If you think the new UK advertising laws are draconian, try visiting Canada. There as in Australia, tobacco manufacturers are even more limited than in the EU. In fact, in one Canadian state, retailers have to store packs in an unbranded cupboard behind the counter so as not to influence shoppers.
The major brand owners have been looking seriously at the role of the store on a global basis for the past three years as a result of situations like this. In the UK, the advertising ban is sufficiently vague as to make tobacco manufacturers and point of sale designers tread carefully.
"The situation is not particularly clear and there is still a lot of development work on what can and can't be done," says Mark Ransom, marketing director of Antone which works with one of the big players.
The main opportunity left in store is the gantry and recently tobacco companies have increased investment here, both in anticipation of the ban and as a result of the growing acknowledgement that POP advertising is a key driver influencing sales.
"It is the most brand loyal category of all, so POP is not the typical call to action but about establishing long-term awareness," says Siemon Scamell-Katz, chairman of shopper research company ID Magasin.
Technology is expected to play a greater role, particularly if the ban is extended. If brand names and icons on the gantry were to be banned, pack colour and shape would be key. Coloured lighting and visual effects communicating the shape and colour associated with a brand are likely to appear.
Scamell-Katz says marketers need to take a channel perspective. "Tobacco companies have done very little except put a brand name on the fixture in the past," he says. "In most channels you do not get any brand value communication as shoppers are not in the right mode. It will be about picking the right channel."
Tobacco companies are putting more money behind research to understand how shoppers make a selection. One problem is that staff serving at the counter present a physical barrier between the customer and tobacco fixture. Work is being undertaken to find ways around this.
Another avenue being explored is the sponsorship of shopfitting projects within traditional tobacconists. Marketers will now be able to justify a disproportionate investment in specialist outlets like this.
Vending machines present another opportunity and are likely to become a more important site for promotional activity.
Because companies are still unsure how legislation will be interpreted and whether it will extend to the store at a later date, there is concern about being too specific about plans. For the moment, though, there are opportunities to divert funds into store display and marketers are likely to be able to justify spend they couldn't previously.
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The major brand owners have been looking seriously at the role of the store on a global basis for the past three years as a result of situations like this. In the UK, the advertising ban is sufficiently vague as to make tobacco manufacturers and point of sale designers tread carefully.
"The situation is not particularly clear and there is still a lot of development work on what can and can't be done," says Mark Ransom, marketing director of Antone which works with one of the big players.
The main opportunity left in store is the gantry and recently tobacco companies have increased investment here, both in anticipation of the ban and as a result of the growing acknowledgement that POP advertising is a key driver influencing sales.
"It is the most brand loyal category of all, so POP is not the typical call to action but about establishing long-term awareness," says Siemon Scamell-Katz, chairman of shopper research company ID Magasin.
Technology is expected to play a greater role, particularly if the ban is extended. If brand names and icons on the gantry were to be banned, pack colour and shape would be key. Coloured lighting and visual effects communicating the shape and colour associated with a brand are likely to appear.
Scamell-Katz says marketers need to take a channel perspective. "Tobacco companies have done very little except put a brand name on the fixture in the past," he says. "In most channels you do not get any brand value communication as shoppers are not in the right mode. It will be about picking the right channel."
Tobacco companies are putting more money behind research to understand how shoppers make a selection. One problem is that staff serving at the counter present a physical barrier between the customer and tobacco fixture. Work is being undertaken to find ways around this.
Another avenue being explored is the sponsorship of shopfitting projects within traditional tobacconists. Marketers will now be able to justify a disproportionate investment in specialist outlets like this.
Vending machines present another opportunity and are likely to become a more important site for promotional activity.
Because companies are still unsure how legislation will be interpreted and whether it will extend to the store at a later date, there is concern about being too specific about plans. For the moment, though, there are opportunities to divert funds into store display and marketers are likely to be able to justify spend they couldn't previously.
{{ANALYSIS }}
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