Abstract
This document (from Philip Morris' files) shows how the global tobacco industry fights efforts to restrict the advertising of tobacco products. The report was produced by Infotab (the international information clearinghouse and monitoring organization formed by the major multinational tobacco companies around the late 1970s-early 1980s to help confront the global anti-tobacco movement). The report discusses the weakness and lack of credibility of the global tobacco industry's main argument against advertising bans, namely the claim that cigarette advertising doesn't increase total market size, but just causes existing smokers to switch brands.
The document shows that this argument directly contradicts the truth. The reality, according to this report, is that the total cigarette market grows in developing countries in accordance with the amount of money the tobacco companies spend to advertise their products in those countries.
The author of the report, listed as Ron Tully (who served as Documentation Manager of Information Services at Infotab in 1989) grapples with how the industry can persist with such an incredible argument when the facts don't support their case:
"The general argumentation used by the industry is beginning to look extremely weak and the presentation of these arguments to the 'public' and 'opinion formers' needs to be examined in detail.
This is best illustrated in the advertising bans and consumption argument, where the industry argues that 'advertising does not increase total market size', yet we are presented with a dilemma in developing markets where the total market is growing and advertising expenditure is rising accordingly. How can we reconcile this?"
Tully urges the industry to "consider new arguments." He laments the tobacco industry's lack of credibility, comparing it to the respect and authority enjoyed by the World Health Organization:
"The anti-smoking lobby continue to coordinate their data on smoking through the WHO, providing respectability and authority which industry data is unable to match."
He points out that the tobacco industry does not have the credibility to put forth new arguments against advertising bans in a believable manner, and recommends instead that any new data the industry accumulates in support of a new argument be put forth by "a respected independent international organization" which "should be used to publish the results."
To help stave off advertising bans, Tully suggests that the industry invest in "a high dollar spend, over a sustained period of time to innovative campaigns aimed at an ill-informed public," saying the industry must "[meet] the challenge of anti smoking campaigns with 'real money', which means matching the anti-smoking groups dollar for dollar..."
In his conclusion, Tully frames health authorities and tobacco control policies essentially as competitors to the tobacco industry, warning
"Just remember, we lose more to the bottom line each year in markets as a direct result of policies pushed by the anti-smoking fraternity. Can we afford to let these groups continue their propaganda unabated??"
Fields
- Quotes
Regional Workshop
ADVERTISING - INTERNATIONAL, COORDINATION
Argumentation:
The general argumentation used by the industry is beginning to look extremely weak and the presentation of these arguments to the "public" and "opinion formers" needs to be examined in detail.
This is best illustrated in the advertising bans and consumption argument, where the industry argues that 'advertising does not increase total market size', yet we are presented with a dilemma in developing markets where the total market is growing and advertising expenditure is rising accordingly. How can we reconcile this?
Should the industry undertake some new studies on a global basis and consider new arguments, e.g. the effects on the national economy of advertising bans taking into consideration not only damage to the tobacco sector, but also. to government revenues, consumer spending, the advertising industry and other media related sectors. Such
studies would have to be centrally planned and administered.
Statistics:
In order to assist the arguments we put forward to our governments, it is essential definitive data is available on smoking populations, total tobacco consumption, and per capita consumption. The anti-smoking lobby continue to coordinate their data on smoking through the WHO, providing respectability and authority which industry data is unable to match.
The collection of industry statistics needs to be coordinated by Infotab, which through its existing network, is best placed to acquire and collate such data. However, to achieve 'authority' for industry data a respected
independent international organization should be used to publish the results....
...To argue our position, in society we must prepare and publish a body of knowledge which we can call upon in future argumentation...
...There is a major trend emerging around the globe for the establishment of Health Promotion Funds, which are used to directly fund anti-tobacco advertising and sponsorship. It is essential the industry meets the challenge of anti smoking campaigns with 'real money', which means matching the anti-smoking groups dollar for dollar, to inform the
public through aggressive long term campaigns.
We need to apply the same degree of creativity in pressing the facts on the advertising issue that we apply in brand marketing. This does not mean a series of short national campaigns, but a high dollar spend, over a sustained period of time to innovative campaigns aimed at an ill-informed public. We must frame the issue in our terms...
...Just remember, we lose more to the bottom line each year in markets as a direct result of policies pushed by the anti-smoking fraternity. Can we afford to let these groups continue their propaganda unabated??
- Company
- Philip Morris
- Author
- Tully, Ronald (Infotab Documentation Manager)
1989 UK
- Recipient
- Presumed Philip Morris and other worldwide tobacco companies on whose behalf Infotab was created.
RegionEurope
United States
LitigationStmn/Produced
Operation/ProjectFighting advertising bans - argumentation
Named OrganizationEEC, European Economic Community
European Advertising Tripartite
Freedom to Advertise Coalition
Health Promotion Fund
IAA
ICC
International Tobacco Information Inc. (INFOTAB) (Int'l Tobacco Information Clearinghouse for industry, NMAs)ICOSI (International Commission on Smoking Issues) was formed around 1978. It was reorganized in 1980 or 1981 as INFOTAB. Infotab is an information clearinghouse that collects articles and legislatlve information. Data Is funnelled to Infotab by members of the industry. The founding companies are R.J. Reynolds International, BAT, Philip Morris, Reemtsma, Rothmans, Imperial andGallaher. The last three companies dropped in and out. A company had to give three years' notice to resign. BAT gave its notice to resign in late 1987 in conjunction with B&W's resignation from TI. BAT and B&W's resignations were partially because of the Barclay controversy. The companies pay the Infotab dues, but the beneficiaries include the national manufacturing associations(NMAs) . NMAs worldwide receive newsletters from Infotab. They can call and get information on various topics. G.C. Hargrove of BAT was on Infotab.
Intl Journal of Advertising
Libertad (3rd party mouthpiece for PM)Used to support freedom of commercial speech. Group that shares ideas with Philip Morris (e.g., freedom from government regulation) that Philip Morris supported as a third party ally to help push their agenda.
Tobacco Institute (Industry Trade Association)The purpose of the Institute was to defeat legislation unfavorable to the industry, put a positive spin on the tobacco industry, bolster the industry's credibility with legislators and the public, and help maintain the controversy over "the primary issue" (the health issue).
WFA
World Health Organization (Concerned with global public health)International organization concered with public health worldwide
Advertising Assn
TypeREPT, REPORT, OTHER
Subjectadvertising
advertising industry
advertising restriction
Corporate strategy
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Regional Workshop
ADVERTISING - INTERNATIONAL COORDINATION
Argumentation:
The general argumentation used by the industry is beginning to look
extremely weak and the presentation of these arguments to the
"public" and "opinion formers" needs to be examined in detail.
This is best illustrated in the advertising bans and consumption
argument, where the industry argues that 'advertising does not
increase total market size', yet we are presented with a dilemma
in developing markets where the total market is growing and
advertising expenditure is rising accordingly. How can we reconcile
this?
Should the industry undertake some new studies on a global basis
and consider new arguments, e.g. the effects on the national economy
of advertising bans taking into consideration not only damage to the
tobacco sector, but also to government revenues, consumer spending,
the advertising industry and other media related sectors. Such
studies would have to be centrally planned and administered.
Statistics:
In order to assist the arguments we put forward to our governments,
it is essential definitive data is available on smoking populations,
total tobacco consumption, and per capita consumption. The anti-smoking
lobby continue to coordinate their data on smoking through the WHO,
providing respectability and authority which industry data is unable to
match.
The collection of industry statistics needs to be coordinated by Infotab,
which through its existing network, is best placed to acquire and collate
such data. However, to achieve 'authority' for industry data a respected
independent international organization should be used to publish the
results.
Networking opinion formers:
There is a lack of coordination in addressing responses to anti-
industry literature on this issue. The industry needs to extend its
existing network of respected academics, politicians and influential
laymen, who are prepared to redress the imbalances presented. This
work could be focused through a variety of publications, media
campaigns and direct attacks on anti-industry campaigners.
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I*
There are a number of academic journals which would be prepared to accept
well presented and well formulated arguments by eminent individuals, e.g.
the Advertising Association in the UK has been particularly active in
publishing industry material in the journal 'The International Journal
of Advertising'.
To argue our position in society we must prepare and publish a body of
knowledge which we can call upon in future argumentation. The haphazard
approach taken by the industry at the moment is to generate uncoordinated
responses to threats in specific markets. Although this addresses the
problem for one market, it does not allow for dissemination of the
results of expensive industry sponsored research on an international
basis.
Networking Organizations with related interests:
Excellent work has been,done by a number of manufacturers and NMAs
in the fostering of coalitions on a broad advertising platform. In
the USA for example, the TI is closely involved in the work of the
'Freedom to Advertise Coalition', which is a conglomerate of the
major advertising trade associations in the US.
In Europe the formation of the European Advertising Tripartite has
provided a forum for debating and coordinating action against the
proposed restrictive legislation emanating from the EEC. This broad
based membership organization is able to consider the issue of tobacco
advertising on the widest possible commercial platform.
In the USA the formation of 'LIBERTAD' (a diverse international
coalition of business, academic and media leaders) represents a
major step forward in presenting the issue of advertising
freedom to the general public. The Libertad philosophy needs to be
applied in as many countries around the world where tobacco is
marketed, and efforts must be made to encourage manufacturers
of all products to realise the dangers of permitting governments
to introduce restrictive advertising legislation in a single sector.
The IAA, WFA have taken a leading, role in presenting submissions to
the Minister responsible for the introduction of restrictions on
tobacco. Although: it is not known if Ministers take note of such
representation, it is clear national governments are made aware that
the international community is taking note of operating restrictions
placed on international business in their country. This work by the
IAA and WFA is to be commended but could be greatly enhanced if the
industry were to encourage other legitimate trade groups to make
similar representation at both a national and international level.
Relationships inside major international organizations must be
fostered. Any organization whichis in a position to make
representation to governments, should have industry members
on its policy making bodies, e.g. the ICC has membership from many
industries on its board, but is very poorly represented by tobacco
concerns. Ther'e is significant scope for our industry to assist in
policy formulation within groups such as the ICC if we can achieve t3
good representation. It is in our interest to force the hand of any ~'
organization which has access to~the ear of opinion formers. ~
The Anti's have recognised the value of coalition building, particularly ~
from their successes in the introduction of legislation in Canada. We ~
W
~
~
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must tackle these coalitions with existing networks and allies. It is a
mistake to form an industry counter group as a reaction to proposed
restrictions, as the single platform issue is the most difficult to
defend. As an industry we must be pre-emptive by developing and fostering
coalitions with long established and well respected trade, political
and freedom associations.
Any form of coalition building is justifiable provided it is targetedd
at broad based organizations with broad policy objectives.
Public opinion:
We need to frame the advertising issue at a very basic level and
present the case to the public. The way to influence opinion formers
is to take your case to the public and obtain their participation
in the fight against advertising restrictions.
There is a major trend emerging around the globe for the establishment
of Health Promotion Funds, which are used to directly fund anti-tobacco
advertising and sponsorship. It is essential the industry meets the
challenge of anti smoking campaigns with ~real money', which means
matching the anti-smoking groups dollar for dollar, to inform the
public through aggressive long term campaigns.
We need to apply the same degree of creativity in pressing the facts
on the advertising issue that we apply in brand marketing. This does
not mean a series of short national campaigns, but a high dollar
spend, over a sustained period of time to innovative campaigns
aimed at an ill-informed public. We must frame the issue in our
terms.
* The NMAs are best placed to initiate such campaign
work and their resources should be increased to
manage such high profile campaigns.
Just remember, we lose more to the bottom 1!ine each year in
markets as a direct result of policies pushed by the anti-smokingg
fraternity. Can we afford to let these groups continue their
propaganda unabated.??
SUI+fMARY :
* initiate an academic publishing programme on the advertising
issue.
* develop and foster coalitions with trade groups and freedom
associations in anticipation of anti-tobacco activity
* prepare voluntary agreements to forestall direct government
legislation.
* avoid accusations of marketing to children by taking a
responsible approach to advertising.
* initiate a witness programme to provide a pool of experts
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-r
who can be called upon to testify and publish on this issue.
* present the issue on the broadest possible commercial and
constitutional front.
* encourage trade associations to adopt freedom position through
attaining direct representation on their policy making
committees
* establi,sh a definitive databank of information on total
consumption, per capita consumption and patterns of smoker
populations
* start planning for long term campaigns to the general public on
broad commercial and personal freedom issues.
* identify the key members of government most likely to be involved
in anti-tobacco legislation and establish appropriate lobbying
channels.
* prepare documents in support of the industry position concentrating
on the economic and social role of advertising as well as the
commercial freedom issue.
Ron Tully
INFOTAB 11.10.89
