health organisations,

tobacco companies such as BAT are going from strength to

strength.

Smoking rates in Asian countries rose 10 percent higher than if

their tobacco markets had not been opend up to International

competition

The smoking rate among teenegers rose higher and higher

despite all strong bans

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Discussion

Television ad

The television ad shows a young boy trying to appear cool

by smoking cigarettes.

Meanwhile, his classmate gains success in cricket. A girl

looks disgusted at the smoking, and joins the cricket player

instead; meanwhile, the smoker crushes his (empty) pack of

cigarettes and then goes to join them.

What is the problem with this ad?

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Discussion

Television ad

The crumbling of the pack is meant to indicate that the boy

is fed up and wont smoke anymore,

The pack appears to be empty. It could just be that he isout of cigarettes.

There is no mention of any of the health effects of smoking,

that smoking is addictive, that it causes disease in non-

smokers, and that smoking kills.

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Discussion

Radio scripts

There are three one-minute radio scripts.

For working children

A young boys boss asks him if he smokes. The boy hesitates,

then admits he does: I really want to be like the grown ups.

The boss replies, ...the more you learn, the more you willbecome an expert! No need to smoke. Understood? The boy

agrees. The voice over states, Everybody should come forward

to prevent the underage from smoking, and the final song is,

We are free, we are independent, we are smart, we dontsmoke.

What is the problem with the script?

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Discussion

Radio scripts

The script puts forward the idea that smoking is an adult activity

and in the line about the underage not smoking.

The boss does not give any reasons not to smoke, nor does he

state that he himself is a non-smoker. The idea thatthe more

you learn, the more you will become an expertcould includesmoking as something that the boy can learn to be more grown

up.

The lineEverybody should come forward to prevent the

underage from smoking,andfree and independentsuggeststhe heavy hand of adult authorityprecisely the authority against

which youth rebel when they smoke.

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Discussion

Is BAT truly, as it claims, a responsible company seeking

to address the problem of youth smoking?

The whole campaign in fact a clever public relations scheme in

order to stop attempts at legislation and to deflect criticism from

the manufacturers of the only consumer product in the world

which, when used as intended, kills its user

Are BATs youth smoking prevention ads designed to

appeal to youth? What are the messages?

They criticized the basis of the campaign, saying that smoking is

harmful for everyone, not just those under age 18. They said that

making something forbidden increases its appeal for youth.

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References

http://www.ncbi.nlm.nih.gov/pubmed/20395406

http://www.bat.com/groupfs/sites/BAT_89HK76.nsf/vwPagesW

ebLive/DO8C6MQ8?opendocument

UICC Tobacco Control Fact Sheet 1, The case for banning

advertising and promotion of tobacco.

Campaign for Tobacco-Free Kids, Illegal Pathways to Illegal

Profits: The Big Cigarette Companies and International

Smuggling, 2001.

Case study BAT: An insight into tobacco marketing

BAT, Be smart, a campaign for youth smoking prevention,

2000.

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http://www.ncbi.nlm.nih.gov/pubmed/20395406http://www.bat.com/groupfs/sites/BAT_89HK76.nsf/vwPagesWebLive/DO8C6MQ8?opendocumenthttp://www.bat.com/groupfs/sites/BAT_89HK76.nsf/vwPagesWebLive/DO8C6MQ8?opendocumenthttp://www.bat.com/groupfs/sites/BAT_89HK76.nsf/vwPagesWebLive/DO8C6MQ8?opendocumenthttp://www.bat.com/groupfs/sites/BAT_89HK76.nsf/vwPagesWebLive/DO8C6MQ8?opendocumenthttp://www.ncbi.nlm.nih.gov/pubmed/20395406


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Thank you for your attention!

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