Purpose
This paper aims to inform social responsibility and social policy by describing the brand strategy of Australia’s largest tobacco manufacturer, British American Tobacco Australia (BATA), the year following the introduction of plain packaging and other regulation. Tobacco controls are a proven catalyst for reducing smoking, but manufacturers adapt swiftly seeking to minimise the impact of regulatory change.
Design/methodology/approach
BATA’s strategy was determined using 2012-2014 tobacco ingredient reports, recommended retail price lists and a supermarket retail audit.
Findings
The research identified over 70 BATA brand variants, offered in diverse packaging options, with new products and modified names appearing since 2012. In total 14 main brands are highly differentiated by price, with 45 per cent difference between the cheapest and the most expensive. Volume discounting occurs across packaging ranges, with twin packs offering best value and prices up to 10 per cent lower than those of single packs.
Originality/value
The research originality stems from the triangulation of three different data resources to establish brand strategy following increased regulation. The study confirms ongoing market segmentation using highly differentiated ranges, and it reveals the unintended consequences of corporate responses to regulation. Evolving variant names communicate product information and imagery previously imparted by pack design. Pricing strategies enable smokers to offset substantial excise increases through brand switching and volume buying. The research, therefore, reveals the potential for regulating these as yet unrestricted elements to enhance the impact of plain packaging and other tobacco controls, thereby further reducing the social impact of smoking.
PurposeAn increasingly important factor that influences purchasing decisions is that of environmental protection, particularly associated with climate change. This is particularly important as far as the purchase of consumer durables is concerned because of the energy that they consume; energy efficiency is one route towards minimizing environmental impact. Minimizing such impact is one factor towards achieving sustainability and therefore making possible sustainable development. This paper aims to address this issue.Design/methodology/approachThis paper shows that labeling is a crucial component of sustainable purchasing. It is based on literature and a review of current practice in various countries around the world.FindingsThe central argument of this paper is that the desire to make sustainable purchasing decisions necessitates better information to make decisions according to this criterion. This in turn requires manufacturers to provide better information through their labeling.Social implicationsThe paper shows that better information enables more sustainable consumer purchasing decisions.Originality/valueThis research extends knowledge of the components of sustainability and requirements for sustainable development, particularly as far as consumer purchasing decisions are concerned. It also has potentially important implications for manufacturers and also shows for them an important route towards achieving sustainable development for themselves and for the global economy.
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