Sponsored by the California Department of Health Services, Tobacco Control Section Presented by...

Sponsored by the California Department of Health Services, Tobacco Control SectionSponsored by the California Department of Health Services, Tobacco Control Section

Presented by Christine FenlonCMA Foundation

April 30, 2002

IN THE BREAK ROOM: WHAT RETAILERS HAVE TO SAY

IN THE BREAK ROOM: WHAT RETAILERS HAVE TO SAY

Methodology and Key Findings FromMethodology and Key Findings From

Tobacco Retailer Focus GroupsTobacco Retailer Focus Groups


“Advertising and Promotions” Focus Groups coordinated by

Ellen Feighery, Public Health Institute

“Youth Access” Focus Groups coordinated by

Christine Fenlon, CMA Foundation

Retailer Focus Groups conducted by

Cooper Roberts Research, Inc.

September - November 2001


GENERAL PURPOSE of the FOCUS GROUPS

In the Break Room: What Retailers SayIn the Break Room: What Retailers Say

• Learn about tobacco advertising and sales in the retail environment

• Discover retailers’ willingness to modify their store policies and practices


• Marketing of tobacco products in stores

PURPOSE of ADVERTISING & PROMOTIONS

• The mechanisms tobacco companies use to provide retailers with financial incentives to increase sales

• Their perspectives on changing or reducing advertising in their stores




• Problems retailers face with regard to illegal sales to minors and recommendations to prevent youth access

PURPOSE of ILLEGAL SALES TO MINORS

• Tobacco sales training provided for clerks

• Their reaction to health messages and tobacco licensing fees


• Eleven mini-focus groups were conducted among California retailers and clerks

METHODOLOGY: GENERAL


• The sponsor of the research was not identified

• Each group was approximately two hours long

• On average, the groups were comprised of six retailers


• Eight groups of owners and/or managers from independent or independent-franchise stores

METHODOLOGY: GROUPS RECRUITED


• Two groups among English-speaking respondents of Chinese descent

• Six groups without any ethnic background requirements



METHODOLOGY: GROUPS RECRUITED

• Two groups of clerks from chain and independent stores

• Rural and urban retailers

• One group of store mangers from retail supermarket or grocery supply chains


The few differences in attitudes noted in the

focus groups were driven primarily by the

type of store (independent vs. franchise vs.

chain) and the volume of tobacco sales

rather than from the various geographic

locations and ethnic backgrounds involved

in the study.

DIFFERENCES IN RESPONSES



• Retailers acknowledge that in-store advertising increases sales of products being advertised whether for soda, chips or cigarettes

• Advertising closest to the front counter has the biggest impact on sales

• Advertising that highlights a reduced price is the most effective

Advertising/Promotions Focus Group FindingsAdvertising/Promotions Focus Group Findings

IN-STORE ADVERTISING AND PROMOTIONS


• Price reductions (sales) and multi-pack

discounts, are the most prevalent and effective

promotions offered for cigarettes

• Sales on packs or cartons of cigarettes are

frequently due to a “buy down” for which the

retailer is reimbursed the amount of the discount

per pack after the sale ends

TOBACCO PROMOTIONS



• The tobacco company with the highest bid will win the right to display their products in the “first” or most visible position— usually on the top or “eye level” shelf

• In several independent stores, the tobacco products themselves have become the primary advertising for the brand. These include counter-top displays of cigarettes in plexi-glass

PRODUCT ADVERTISING AND PLACEMENT



• The all-encompassing contract attempts to control as much of the store space and as many promotions as it can

• Less-involved contracts usually include the “buy two packs and get one free” displays

• The tobacco company usually provides displays and signs to post for items on sale or promotion. The retailer is paid for using the display(s), which is often referred to as the “monthly payment”

CONTRACTS



• While retailers want to be responsive to their community, they are going to ensure that requested changes will not hurt their business or offend other customers • Retailers are reluctant to remove any item, including displays or advertising, which are part of a contract

• Tobacco is often called a “loss leader,” because a customer coming in to buy tobacco may also purchase bread, chips and soda

COUNTER DISPLAYS AND ADVERTISING



• Out-of-state licenses, passports and military identifications (IDs) are the biggest concern for most retailers

• Most retailers have experienced verbal abuse because they asked for ID or refused to sell tobacco to suspected minors

• Underage customers often ask adults to purchase tobacco for them, putting the retailer in an awkward position

PROBLEMS FACED BY RETAILERS

Youth Access Focus Group FindingsYouth Access Focus Group Findings


• Clerk training for tobacco sales varies from informal verbal instructions at independent stores to being a component of a more formal three to five day overall training for cashiers at chain stores

• Most clerks receive some sort of paper or electronic calendar to aid them in determining the correct birth date for legal tobacco sales

CLERK TRAINING



• Typically, retailers go over the rules about checking ID for tobacco sales and explain the consequences for the clerk if an illegal sale is made — many clerks are required to sign a paper indicating they understand the penalty if they make an illegal sale

• Many chains incorporate instructional videos into their tobacco-training programs. Some mentioned using the “We Card” video

CLERK TRAINING



• Some retailers believe that the most important message to convey to a clerks is: that they will be fined and/or fired for selling tobacco to minors

• Most clerks say that rotating various messages in the break room to remind them to check for ID would be effective

• The majority of stores use cash register scanners that prompt a clerk to ask for ID or require that a birth date be entered

RETAILER RECOMMENDATIONS



• Most retailers and clerks believe that posting heath-related signage inside stores will not deter minors from buying tobacco products • Retailers say that it is not their responsibility to educate customers about the dangers of smoking, nor is their store the appropriate place to do so

• Retailers worry that the health messages may offend their adult smoking customers

REACTION TO HEALTH MESSAGES



• Most chain managers say that a tobacco license would reduce the sale of tobacco to minors and view it as simply another cost associated with doing business.

• Initially, many independent storeowners were opposed to a licensing fee. However, once a figure of $100 to $200 was mentioned they admitted that licensing could be an effective tool in preventing illegal tobacco sales to minors.

TOBACCO LICENSURE



• Both chains and independents store owners agreed that they would support a “flat fee” over one based on “sales volume.” They don’t want a licensing fee that would be calculated on the total number of cigarettes sold in their store.

TOBACCO LICENSURE



For more details about what California

retailers had to say or information

about conducting local retailer focus

groups, log on to the STORE web site

at: www.tecc.org/store.


Sponsored by the California Department of Health Services, Tobacco Control Section Presented by...

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