Elsevier

The Lancet Oncology

Volume 3, Issue 8, August 2002, Pages 481-486
The Lancet Oncology

Review
Strategic marketing in the UK tobacco industry

https://doi.org/10.1016/S1470-2045(02)00817-3Get rights and content

Summary

Tobacco-industry marketing has played a central part in the global spread of tobacco use and addiction. Although the absolute size of the tobacco market has dwindled, the industry is still immensely successful, largely due to sophisticated and manipulative marketing strategies. The UK tobacco industry identifies target groups and builds enduring relationships based on careful brand management. Potential customers are exposed to brands which are likely to appeal to them most. Tobacco companies tailor their products to target markets by altering the content of tar and nicotine, and by adding flavourings to produce a distinctive taste. Marketing strategies ensure that the products are promoted heavily at the point of sale, and directed advertising and sponsorship agreements are used to increase the visibility of the brand and strengthen its image. Tobacco companies also target non-consumer organisations such as retailers and policy makers with the aim of creating the best possible business environment for tobacco sales. We review published evidence, internal-advertising-agency documents, and observational data about tobacco promotion, and discuss the use of targeted marketing strategies in the UK.

Section snippets

Marketing strategies that target specific markets

Tobacco companies develop and market brands by focusing on four main characteristics: product, price, placement, and promotion. These headings are central to the theory of marketing and enable brands to be directed at different consumer groups, according to their individual needs and values.

  • Product. Tobacco products are manufactured with amounts of nicotine, tar, and extra ingredients, which vary between brands. These subtle changes mean that each type of cigarette has a signature taste

Tobacco marketing in practice

Despite many recent developments which have restricted tobacco-company operations—including increased domestic and international regulation, a more informed and health-aware customer base, increased taxation, pressure from public-health bodies, and the burgeoning black market for tobacco—the industry as a whole remains immensely profitable and is worth about £12 billion per year (about $40 billion per year) in the UK alone.26 This impressive financial performance belies a steady decline in the

Customer orientation

The market for tobacco is not a homogeneous one; important sub-groups exist, which are separated by demographic characteristics, lifestyles, aspirations, and smoking habits. Therefore, tobacco companies divide the tobacco market into smaller target groups, for which they formulate separate products and marketing strategies. For example, there are brands specially designed for health-conscious women (low-tar brands), those for low-income smokers (economy brands), and others aimed at young

Building long-term relationships with customers

Ultimately, the purpose of all these marketing activities is to build positive and enduring relationships with customers; brand recognition is of vital importance in this process as smokers tend to form strong and long-term attachments to their product of choice. Forming associations between brands and evocative and symbolic images helps customers to differentiate between similar products and has been described by a tobacco industry representative as being “not just important, but essential”.55

Addressing the business context

The resources devoted by tobacco companies to building relationships with their customers are matched by their activities in other areas. In forming comprehensive marketing strategies, tobacco companies consider factors other than their customers that may influence the market. They actively seek to build relationships and forge links with third parties including retailers, policy makers, and organisations that have influence over public opinion.

Conclusion

Marketing is vital for maintaining the success of tobacco manufacturers; it is multifaceted and ubiquitous. The tobacco industry is moving its emphasis away from maximising single sales, towards building long-term relationships with customers and other key stakeholders in the tobacco market. This policy promotes competitive advantage and thereby boosts sales and profitability, but also enables the tobacco companies to retain legitimacy. Relationships are being built with policy makers,

Search strategy and selection criteria

References for this review include published literature about tobacco industry techniques retrieved from searches of literature databases including Medline, PubMed, INFOTRAK, SSI, IBSS, and Emerald. Only articles written in English were included and those published in peer-reviewed academic journals since 1990 were given priority. Combinations of the following search terms were used: “tobacco”, “cigarette”, “smoking”, “marketing”, “advertising”, “promotion”, “young people”, “branding”,

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