Published in 2022

Many forms of tobacco advertising and promotion are prohibited, including advertisements on domestic TV, radio, print media, billboards, point of sale advertising and product display, direct targeting of individuals, and retailer incentive programs. Most other forms of advertising and promotion are allowed. There are some restrictions on tobacco sponsorship and the publicity of such sponsorship.

The Ministry of Health has issued one warning message which contains both a picture and text that must be placed on all cigarette packs. The warning must occupy 60 percent of the pack and be placed on the front top of the pack in Urdu and on the back top of the pack in English. However, health warnings graphics are not required on smokeless tobacco products.

https://www.tobaccocontrollaws.org/legislation/pakistan/summary

How are companies communicating with these restrictions?

We have seen over the last decade that promotional activities of traditional cigarettes have been limited due to legal restrictions. With little room, tobacco companies have to be very effective with the campaign that they can run.

We have also  seen in more recent times that campaigns are mostly run via pack inserts i.e., a small ticket inside the pack which can be seen once the pack is opened. In addition to pack inserts, companies are now launching different LEPs (Limited Edition Packs) to keep smokers engaged. While from the price point, we can still see price boards at the shop telling smokers prices of the pack.

However, for the smokeless tobacco/ nicotine products there is still a grey area which has allowed the industry to run different campaigns. One example from Pakistan’s market is the Velo Sound Station.

Advertisements in FMC (Fine Manufactured Cigarettes) Category

Published in 2022

Many forms of tobacco advertising and promotion are prohibited, including advertisements on domestic TV, radio, print media, billboards, point of sale advertising and product display, direct targeting of individuals, and retailer incentive programs. Most other forms of advertising and promotion are allowed. There are some restrictions on tobacco sponsorship and the publicity of such sponsorship.

The Ministry of Health has issued one warning message which contains both a picture and text that must be placed on all cigarette packs. The warning must occupy 60 percent of the pack and be placed on the front top of the pack in Urdu and on the back top of the pack in English. However, health warnings graphics are not required on smokeless tobacco products.

https://www.tobaccocontrollaws.org/legislation/pakistan/summary

How are companies communicating with these restrictions?

We have seen over the last decade that promotional activities of traditional cigarettes have been limited due to legal restrictions. With little room, tobacco companies have to be very effective with the campaign that they can run.

We have also  seen in more recent times that campaigns are mostly run via pack inserts i.e., a small ticket inside the pack which can be seen once the pack is opened. In addition to pack inserts, companies are now launching different LEPs (Limited Edition Packs) to keep smokers engaged. While from the price point, we can still see price boards at the shop telling smokers prices of the pack.

However, for the smokeless tobacco/ nicotine products there is still a grey area which has allowed the industry to run different campaigns. One example from Pakistan’s market is the Velo Sound Station.

Effectiveness of available communication options

Pack inserts are usually low cost and effective because of being highly targeted in nature helping brands increase their Loyalty. A Harvard Business Review says that a 5% increase in customer retention could lead to an up to 95% profit increase. It is therefore vital that sellers take advantage of all the tools that they have at their disposal to retain customers.

Pack inserts are also very effective in generating awareness about a change or new product to be launched.

https://www.retain.me/blog/the-ultimate-guide-to-packaging-inserts

Limited-edition cans create a sense of exclusivity and prestige, which drives sales. Limited-edition designs add extra value to products because they become collector’s items (especially when they have a unique design). Special edition packaging can solidify a long-term connection with your customers. Limited-edition packaging brings excitement to an old product and keeps users engaged.

Limited edition pack design provides brand managers with the options of relating the brand to some triggers that might be of interest to target audience and hence can improve equity. For instance, Heinz used a can design from 60 years ago for a link with Fortnum & Mason, where its beans were first sold. It drove huge PR value and brand equity

 https://theuniquegroup.com/why-limited-edition-packaging-works/

Effectiveness of available communication options

Pack inserts are usually low cost and effective because of being highly targeted in nature helping brands increase their Loyalty. A Harvard Business Review says that a 5% increase in customer retention could lead to an up to 95% profit increase. It is therefore vital that sellers take advantage of all the tools that they have at their disposal to retain customers.

Pack inserts are also very effective in generating awareness about a change or new product to be launched.

https://www.retain.me/blog/the-ultimate-guide-to-packaging-inserts

Limited-edition cans create a sense of exclusivity and prestige, which drives sales. Limited-edition designs add extra value to products because they become collector’s items (especially when they have a unique design). Special edition packaging can solidify a long-term connection with your customers. Limited-edition packaging brings excitement to an old product and keeps users engaged.

Limited edition pack design provides brand managers with the options of relating the brand to some triggers that might be of interest to target audience and hence can improve equity. For instance, Heinz used a can design from 60 years ago for a link with Fortnum & Mason, where its beans were first sold. It drove huge PR value and brand equity

 https://theuniquegroup.com/why-limited-edition-packaging-works/

Sohaib Ejaz
General Manager – Insights
Published in Sept 2022

The “tobacco scare” or the rising fear around tobacco products is associated with two prime factors. The first being our ever-changing lifestyles; the second being the more obvious reason, the risks to health associated with consuming tobacco products. Furthermore, legal restrictions on promotions and activations of the product combined with autocratic pricing by the respective Governments are a barrier to sales. Price has always been a deciding factor for consumers. Increases in prices have shown an inverse relation with sales and hence the declining number of product users.

The first step in revolutionizing the industry

The growing concern around and awareness of the adverse health effects of using tobacco products in both consumers and society, while tending to the declining popularity was a dilemma that could have most easily taken the industry backward. Yet, their “around-the-problem” approach led them to question, “an we give alternate choices to smokers for potentially reduced-risk products?”. This approach has been the cornerstone of the tobacco industry’s evolution in this past decade. With the introduction of alternatives such as Vapes, Tobacco Heating Products and Modern Oral Products, the tobacco industry changed the game of tobacco consumption via innovation.

What if the last smoker quits?

Sohaib Ejaz
General Manager – Insights
Published in Sept 2022

The “tobacco scare” or the rising fear around tobacco products is associated with two prime factors. The first being our ever-changing lifestyles; the second being the more obvious reason, the risks to health associated with consuming tobacco products. Furthermore, legal restrictions on promotions and activations of the product combined with autocratic pricing by the respective Governments are a barrier to sales. Price has always been a deciding factor for consumers. Increases in prices have shown an inverse relation with sales and hence the declining number of product users.

The first step in revolutionizing the industry

The growing concern around and awareness of the adverse health effects of using tobacco products in both consumers and society, while tending to the declining popularity was a dilemma that could have most easily taken the industry backward. Yet, their “around-the-problem” approach led them to question, “an we give alternate choices to smokers for potentially reduced-risk products?”. This approach has been the cornerstone of the tobacco industry’s evolution in this past decade. With the introduction of alternatives such as Vapes, Tobacco Heating Products and Modern Oral Products, the tobacco industry changed the game of tobacco consumption via innovation.

How is it faring?

Tobacco companies that focus on the NGPs (Next Generation Products) have so far come up with broadly three types of products:

1. E-cigarettes use batteries and liquid (nicotine / non-nicotine) with different types in the market, the latest include the pods feature. Liquid pods are commonly available at many stores and are easily replaceable by consumers. Juul is an example of such technology.
2. A tobacco heating product (THP) is a device that heats the stick and allows users to take the nicotine without actually burning the cigarette. PMI is the dominant market holder with their “IQOS”.
3. NGPs, the more popular Modern Oral category product, are small nicotine pouches, placed between gum and teeth (NOT to be Chewed). In Pakistan, we may associate this with the name “Velo”

E-cigarettes and THPs have been in the global market for some time now, with noticeable penetration in developed countries such as Japan and the USA. Developing countries are not far behind, as consumers opt for imported products. Modern Oral is still new to many markets, but companies that delicately focus on reducing dependence on traditional FMC while offering potentially reduced risks are bracing for success.

In Pakistan, one of the reasons why Modern Oral has been able to gather such an audience is credit to the consistency showcased by the brands in making it a success based on data-driven decisions. Data generated from different consumer surveys has helped the brand to alter the product by seeing the needs of consumers. Be it pricing, packaging or the product experience by early adopters, the data received from consumer surveys has significantly contributed to improving and expanding the foothold in this new category. However, the landscape of tobacco industry is changing at a super-fast rate, and if you need to know more about the latest trends in tobacco industry, feel free to speak with us and reach out to us at info.pakistan@1oula.com

How is it faring?

Tobacco companies that focus on the NGPs (Next Generation Products) have so far come up with broadly three types of products:

1. E-cigarettes use batteries and liquid (nicotine / non-nicotine) with different types in the market, the latest include the pods feature. Liquid pods are commonly available at many stores and are easily replaceable by consumers. Juul is an example of such technology.
2. A tobacco heating product (THP) is a device that heats the stick and allows users to take the nicotine without actually burning the cigarette. PMI is the dominant market holder with their “IQOS”.
3. NGPs, the more popular Modern Oral category product, are small nicotine pouches, placed between gum and teeth (NOT to be Chewed). In Pakistan, we may associate this with the name “Velo”

E-cigarettes and THPs have been in the global market for some time now, with noticeable penetration in developed countries such as Japan and the USA. Developing countries are not far behind, as consumers opt for imported products. Modern Oral is still new to many markets, but companies that delicately focus on reducing dependence on traditional FMC while offering potentially reduced risks are bracing for success.

In Pakistan, one of the reasons why Modern Oral has been able to gather such an audience is credit to the consistency showcased by the brands in making it a success based on data-driven decisions. Data generated from different consumer surveys has helped the brand to alter the product by seeing the needs of consumers. Be it pricing, packaging or the product experience by early adopters, the data received from consumer surveys has significantly contributed to improving and expanding the foothold in this new category. However, the landscape of tobacco industry is changing at a super-fast rate, and if you need to know more about the latest trends in tobacco industry, feel free to speak with us and reach out to us at info.pakistan@1oula.com