tobacco industry marketing tactics - stagetime...
TRANSCRIPT
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Tobacco Industry Marketing Tactics
Gabriel Glissmeyer Betsy Brock, MPH
Association for Nonsmokers-Minnesota
2017 Minnesota Tobacco Control Conference January 25, 2017
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About Us
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Tracking Tobacco Industry Marketing
• ANSR started this work in 2010
• Currently, the work is funded by ClearWay MinnesotaSM
• We use the information we gather to:
– Build the evidence base
– Inform tobacco control professionals
– Inform tobacco control policy
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Agenda
• Background: tobacco marketing regulation • Direct to consumer marketing overview and
examples – Email marketing – Web marketing – Social media marketing – Direct mail marketing
• Case studies: – Marlboro Black – Swisher Sweets digital marketing
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Regulation of Marketing 101
• Marketing is largely treated as “speech” and is protected by the First Amendment
• Very difficult to regulate
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Tobacco Advertising and Promotion Restrictions
• 1966: Cigarette warning labels required on packs
• 1971: Cigarette advertising banned from airways
• 1986: Smokeless Tobacco warning labels required
• 1997: End of Joe Camel
• 1998: Tobacco settlements
• 2009: Family Smoking Prevention and Tobacco Control Act
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• Master Settlement Agreement (1998)
• Smokeless Master Settlement Agreement (1998)
• MN Tobacco Settlement (1998)
These settlements are legal agreements between Attorneys General and the largest tobacco companies. Most smaller tobacco companies are not part of the settlements.
Regulation of Tobacco Advertising and Promotion
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MN Tobacco Settlement
• Largest monetary recovery in state history
• $6.1 billion lump sum with ongoing payments in perpetuity
• Recovery of 33-million previously secret tobacco company documents
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Settlements: No More Marketing to Children
• No more tobacco billboards.
• No more branded merchandise.
• No more ads in magazines with “high youth readership.”
• No more paid placement of cigarettes in movies.
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In 2014, the tobacco companies spent $9.5 billion marketing cigarettes and smokeless tobacco products in the U.S.
• That is more than $26 million dollars per day
• In Minnesota, this translates to $115.8 million per year or more than $317,000 per day
FTC and Campaign for Tobacco-Free Kids
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• Direct marketing is one way companies can reach consumers
– Opt-in and under the radar
– Started in 1970s
– Seen as a way to reach existing customers, recruit new customers, and build brand loyalty
– Personalized, one-on-one communication
Direct Marketing
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Direct Marketing
• There is evidence that this type of marketing is used to target:
– Women
– People of low SES status
– Young adult smokers
– Menthol smokers
Sources: Brown-Johnson et al., 2014; Richardson et al., 2014; Lewis et al., 2015
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Direct Marketing
• These strategies are:
– Harder to justify regulating.
– Partially shield the industry from claims that they are targeting kids.
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Direct Marketing Mediums
• Web
• Mobile technology
• Direct mail
• In-person recruitment
• Social media…
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Web Marketing
• All of the largest tobacco companies operate “brand websites”
–Access to (most of) these websites is restricted by age
• These websites serve a variety of purposes such as: sweepstake/contest promotion, coupon distribution, and social networking
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February 2016
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March 2016
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March 2016
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July, 2012 This contest featured over $4 million in music-themed prizes
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March, 2013
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Camel Snus Website: July, 2013
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February, 2013
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Marlboro website: October, 2014
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Camel Snus Website: July, 2013
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Longhorn website: July, 2013
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Longhorn website: July, 2013
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Grizzly website: July, 2013
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Grizzly website: July, 2013
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Grizzly website: July, 2013- “Wood chipper” video
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Social Media Marketing
• Growing issue
• Larger tobacco companies avoid social media, smaller companies use the medium
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January 2017
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January 2017
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Email Marketing
• Email marketing is primarily used to drive traffic to tobacco company websites. Emphasis on promotion of:
– Sweepstakes
– Coupons
– New products
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Email from Virginia Slims: January 2017 Subject line: “Grab your coupons and check out some wonderful winter recipes!”
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Email from General Snus: December 2015 Subject line: “Celebrate the season with exclusive savings”
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Email from Vuse: December, 2015 Subject line: “Order new VUSE Connect While Supplies Last”
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Email from Grizzly: December, 2015 Subject line: “Happy Holidays from Grizzly”
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Email from Marlboro: September, 2014
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Email from Marlboro “Flavor Makers” September, 2014
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Email from Marlboro “Black” September, 2014
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Email from Black & Mild: July, 2013
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Email from Swisher Sweets: September, 2014
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Email from Marlboro: February, 2013
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Email from MarkTen: October, 2014
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Email from Citizens for Tobacco Rights: October, 2014
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Email from Marlboro, December, 2015 Subject line: Betsy, claim your coupon and get in on the action. This email promotes multiple purposes: coupons, new product, and contests. Also, the new Marlboro app is promoted at the bottom.
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Email Marketing: Observational Study
• January 2010-May 2015 (n=6,990)
• Companies use email to communicate as often as 8-9x per month
• Most common purposes: contest promotion (54%), promotion of website content (39%), and coupon promotion (16%)
• Emails promoting coupons were also nearly 2x more likely to promote menthol (95% CI: 1.52-2.37)
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Direct Mail Marketing
• Primary vehicle for the distribution of tobacco coupons.
• Tobacco coupons are an important tobacco company strategy, they are used to:
–Manipulate the price of tobacco products
– Encourage users to try a new product or brand extension
–Discourage quitting
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Camel Snus
coupon mailing.
January, 2012
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“Tobacco industry marketing: an analysis
of direct mail coupons and giveaways”
Published in Tobacco Control
Brock, B., Schillo, B.A., & Moilanen, M.
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Direct Mail Marketing: Observational Study
• Analyzed a sample of 659 mailings (July, 2011-June, 2012)
• 85.6% contained at least one tobacco coupon
• The average estimated coupon value per mailing was $4.17
• Camel and Marlboro mailings heavily promoted snus, often alongside cigarettes
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Mobile Apps
• Emerging issue
• Limited (so far!)
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Camel App (The Oasis)
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Marlboro App (MHQ)
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Marlboro App (MHQ)
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Coming soon! Grizzly App
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Case Study: Marlboro Black
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Marlboro
• Marlboro is one of the most valuable global brands
• Marlboro is the number one cigarette in the U.S.
– 41% market share
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What image do you think of when you hear “Marlboro”?
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Marlboro Black
• Released in 2010
• A Cigarette for Millenials
• Cheaper price, usually $1-$1.50 less
• “Bold” marketing with “urban” feel
• Menthol emphasis: a direct challenge to Newport
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Marlboro “Black” website: October, 2014
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January 2017
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January 2017
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January 2017
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Email from Marlboro Black: December 2016 Subject line: “The next chapter in bold menthol is here”
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Case Study: Swisher Sweets
• Available in many flavors, some are seasonal
• Cheap
• Number #2 cigar brand among youth aged 12-17
• Highly enhanced marketing campaign in last 1-2 years which relies heavily on social media marketing and online promotion
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January 2017
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January 2017
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January 2017
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January 2017
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Austin Takeover April 2016
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Key Takeaways
• The tobacco industry is very creative, knows how to reach consumers under our radar
• We are up against a powerful industry with lots of $$
• We should expose the tobacco industry at every chance we get
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Want to take on the industry?
• Join us for: – Menthol Coalition meetings, last Wednesday of every
other month (Feb 1) at NorthPoint Clinic
– Statewide tobacco coalition, every month at ClearWay Minnesota
– Follow our Instagram page @projectwatchansr
651-646-3005
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Thank You!