Tobacco giants to cut sponsorships
<p>Multinational tobacco companies are hammering out a voluntary pact, </p><p>which could lead to a dramatic shift in their global marketing </p><p>communications strategy and pull the plug on billions in sponsorship </p><p>dollars. </p><p><BR><BR> </p><p>Tobacco giants such as Philip Morris and British American Tobacco (BAT) </p><p>are said to be in talks to end all forms of mass market communications, </p><p>including sports sponsorships and POS campaigns, industry sources </p><p>said. </p><p><BR><BR> </p><p>The bid to become more socially responsible could result in a drastic </p><p>reduction in their adspend, impacting lead tobacco agencies such as Grey </p><p>Worldwide and Bates, which work on BAT, and Leo Burnett on Philip </p><p>Morris. </p><p><BR><BR> </p><p>Sources said cigarette manufacturers expect to have an "industry-wide </p><p>self-censorship" agreement in place by September, after which their </p><p>marketing focus would switch to customer relationship and </p><p>permission-based marketing activities. </p><p><BR><BR> </p><p>These could include the organisation of smokers-only events for the sole </p><p>purpose of enticing consumers to change brands. It is understood that </p><p>the aim of the new strategy is to help the industry become more socially </p><p>responsible at a time when it faces several class action lawsuits and is </p><p>liable for billions of dollars in compensation claims. Said a source: </p><p>"These lawsuits are occurring in the west but we could see these </p><p>happening in Asia soon." </p><p><BR><BR> </p><p>Sources said all the major multinational tobacco companies are involved </p><p>in the talks. The fear is if one player acts irresponsibly, the entire </p><p>industry would be tarred with the same brush. "This means that their </p><p>argument that they are helping to advance the cause of sports through </p><p>sports sponsorships, for example, isn't cutting it any more," said a </p><p>source. "Given all the allegations against them about targeting youths, </p><p>the third world and so on, they have to be seen not be increasing their </p><p>overall market share." </p><p><BR><BR> </p>
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