how tobacco companies ensure prime placement of their advertising and products in stores: interviews with retailers about tobacco company incentive programmes - document camera for sale

Background: about 81% of cigarette manufacturers in the United States spend on marketing to promote cigarette sales in stores.
Little is known about how these expenditures help manufacturers achieve their marketing goals in stores.
A better understanding of how tobacco companies influence the retail environment will help researchers and tobacco control activists monitor the presence of industry in stores.
Objective: to describe the types of tobacco company incentive programs provided to retailers, how they affect the store environment, and possible visual indicators for retailers to participate in incentive programs.
Research Design: in-
In 2001, in-depth qualitative interviews were conducted with convenience samples from 29 tobacco retailers. Setting: USA.
Key outcome measures: the type and requirements of the retailer incentive program offered by tobacco companies, and how the participation program changes its stores.
Results: retailers provide insights on how tobacco companies communicate promotional allowances and special offers to them and how these incentives shape the retail environment.
Retailers point out that tobacco companies exert huge control over their stores by asking for products to be placed in the most visible locations, as well as specific quantities and types of advertisements in the main locations of the store.
Retailers also describe how tobacco companies can lower prices by offering them quantity-based discounts, "buy two, buy one free" specials, and "lower" the prices of existing products.
Conclusion: Tobacco companies are concentrating marketing fundsof-
The store is the main channel for them to communicate with customers.
Therefore, all shoppers face occupation regardless of age or smoking status
Smoking information.
Given the financial resources tobacco companies spend on stores, researchers and tobacco control advocates should conduct a more careful review of the site.
Method spring 2001, in-
In-depth telephone interviews were conducted with 29 tobacco retailers in 21 states.
Investigation from Yahoo! Yellow Pages.
We have recruited some owners or managers of independent stores such as small grocery stores, convenience stores and liquor stores.
We also recruited the manager (
Or department manager)
Retail chain stores such as supermarkets, pharmacies, franchises and non-
Chain convenience stores.
The respondents included 15 store managers, 9 assistants or department managers and 5 shopkeepers.
Shop types include: 9 small grocery stores with gas and no gas (petrol)
There are 9 convenience stores without gas (petrol)
There are 5 liquor stores, 3 supermarket chains, 2 chain pharmacies and 1 mass hypermarket.
It has 14 stores on its own, 11 are part of the chain store, and 4 are franchise stores.
Procedures and measures interviews were conducted by Cooper Roberts research, based in San Francisco.
Prior to the start of the interview, a script was read out to the retailer to ensure anonymity and consent was obtained.
The interview lasted 30-45 minutes and participants were rewarded with a gift voucher of $100.
Discussion areas include: Types and requirements of retailer incentive programs offered by tobacco companies, how participating tobacco companies plan to change the store environment, and visual markers of tobacco company incentive programs.
The analysis interview is recorded, and the recording is completely transcribed. by-
Special analysis of the line. A multi-
Use the step process to find out the key findings from the interview.
Each author reviewed the interview records and identified the main topics of interest.
Each author assigns a subset of the main topics to the cluster retailer review accordingly.
The author then reviews the transcript and identifies key topics in a major subject area.
The retailer's verbatim offer illustrates these emerging themes.
All authors then reviewed and edited the topics, topics, and comments that gathered.
The results are divided into four categories :(1)
Competition between tobacco companies in sales and storefront space(2)
Description of incentive plan; (3)
Requirements for participation in these programmes; and (4)
Visual markers of incentives for tobacco companies in stores.
Retailers 'perception of competition among tobacco companies businesses confirm that stores are the main target of active marketing by tobacco companies.
They observe that competition is fierce as tobacco companies compete for sales.
The competition between Philip Morris and Reynolds is particularly fierce.
Retailers point out that smaller tobacco companies are at a competitive disadvantage compared to the two companies.
Most retailers say they take advantage of their competitive edge by participating in several incentive programs.
Tobacco companies are sensitive to their competitors.
Since one company has lowered the price of a pack or a box of cigarettes, another company may match the promotion by lowering the price of its own brand.
"The steam engine in the tobacco World controls the market and sets standards.
They set standards for everything.
They are leaders, and everyone follows.
Whether it's advertising, pricing, or promotion, everyone is looking at what they're doing.
Philip Morris is definitely the leader here.
No matter what they come out, RJR will follow. ” (
Independent convenience store manager with gas)
"Most of the time, marl Road [Philip Morris]
Compete with RJR, not small. If Camel [RJ Reynolds]
Is there an advertisement on Marl road?
They also cut prices.
Go to Newport occasionally [Lorillard]
Will provide things like coupons. ” (
Convenience store owner with gas)
Retailer description of incentive plan retailer describes two main mechanisms that tobacco companies use to communicate promotional allowances and special offers to them.
Retailers say that while volume discounts and display allowances vary greatly in the way they are configured, they are usually included in the contract.
Some retailers said,
Time-limited price reduction or sales)
Others noted that these were provided through inventory counts and invoices to record sales.
The contract and its usual terms are presented in this section, followed by a discussion of the repurchase.
Many retailers have reported that they have signed or have signed contracts with tobacco companies.
Retailers describe contracts in a variety of ways, so it seems that tobacco companies do not just provide a standard contract to all retailers, but customize various terms for individual stores or chain stores.
However, it is agreed that these companies offer bulk discounts through store contracts that meet minimum sales standards.
After the sales volume is determined by the average number of cartons sold, the tobacco company provides the retailer with a contract that specifies the level of payment paid on a regular basis (
For example, the discount range for cartons sold Quarterly is 25-90 cents).
In return for these payments, retailers say they must agree to comply with the product's placement specifications on display and shelves.
Although the quantity and terms are reviewed on a regular basis, such contracts are often long-term.
Payment is usually made quarterly.
Sometimes the contract even stipulates the price.
Tobacco companies are trying to control where their products are placed by providing such transactions to retailers, and the amount of space allocated to their products in the store.
"Philip Morris has signed contracts of different levels for different quantities.
The more quantity, the better the contract
The more money you get
The purchase, display area percentage, and display location are part of the contract.
Some contracts last for 30 days, others for quarterly contracts, and some for longer periods.
The requirements of the Demanding Road are the highest. ” (
Independent convenience store owner)
"Some sales reps need contracts;
They have different volumes.
The contract requires the best advertising location to be provided on the banner near or outside the first checkout counter in the store.
A payment will be made to the store. ” (
Independent wine manager.
"They come in and say if this is the market share they have in the region, I want you to have 45% space.
They said, 'I will provide the rack/case and pay you 35 cents a pack a year. '. . . .
You have to keep the right proportion of their products, put up signs and keep track of the cartons they pay you. ” (
Independent convenience store manager)
"Under our RJR contract, we cannot sell any cartons of the best value below $18. 14.
We cannot carry cigarettes for less than this price.
They pay quarterly for this.
They gave us a cardboard box and a big rack with a luggage rack.
Doral is also in the carton position at the front door.
It stands on the floor and customers can pick what they want.
We only sell cartons for $30. 03.
This is the highest we can do.
We bought it for $20.
14 at the Doral brand, it costs $27. 14. ” (
Independent Wine owner)
The common types of incentives offered by tobacco companies are acquisitions that are used to sell existing stocks.
Buydown specifies the sales time with a "cent discount" on each package in store inventory.
Unlike bulk discounts, the entire price reduction is passed on to the customer when the product is repurchased.
In order to gain sales opportunities, retailers must use special displays and signage provided by tobacco companies.
At the end of the repurchase period, the retailer repaid the difference between the inventory price and the price reduction to the retailer.
Since the purchase is usually paid after the sale of the product, the retailer basically pays before the sale.
According to our sample of retailers, these products are becoming more and more popular and may replace other forms of incentive programs.
Almost all of the retailers interviewed were involved in the acquisition.
You can get a rebate for buying any number of cartons.
We will not receive the form and receipt until we submit it.
Then we received a check for the difference.
We sell cigarettes and lose money before we get compensated. ” (
Independent convenience store manager with gas)
"They showed us an invoice. . .
It is counted as the inventory of the product.
It shows the amount and then the manufacturer gives us a check for the difference.
It reduces the cost of selling goods.
It is not based on volume (
One by one. )
You have to cut the price in order to buy it. ” (
Independent grocery/wine shop owner)
"They used to do this (T-
Shirts, cameras, hats, etc)
But in the tobacco lawsuit, they stopped revealing the information. . . .
They make up for this by buying back and things like that. ” (
Owner of independent grocery store with gas)
"We didn't sell anything in our location.
We are very central here, which means that we are rural and there is not much competition.
None of my products will go public unless requested by the sales rep. 25-cent buydown. ” (
Truck Stop/franchise convenience store manager with gas)
Retailers report that sales made through buybacks are provided on a regular basis and sometimes freeGo to the show.
Retailers say promotions for at least one brand have been going on.
Usually, if a company puts a premium brand on a special brand, another company will do the same for its premium brand.
Tobacco companies can provide a complete brand range at the time of acquisition (
For example, an extension of all marl Road brands)
Or a few brands at a time.
The amount reimbursed for each carton varies greatly between the brand and the company.
Some brands seem to be sold through constant buybacks, and in other cases different brands are rotated. “[We]
Repurchase is usually carried out all the time.
It spins around different brands and different companies. ” (
Independent convenience store owner)
"Mainly camels, Winston, Dolar and value [
Renault brand]—
They usually give us $6-7 per box. . . .
Camel and Winston will buy back for 2 months and 1 month holiday.
Philip Morris may buy marl Road and basic items at the same time. Kool [
Brown and Williamson
About $3 discount and Salem [RJ Reynolds]$4. ” (
Independent wine manager)
In exchange for volume discounts and buybacks, the requirements of the participants are expected to follow the requirements of the tobacco companies, place products and advertisements at specific locations, and significantly promote special prices.
Retailers clearly describe how tobacco companies compete with each other to get the best place for products in stores to gain high consumer visibility.
In addition to competing for the best location for the display unit, they want to make sure they have the best location on the display.
"Tobacco companies have all shown that they are trying to bid higher than each other. . .
They are trying to find space behind the counter where the shelves are located. . . .
They want customers to see the cigarettes and prices behind the cashier. ” (
Store manager with gas)
"Big companies want their products at the eye level.
Small companies such as Brown and Williamson usually offer only temporary display contracts. ” (
Independent convenience store Limitedowner)
"Philip Morris asked them to have 48% space.
Because this is the product they sell nationwide.
RJR does not specify a percentage of space. ” (
Independent Wine owner)“They [the reps]
Tell us what promotions are coming up and look for opportunitiesof-
Date the cigarette and check the location and percentage of its cigarette brand. ” (
Independent grocery store owner)
Although retailers point out that competition for gold space is fierce, they also point out that tobacco companies are increasingly supporting shop assistant sales methods.
Some retailers have expressed support for the shift as it reduces store theft.
"Manufacturers want cigarettes behind the service counter, not themselves
They will pay you a promotional fee as long as you do.
And some restrictions on how the racks are set, like 30% or whatever they want.
As far as I know, they actually want it behind the door or in front of the counter, so it's not their ownserve.
This is to comply with the legislation.
I did not argue because the shop was stolen. . . .
The development direction of manufacturers is positive.
Our inventory is more protected (
From store). ” (
Independent convenience store owner)
Prominent position of advertising.
The incentive agreement also requires a significant sign.
Many retailers claim that tobacco companies dictate how stores should advertise their products.
Retailers are instructed to place signs in major places such as product shelves and registration/counter space.
They describe their experience of placing logos in almost every part of the store.
"They sent a chart showing where the logo should go. ” (
Store manager, chain convenience store)
"I have such a place in the front window and at the door.
I put a sign on the special cigarette on the shelf. . . .
They will be put on a shelf on the road. . . .
You can use each logo in a different way.
They have double stickers so they can be seen on both sides of the door.
I will post about 5 logo for promotion, different size.
You will see a sign that says one for two or one for one.
We promote the current lowest price in the store.
Each logo has its own logo.
I know exactly what brand it is. ” (
Independent convenience store owner with gas)
According to retailers, the stores involved in the tobacco company incentive plan look different from those that are not involved.
The retailer observed that the products and discounted prices placed in the main locations (
Signs with special offers or sales)
, Multiple logos for the same store indicate that one store is participating in the incentive program.
Retailers were asked if and how to judge whether a store was involved in a program. “Yes.
Right next to what's on sale. . . .
I will look at their prices.
This is wise compared to what we have.
You can see the content of the promotion from the shelves and the display. . .
Shelf display at the top of the counter.
You will see signs all over the counter.
It's like a logo with a buy one get one and a brand.
I think only one price poster is their normal price. ” (
Deputy manager of a chain convenience store with gas)
"Just sign and sticker, coupon, just buy 2 get 1.
Can't sell without trading. . . .
Obviously because the brand is there, you know who the manufacturer is. (
Independent convenience store manager)“If (you)
It is obvious not to be motivated because everything will be full price.
Cigarettes will be buried in places you can't see. ” (
Independent wine manager)
Ads that show "special" prices often reflect cuts in incentive agreements.
Retailers say they usually need to display ads for these promotions.
"When I was doing a promotion, I put a cardboard logo on the window.
I have a logo on my display stand.
There are also price signs there.
I have the camel sign, Winston and the American spirit [RJ Reynolds].
They are small signs with signs. ” (
Independent Wine owner)
The paper adds that tobacco companies spend about 81% of their marketing money on retail store retailer incentives and product specials to ensure the main location of their products and ads and to their brands
It is estimated that about 2 out of 3 tobacco retailers have participated in at least one tobacco company incentive program.
This is the first qualitative study of the retailer description of the tobacco company incentive program.
-Tobacco retailers available
Describe the types of incentive programs offered by tobacco companies, how these incentive plans work, and in-depth information on how they affect the store environment.
The views of tobacco retailers on these topics have not been mentioned in past studies.
The information of this study will help guide the future at point-of-sale marketing.
"There will be signs of price cuts.
They will be near the checkout counter and the cigarette area.
They vary in size depending on what you want to do. ” (
Independent convenience store manager)
The purpose of this paper is to describe the experience of tobacco retailers participating in tobacco company incentive programs, how they affect their store environment, and possible visual indicators of retailers participating in incentive programs.
Interviews with retailers provide insights into how tobacco companies communicate promotional allowances and special offers to retailers and how these incentives shape the retail environment.
Retailers are highly familiar with these topics and their response is very consistent.
It is clear that the fiscal stimulus offered by tobacco companies to retailers helps increase the profits they make from their cigarette sales, but, they come with some conditions.
Tobacco companies implement substantial control over the retail environment by requiring retailers to place products in the most visible locations and place specific quantities and types of advertising in certain locations of the store.
The retailer identifies the visual logo of the retailer's participation in the incentive program, and the most obvious sign is the advertising price and the brand logo of the sale.
Other marks include the location of the company's brand on the advertisement, as well as the product display of prominent positions such as the counter area.
1998 main settlement agreement (MSA)
Between tobacco companies and state attorneys general, many of the traditional forms of advertising that tobacco companies have been using, such as billboards and transit advertising, have been removed and sponsorship has been restricted.
The retail store has become an important communication channel for tobacco companies, but it is relatively unregulated by MSA.
Since the adoption of MSA, there has been a significant increase in tobacco advertising and sales promotions in retail stores.
An advertising trade publication noted: "marketing restrictions continue to tighten and there is less and less advertising options for $50. 1 billion (tobacco)
Industry and every player working harder to scrap for sacred shelf space and pointsof-
The sales sign in the store-the vast majority of the cost of tobacco marketing is spent in the store.
"Retailers in this study confirm that the competition between tobacco companies is very fierce, and Philip Morris is currently dominant in the retail environment.
It is clear from these interviews that tobacco companies offer a wide range of incentive schemes that most retailers accept to ensure that their products and advertisements are well placed in a prominent position in the store
Retailers in this study describe several strategies tobacco companies use to lower prices, including volume-based discounts, buybacks, and special offers such as multiplepack discounts.
From 1991 to 2001,11, it seems contradictory that tobacco companies will increase the price of cigarettes by five times and then turn around and propose a series of plans to reduce the price of cigarettes.
Perhaps tobacco companies may use these strategies to mitigate the direct impact of these growth, or to protect their market share from serious discounts on brands.
13 Another reason may be that these strategies allow companies to have greater control over cigarette advertising, pricing and placement in retail stores, rather than simply lowering the wholesale price of cigarettes.
For example, these companies will not be able to ensure that the full price reduction is passed on to consumers like a repo, and merchants are not obliged to display signage and promotional materials at special prices.
Finally, the accounting or tax advantage associated with these strategies may not be fully understood yet.
Retailer insights into tobacco companies' marketing strategies provide useful information for community activists and local tobacco control programs.
Visual markers identified by retailers can provide guidance on how to evaluate tobacco marketing in stores.
The number and location of out-of-store ads, the number and location of ads and products around the counter inside the store, all of which indicate that retailers are participating in incentive programs.
However, further research on reliable markers is necessary.
It is also important to understand that the incentive plan for tobacco companies is indeed a communication between companies and retailers.
Retailers receive money from these incentive schemes in exchange for tobacco companies' control over tobacco marketing in their stores.
This mutually beneficial arrangement may pose a serious obstacle to voluntary reduction in tobacco marketing in a store environment.
Tobacco companies are concentrating their marketing funds. of-
The extent to which sales to stores have become their primary communication channel with smokers and non-smokerssmokers alike.
Regardless of age or smoking status, the store environment will expose all shoppers to professionals
Smoking messages, strong hints to smoking and stimulating cigarette purchases.
14, 15 given that tobacco companies have spent financial resources in stores for these purposes, it is surprising that the site has received relatively little attention from researchers, community activists and policy makers.
Because stores offer such a wide range of influence, it is necessary to look more closely at the tobacco marketing practices in this venue and their impact on consumers.
The study was supported by a grant (5 RO1 CA86232)
At the initiative of the community and the national tobacco control research department, from the National Cancer Institute.
Its content is entirely the responsibility of the author and does not necessarily represent the official view of the National Cancer Institute.
Reference the: B. M.
Introduction to advertising and promotion: integrating the perspective of marketing communication.
Boston: Irving, 1995↵Bloom P.
The role of slotting fees and trade promotion in shaping the way tobacco is marketed in retail stores.
Tobacco control; 10:340–4.
The Federal Trade Commission reports 2000 to Congress under the Federal Cigarette Labeling and Advertising Act.
The Federal Trade Commission, 2002.
↵ Feighery EC, Ribisl KM, schlesley NC, etc.
Cigarette advertising and promotion strategies for retail stores: results of a statewide survey in California.
Tobacco control; 10:184–8.
Details: OpenUrlAbstract/free
McElrath YM, Wakefield MA, GA ino GA, etc. Point-of-
Buy tobacco environment and change according to store type.
MMWR Morb Mortal Wkly rep2002; 51:184–7.
Sullivan M.
Market for entry fees and new products.
S1997 Journal of Law and Economics; 40:461–93.
OpenUrlCrossRef ↵ Feighery EC, Ribisl KM, Achabal DD, etc.
Retail trade incentives: how is the tobacco industry doing compared to other industries.
Public Health Association; 89:1564–6.
OpenUrlPubMedWeb of science.
Main settlement agreement.
National Association of Attorneys General, 1998.
Jack Ma, Terry Wakefield
McElrath YM, chalouka FJ, etc.
The tobacco industry is marketing at the point of purchase after the 1998 MSA billboard advertising ban.
Morning 2 public health92:937–40.
C. of OpenUrlCrossRefPubMedWeb Science. Store wars.
Advertising Age: 73 (2):4,18,20,22.
OpenUrl bobbeirnemi.
Big tobacco is getting tough. Brandweek2001; 29-30,32,34.
Cards mings KM, Molly CP, etc.
Taxes, prices and smoking: evidence of tobacco documents and the impact on the marketing strategy of tobacco companies.
Tobacco control 2. 2; 11(suppl I):i62–72.
OpenUrlAbstract/free full Text duplasquale C.
PM called it "marl road Thursday" and spent $650 on the fourth-quarter price promotion.
Advertising; 1,60. ↵Warner KE.
Selling cigarettes: advertising cigarettes and public health.
Washington, DC: American Public Health Association, 1986.
Alimrogers' T, Feighery EC, tenccem, etc.
Reduction of points for community mobilization-of-
Advertising for tobacco products.
Health education; 22:427–42.