Marketing Strategies of Tobacco Companies

Tobacco is the largest cash crop in the world and is a $200 billion per year industry. All those who participate in the process, from the farmers who grow it to the people who retail it earn money and provide jobs that benefit the economy. In addition to providing jobs, the tobacco industry also pays billions of dollars in taxes that contribute to the growth of many economies all around the world. The tobacco industry provides millions of jobs all over the world, and besides the revenues from growing and processing tobacco, it provides livelihood to millions of others because of the massive amounts spent on advertising and to wholesalers, retailers and small kiosks that sell cigarettes in all the countries in Africa and Asia.

These continents have the largest populations and large tobacco companies like Phillip Morris and British American Tobacco try to make it as easy as possible for them to sell cigarettes. Despite public health warnings by the medical profession and many governments about the hazards of smoking, the practice seems to be spreading instead of declining especially in Asia. China has probably the largest smoking population in the world. Although there are regulations to curb smoking, these regulations are never enforced because 7 to 10% of the country’s tax revenues are generated from the production and sale of tobacco products. Some countries in Asia like Malaysia have absolutely no regulations, and here it is not against the law to sell cigarettes to minors.

With stringent laws being in force in Western countries, large tobacco companies are now intensifying their efforts in third world countries to maintain their level of sales and profits. This includes massive advertising campaigns which include mammoth billboards and advertising in the media. Most countries like Indonesia have not signed any global agreement for the prevention of smoking, and tobacco companies use this advantage to the utmost in promoting cigarette, especially among the youth in such countries. Philip Morris is also fighting court cases in Britain for the limits imposed on cigarette advertising in many countries.

The efforts include intimidation efforts in Uruguay where laws now make it obligatory to cover 80 percent of the packet with health warnings. Philip Morris has sued the government saying that the laws are too strict and should be relaxed. The case also seeks damages for lost profits because of the implementation of the over-strict laws because these laws also limit all brands like Marlboro to a single package design because alternate designs are created for misleading smokers into thinking that certain brands are less harmful to their health.