‘Friends with benefits’: how tobacco companies influence sales through the provision of incentives and benefits to retailers

Watts, Christina; Burton, Suzan; Freeman, Becky; Phillips, Fiona; Kennington, Kelly; Scollo, Michelle; Lindorff, Kylie; Egger, Sam

doi:10.1136/tobaccocontrol-2019-055383

Cited by 8 publications

(16 citation statements)

References 18 publications

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“…This is also in line with similar research on IQOS marketing at POS from Canada46 and with previous research exploring PMI’s strategies to adapt to tobacco control legislation for combustible tobacco products 47–49. PMI is also influencing the IQOS and/or HEETS retail environment through direct communication with retailers, as was also previously shown in other studies assessing tobacco POS retailers 12–14. Marketing strategies that were reported in this study closely resemble previously noted past marketing for combustible products, including special displays, discounts and incentives, and product launches with female salespersons 6 12 13…”

Section: Discussionsupporting

confidence: 90%

“…PMI is also influencing the IQOS and/or HEETS retail environment through direct communication with retailers, as was also previously shown in other studies assessing tobacco POS retailers 12–14. Marketing strategies that were reported in this study closely resemble previously noted past marketing for combustible products, including special displays, discounts and incentives, and product launches with female salespersons 6 12 13…”

Section: Discussionsupporting

confidence: 81%

“…This study suggests that tobacco companies use similar strategies to promote IQOS at POS as previously used for combustible products 12–14. In addition, they invest efforts to differentiate IQOS and HEETS from combustible tobacco products.…”

Section: Discussionmentioning

confidence: 77%

“…As restrictions to POS marketing expanded to include a POS display ban and plain packaging, PMI increased marketing strategies directed at the retailers themselves and price discounts to the customers, both legal under the current tobacco control legislation in Israel. These findings underscore the importance of using multiple strategies (eg, POS audits,10 32 35 36 merchant surveys/interviews6 12 13 37–40 and mystery shopper assessments41 42) to better understand the retail environment as new products emerge, changes to tobacco legislation and regulation are implemented, and societal circumstances alter the retail environment 17 43 44…”

Section: Discussionmentioning

confidence: 95%

“…Tobacco advertisement and POS display bans are effective tobacco control strategies; they reduce exposure to displays, brand awareness, impulse purchases and smoking norms 1 7–11. Such bans achieve high compliance; nonetheless, tobacco companies continue to directly incentivise retailers and use different promotional strategies 12 13. For example, tobacco companies used direct communication with retailers (eg, provide retailers with materials to help explain changes to consumers) to circumvent plain packaging in the UK 14…”

Section: Introductionmentioning

confidence: 99%

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IQOS marketing strategies at point-of-sales: a cross-sectional survey with retailers

et al. 2022

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BackgroundThe point-of-sale (POS) is adapting to marketing restrictions, societal changes and the inclusion of new products, such as heated tobacco products (eg, Philip Morris International’s (PMI) IQOS device and HEETS sticks). We aimed to assess (1) PMI’s influences on IQOS/HEETS POS marketing and (2) the implications of the new legislation (POS display ban and plain packaging) for retailers.MethodsA cross-sectional survey of 43 IQOS/HEETS POS owners/managers in five Israeli cities assessed POS and participant characteristics, marketing strategies, attitudes towards IQOS, and POS implications of the legislation and COVID-19, including industry reactions. Bivariate analysis explored differences between POS selling of the IQOS device versus POS selling of HEETS only.ResultsA higher proportion of those carrying IQOS (n=15) (vs HEETS only) had special displays (100% vs 17.9%, p<0.001) and interacted with specific IQOS salespersons (73.3% vs 28.6%, p=0.013). Common promotions were financial incentives based on HEETS sales for retailers (37.5%) and price discounts on HEETS for customers (48.7%). Most indicated positive attitudes towards IQOS (72.1%; eg, ‘less harmful’), opposition to the legislation (62.7%), limited government assistance to implement the legislation (62.8%), and industry provision of display cases and/or signage to comply with the legislation (67.4%).ConclusionPMI uses similar tactics to promote IQOS at POS as they previously used for combustible products, including direct promotional activities with retailers, and circumvented legislation by using special displays and signage. Governments need to ban these measures and support retailers with clear practical guidance regarding the implementation of marketing restrictions at POS.

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Section: Discussionsupporting

confidence: 90%

Section: Discussionsupporting

confidence: 81%

Section: Discussionmentioning

confidence: 77%

Section: Discussionmentioning

confidence: 95%

Section: Introductionmentioning

confidence: 99%

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IQOS marketing strategies at point-of-sales: a cross-sectional survey with retailers

et al. 2022

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‘The last line of marketing’: Covert tobacco marketing tactics as revealed by former tobacco industry employees

Watts

Burton

Freeman

2020

Global Public Health

Self Cite

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In countries with bans on tobacco advertising and promotion, tobacco companies have focused their promotional expenditure on business-tobusiness relationship marketing activities aimed at retailers. However, evidence of such activities has been obtained through secondary sources only, including surveys and interviews with tobacco retailers and analyses of tobacco industry documents. To understand the breadth of promotional strategies employed in the retail sector to enhance tobacco sales, 10 semi-structured interviews were conducted with a sample of key informants who formerly worked for tobacco companies operating in Australia. A qualitative iterative approach was used to develop a thematic analysis of tobacco brand promotion and retailer marketing. Participants described tobacco retail marketing and promotion strategies that were categorised into three primary themes: (1) the provision of financial incentives, such as price promotions, cash payments and rebates; (2) the provision of experiential incentives, such as all-expenses paid vacations, exclusive parties and events, and (3) targeted marketing and education, which enabled retailers to market to consumers on behalf of tobacco companies. Such strategies had the ultimate objective of increasing market share and driving sales. For countries to comprehensively restrict all tobacco marketing, legislation must be introduced to outlaw these activities in tobacco advertising and promotion legislation.

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Electronic nicotine delivery system advertising in business‐to‐business publications, United States, 2015–2020

Marynak

Welding

Kelley

et al. 2022

Drug and Alcohol Review

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‘Friends with benefits’: how tobacco companies influence sales through the provision of incentives and benefits to retailers

Cited by 8 publications

References 18 publications

IQOS marketing strategies at point-of-sales: a cross-sectional survey with retailers

IQOS marketing strategies at point-of-sales: a cross-sectional survey with retailers

‘The last line of marketing’: Covert tobacco marketing tactics as revealed by former tobacco industry employees

Electronic nicotine delivery system advertising in business‐to‐business publications, United States, 2015–2020

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