Marketing cigarettes when all else is unavailable: evidence of discounting in price-sensitive neighbourhoods

Abstract

The provision of substantial multi-pack discounts and lower prices in postcodes with a higher proportion of price-sensitive smokers (young people and those from lower socioeconomic groups) is consistent with targeted discounts being used as a tobacco marketing strategy. The results support policy interventions to counter selective discounts and to require disclosure of trade-based discounts.

Who stops selling? A systematic analysis of ex-tobacco retailers

“…A systematic audit of tobacco retailers conducted in New South Wales (NSW) (Australia's most populous state) identified, inter alia, retailers who were no longer selling tobacco,17 providing the opportunity to explore which retailers are most likely to stop selling tobacco, and why. Tobacco is widely available in Australia, and is typically sold in supermarkets, tobacconists, convenience stores, petrol stations, newsagents and licensed premises (ie, outlets licensed to sell alcohol).…”

“Smoking is bad, it's not cool…yet I'm still doing it”: Cues for tobacco consumption in a ‘dark’ market

“…The finding has particular importance by showing that removal of in-store advertising and point-ofsale promotion, while important, does not fully eliminate retail-related stimuli to smoke. Together with other studies documenting evidence that tobacco companies may manipulate the order of brand listing (Wakefield et al, 2012) and the price of cigarettes (Burton et al, 2014), these results have two implications. First, restricting the number of tobacco outlets, and, second, reducing the prominence of price listings could decrease the triggers to smoke that may undermine quit attempts.…”

“…In particular, participants reported that images of a tobacconist and a liquor store prompted thoughts about buying tobacco. An association between tobacconists and smoking is unsurprising, because tobacconists are the second largest retailer group for cigarettes in Australia, after supermarkets (PricewaterhouseCoopers, 2005), and also sell cigarettes at lower prices than other outlet types (Burton et al, 2014). By contrast, liquor stores have only a tiny percentage of the tobacco market share in Australia (PricewaterhouseCoopers, 2005).…”

“…Yet even in Australia's 'dark' market, tobacco companies may use retail outlets to promote tobacco, by ensuring brand prominence on price boards (Wakefield, Zacher, Scollo, & Durkin, 2012), and by offering lower prices in areas likely to contain more price-sensitive smokers (Burton et al, 2014). Practices in Australia may also provide a model for marketing elsewhere: the Marketing Director of British American Tobacco Australia has stated: '… one of the best things we can offer the world is what we do best, which is how to work, maximize, proactively drive our market position in a market that's completely dark…We need to export that … we know we have a lot of expatriates who come down to Australia for learning … they can come here and learn these techniques and take them back to Europe or Latin America or to the United States or to Africa …' (British American Tobacco Australasia, 2001;Chapman et al, 2003) The behavior of smokers in Australia is therefore of particular interest for two reasons.…”

Taxes, prices and illicit trade: the need for sound evidence

“…Burton et al 12 document the extent of price-reducing marketing strategies in Australia, including multi-pack deals and price discounts, concluding that the prevalence of these promotions was greatest in stores in neighbourhoods with more price sensitive consumers—those with higher percentages of young people and with lower socioeconomic status.…”