Tobacco Market after the Total Ban on Cigarette Advertising

Each year, tobacco companies spend billions dollars to the campaigns, promoting sales. In many countries, direct advertising of cigarettes is limited.

Active proponents of fight against smoking are increasingly attacking the tobacco industry. U.S. courts in late 1990 – early 2000’s sustained a number of claims against tobacco companies, which concealed information on health effects of smoking from the consumer: cigarette manufacturers are still paying multibillion fines and indemnity.

Ban on cigarette advertising

Ban on cigarette advertising

In late 2002, the European Commission has banned cigarette advertising in newspapers, magazines, radio, television, the Internet. In 2003 it was adopted “the Framework Convention of the World Health Organization on Tobacco Control”, which provides a ban on all advertising, sales promotion and sponsorship activities by tobacco companies. The document was supported by 192 countries: many European countries introduced bans on smoking in public places, and some countries even banned smoking on the balconies of houses without permission from the neighbors. Since the beginning of 2009, the new fines for smoking in public places were introduced across the EU.

According to value of Nielsen, in 2007, three global players – JTI, Philip Morris and British American Tobacco – controlled 83.4% of the domestic market. All tobacco companies dream about leadership at the global and local markets. It is possible to increase the share by means of amalgamation and merger.

It is worth noting that even before the development of the WHO Convention, leaders of the world tobacco industry – JTI, Philip Morris and British American Tobacco – jumped the gun on sign voluntarily the memorandum, which had to restrict tobacco advertising around the world. A new set of rules came into force in late 2002. Companies were obliged to stop the spread of advertising, which contains information that smoking helps to achieve popularity and success in sports, sex or career. The document also contained the refusal to broadcast advertising of tobacco on television, radio and online. Furthermore, the agreement provides a ban on the participation of celebrities in promoting smoking. Previously, tobacco companies often turn to product placement. For example, Philip Morris placed Marlboro brand advertising in the film “Men in Black.” Cigarettes such as Kent and Lucky Strike (British American Tobacco) were seen in the movie “Beverly Hills”, and Camel (JTI) – in “Desperately Seeking Susan.”

The complete ban on tobacco advertising led the tobacco manufacturers to only one effective instrument of influence, which can be called direct advertising. This is the packaging of cigarettes, which itself promotes the product in retail outlets. Attack on the tobacco industry led to that the design of cigarette packs began to change more often.

Nevertheless there was the end of this step. From June 26, 2010 tobacco manufacturers had to turn out products with awesome inscriptions about the dangers of smoking on cigarette packs.

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