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Marketing Tobacco. Targeting youth Targeting women Targeting minorities Targeting consumers in developing countries. Targeting Youth: The Tobacco Settlement. 1998 tobacco settlement $100’s of millions in damages health costs paid by medicaid smoking related illnesses Marketing practices

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  • Targeting youth

  • Targeting women

  • Targeting minorities

  • Targeting consumers in developing countries


Targeting youth the tobacco settlement
Targeting Youth: The Tobacco Settlement

  • 1998 tobacco settlement

  • $100’s of millions in damages

    • health costs paid by medicaid

    • smoking related illnesses

  • Marketing practices

    • Focus on youth market


1 targeting youth 2 cartoon characters
1. Targeting Youth2. Cartoon characters

  • 1975 memo to RJ Reynolds Vice President:

    • “The Camel Brand must increase its share of penetration among the 14-24 age group…which represents tomorrow’s cigarette business”

  • 1973 memo, senior researcher:

    • “If our company is to survive and prosper, over the long term, we must get our share of the youth market.”




Settlement
Settlement olds

  • Bans use of cartoons in advertising, promotion, packaging or labeling

  • Prohibits targeting youth in advertising, promotions, or marketing

  • Bans industry actions aimed at initiating, maintaining or increasing youth smoking





Flavored cigarettes
Flavored cigarettes advertise in youth-oriented magazines

  • Brown & Williamson recently introduced

    • Caribbean Chill; Midnight Berry; Mocha Taboo; Mintrigue

  • B&W claims intent is to lure current smokers from other menthol brands

  • Advertises in bars and clubs, magazines like Playboy and Vanity Fair

    • readership 85% adult

  • Advocates claim virtually all new smokers under 19

  • Brands aimed at smokers 21-30 will influence 12-17 market


3 outdoor advertising
3. Outdoor advertising advertise in youth-oriented magazines

  • Bans all outdoor advertising, including:

    • billboards, signs and placards in arenas, stadiums, shopping malls and video game arcades

  • Limits advertising outside retail establishments to 14 square feet

  • Bans transit advertising of tobacco products



4 tobacco merchandise
4. Tobacco merchandise and other retail outlets

  • Thirty percent of kids 12 to 17 years old--both smokers and nonsmokers-- owned at least one tobacco promotional item

    • T-shirts, backpacks, CD players

  • Settlement banned distribution and sale of apparel and merchandise with brand-name logos


5 product placement and sponsorships
5. Product placement and sponsorships and other retail outlets

  • Bans payments to promote tobacco products in

    • Movies

    • television shows

    • theater productions or live performances

    • live or recorded music performances

    • videos and video games


  • Prohibits brand name sponsorship of and other retail outlets

    • events with significant youth audience

    • team sports

      • football, basketball, baseball, hockey, soccer

  • Prohibits sponsorship of events where paid participants or contestants are underage

  • Limits tobacco companies to one brand name sponsorship per year

  • Bans tobacco brand names for stadiums and arenas


6 free samples
6. Free samples and other retail outlets

  • "Samples encourage experimentation by providing minors with a risk-free and cost-free way to satisfy their curiosity"

  • Prohibits distribution of free samples except in facility or enclosed area where operator ensures no underage person is present


7 gifts based on purchases
7. Gifts based on purchases and other retail outlets

  • Bans gifts without proof of age


Targeting women
Targeting women and other retail outlets

  • Philip Morris began targeting women and girls in 1968

    • “You’ve come a long way baby”

  • Six years later smoking initiation for 12-year old girls had increased 110%

  • Virginia Slims “Find your voice” campaign suggested connection between smoking and empowerment and attractiveness


Dakota cigarettes
Dakota cigarettes and other retail outlets

  • While smoking was declining

    • rate among women was declining more slowly

    • Rate among young women was actually increasing

  • Link between income, education and smoking

    • Smoking rates higher among low-income groups and those with only high school education

  • Half of female smokers age 18-24 smoked Marlboro


  • Target market was “virile” young females with low-to-moderate incomes and modest educations

  • Profile of group:

    • Entry-level job

    • Spent free time at

      • tractor pulls, hot rod shows, watching television (especially Roseanne) and going to dance clubs and bars


  • Marketing plan called for low-to-moderate incomes and modest educations

    • Promoting male strip shows

    • Giving away premiums:

      • washable tattoos

      • “hunk-oriented” calendars

      • his-and-her interlocking beer mugs


Targeting minorities
Targeting Minorities low-to-moderate incomes and modest educations


Uptown cigarettes
Uptown cigarettes low-to-moderate incomes and modest educations

  • Menthol

  • Package designed to be opened from bottom

  • Philadelphia was 40% black

  • Advertising was mainly in magazines and on billboards

    • Magazines were Ebony and Jet

    • Billboards mainly in black neighborhoods

    • Ads used African American models


  • Denied targeting African Americans low-to-moderate incomes and modest educations

  • Targeted at current smokers

    • thus no increase in health problems

  • Patronizing and racist to assume African-Americans couldn’t make same adult decisions as any other racial group

    • i.e., whether to smoke and, if so, which brand to smoke


Menthol x
Menthol X low-to-moderate incomes and modest educations

  • “It was just an X. Call us dense if you want, but it [the connection between the package and the film] didn’t occur to us”


Targeting consumers in developing countries
Targeting consumers in developing countries low-to-moderate incomes and modest educations

  • Framework Convention on Tobacco Control (FCTC)

  • Treaty initiated by World Health Association (WHO)

  • Negotiations began in 1999

  • Objective:

    • “to protect present and future generations from the devastating health, social, environmental and economic consequences of tobacco consumption and exposure to tobacco smoke”


  • Comprehensive low-to-moderate incomes and modest educations ban on tobacco advertising, promotion and sponsorship

  • Prohibit misleading or deceptive terms on packages

    • “light”, “mild”, “low tar”

  • Implement effective measures to protect nonsmokers from tobacco smoke in public places

  • Implement health warning labels that cover minimum 30% of principle display area of each packet


  • Treaty becomes international law when low-to-moderate incomes and modest educationsratified by 40 countries

  • As of April, 2004

    • 102 countries had signed

    • 9 countries ratified

  • As of April, 2005

    • 167 countries signed

    • 55 countries ratified


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