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8/3/2019 BAT Presentation 1
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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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Youth smoking prevention Campaign
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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Youth smoking prevention Campaign
BATs messages consist of:-
a 30-second television ad,
three one-minute radio scripts,
a billboard,
and a sticker.
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Youth smoking prevention Campaign
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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Youth smoking prevention Campaign
Specific Marketing Tactics
Sports Sponsorship Brand-Stretching
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Child in Marlboro sweatshirt (Senegal, 1998)
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Youth smoking prevention Campaign
Specific Marketing Tactics
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/203954068/3/2019 BAT Presentation 1
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Thank you for your attention!