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Effectiveness of Direct Mail on the Cigarette Vending Industry

An Investigation into the Effectiveness of Direct Mail on the Cigarette Vending Industry in the United Kingdom Abstract

Irrespective of the mode and methods adopted for marketing, including direct mail, the cigarette vending industry continues to prosper not only in the United Kingdom, but also across the world. At the same time there is a continuous rise in the spread of a number of diseases directly related with smoking including chronic respiratory diseases, cardiovascular diseases and various types of cancers in turn leading to increased death rates amongst the smoking populations. One of the major causes of premature deaths in developing countries, the figures for United Kingdom alone show that approximately 120,000 individuals die every year from diseases directly related to smoking, which is an alarming 20 percent of all deaths in a given year. A similar study on smoking also revealed that cancer alone accounts for a nearly a third of all deaths from smoking, and another one sixth die from other causes related to smoking. Figures for the younger generation entering the smoking populations of the United Kingdom showed that there was a gradual rise between the years 1988 and 1997, and a somewhat similar rise in the figures amongst adult smoking populations. Marketing departments of cigarette manufacturing companies around the world would least care that an individual smoking cigarette on a regular basis more than doubles the risk of dying before he or she reaches the age of 65. If there is any consolation for these companies adopting various lucrative direct mail strategies for vending and marketing cigarettes, smoking by pregnant women have been found to result in severe repercussions for the foetus as well as new born baby. These include an increased risk of miscarriage, reduced birth weight and potential for prenatal deaths. In similar context, parents who continue to smoke after pregnancy invite increased chances of 'sudden death syndrome' in their infants. The following dissertation will however limit its discussions and studies, and present its findings on the effectiveness of direct mail in the cigarette vending industry of the United Kingdom. (DOH, 1998)

Introduction

One of the most widely accepted facts and one that has been proven beyond any doubt is that smoking poses a number of health risks. In addition smokers are more than likely to contract certain diseases in comparison to those who do not smoke at all. It is also a fact that smoking is largely accepted as an addictive habit, and with the passage of time, and advances in the study of and implications of smoking all too openly reveal that today it is not merely a addictive habit; on the contrary it is a collection of human behaviors which also includes smoking. It must also be borne in mind that since it is an addiction, and for some indeed a very strong habit, it is wrong to assume that this habit cannot be given up. In fact, there have been numerous cases where individuals have totally given up smoking. It is precisely this line of approach that has made major cigarette manufacturers to print health warning instructions on all their respective packs of cigarettes. Furthermore, majority of the cigarette manufacturing companies around the world, including those of the United Kingdom comply with requisite regulations and legislations with respect of marketing, advertisement and sales of cigarettes. There are also companies, which have their own pack labelling policies, which go beyond the requisite legislation of the respective host country. It is perhaps this lapse, if one may wish to call it, which has allowed majority of cigarette manufacturing companies to guise their marketing, promotion, advertising and selling policies into a philosophy which acknowledges the right of the adult populations to smoke, and consequently respect and protect that particular right. (Pierce et al, 1998; Biener and Siegel, 2000; Saffer and Chaloupka, 1999; Anderson et al, 2002; Slade, 2001; Lewis and Littler, 1999)

In pursuance of the rights of the smokers, cigarette manufacturing companies also stand against any excessive price regulations and tax measures which are presumably aimed at reducing demand for cigarettes. An independent view of a number of tax and price measures levied by various countries including the United Kingdom reveal that the smoking populations are unduly punished for the pleasure of smoking, and governments largely fail to take into account the huge sums generated from revenues on the various taxes levied on cigarettes. These high rates of taxes levied on cigarettes then results in the illegal and often illicit trade of smuggling cigarettes in turn undermining the legitimate market for cigarette companies running and operating under legal channels of business.

A brief on the United Kingdom's cigarette industry reveals that 1 in every 5 cigarettes is smuggled into the country, which adds to a huge 20 percent of the entire cigarette industry of United Kingdom.

In similar context is the call for a ban on the sale of duty free cigarettes, as the primary objective behind the promotion of duty free sale of cigarettes, or for that matter any other product is reduction in illicit trade of that particular item. A ban on the duty free sale of cigarettes would practically jeopardize the 'regulated duty free retail' of that product, and at the same time have a minimal affect on the sale of cigarettes. On the contrary a ban on the duty free sale of cigarettes would simply bring about a shift in the market of cigarettes from a duty free environment to one that is largely controlled by domestic market.

Another related aspect of the cigarette vending industry is that of various standards and policies which are aimed at raising awareness about the potential health risks associated with smoking. Trade zones such as those found in European Union for example are ample grounds for such standards and policies to be levied, which in turn allow for uniform results as well as derive common interests amongst the respective countries.

The non-smoking segment of the populations is yet another vital area of focus for cigarette manufacturing companies. As also a public health issue, the non-smokers are prone to, and thus demand protective measures from passive smoking. In this respect, there exist two schools of thought; one that disregards any findings and conclusions, which present cigarette smoke as a potential health hazard for non-smokers. This group though acknowledges that cigarette smoke is indeed a source of annoyance as well as one of the causes of environmental pollution. Yet, they also call for an approach based on

simple logic and common sense and co-operation. While the second school of thought, such as M/s Gallaher, one of the major cigarette manufacturing and marketing companies in the UK, contend that government initiatives including the "Air Quality' program are viable and productive programs to address vital public smoking issues.

Literature Reviews

There have a number of writings and case studies, which prove the effectiveness of direct mail on the cigarette vending industry,. These writings and studies have convincingly proven that direct mail has had a positive affect and its influences have directly contributed to the rise in cigarette sales, in turn promoting the cigarette vending industry in general. Thus, it would not be wrong to state, as also proven from the following case studies, that the direct mail strategy in the cigarette vending industry has proven to affect smoking initiation as well as consumption. A brief historical perspective also reveals that cigarette manufacturing companies the world over have significantly changed their focus from the traditional advertising to the use of techniques which emphasize on developing as well as maintaining a relationship with individual customers. Direct mail through direct communication thus offers cigarette-vending industry a source of generating sales including obtaining measurable response in related areas of marketing. (Pierce et al, 1998; Biener and Siegel, 2000; Saffer and Chaloupka, 1999; Anderson et al, 2002; Slade, 2001; Lewis and Littler, 1999)

One of the most effective techniques, and perhaps one of the oldest as well, is that of utilizing mailing list of individuals maintained by major and minor cigarette vending companies alike. It is this list of individuals or customers, which serves as the potential for direct mail for cigarette vending industry. This list is also used for the distribution of coupons, sweepstakes offers, and brand-loyalty programme catalogues. Also included in the items distributed through direct mail are event announcements sponsored by the cigarette vending industry, and magazines published by major tobacco manufacturing companies. Practically all these items which are sent to individuals using the direct mail system contain activities and feature images which serve a two-fold purpose. First, these promotional items are designed in such a manner to make emotional appeals to customers. Second, they serve to strengthen, rather reinforce the existing images of the various brands of cigarettes in the market. There are different modes of collecting such list of individuals, which includes events that are sponsored by the cigarette industry, sweepstake forms, signed coupons as well as brand-loyalty program orders. These listings more often than not include some form of a response mechanism, which invites recipients to fill out surveys for example, or mention their lifestyle preferences.

A statistic covering the US cigarette industry with particular reference to the role of direct mail reveals that there has been a general rising trend in the use of direct mail in the United States. A brief on the 6 largest US cigarette manufacturers showed that they collectively spend a staggering amount of US 133.9 million dollars on direct mail in 2001. This was an increase of 131.8 percent from the figures of 1998. One may note that these huge figures do not include sums spent on coupons or specialty items distributed through the mail system. (USFTC, 2002)

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