Kevin Mayhew
2 June 2003
Johannesburg — MANY companies will be forced by consumer pressure and litigation threats to adopt new marketing strategies to survive.
British American Tobacco SA (BAT) MD David Crow, whose company is at the forefront of adapting to pressure from governments, consumer groups and medical bodies, says the tobacco issue is the thin edge of the wedge. BAT has 94% of SA's market and contributes 3% to 5% of BAT's operating profit internationally.
"Anyone who thinks that this pressure and legislation in SA stops with tobacco, and possibly the liquor industry, must think again. Junk food, petrochemical industries, mining they are all in the litigation sights in the US, and it will come to SA," he says.
There are indications that basic products such as sugar and coffee could get on to the list of goods that have been marketed without adequate warning of any dangers.
"Welcome to the world of consumer engagement marketing, which is what has evolved for us because of all the pressure," he says. " We are now at the forefront of marketing that is ethical and done with the permission of the target audience."
He defines this as getting to know users personally through "consumer relationship amplifiers". In SA, 116 "amplifiers" are responsible for tens of thousands of personal encounters annually with a select sample of the 6,4million known smokers listed on a comprehensive database. The database is made up of consumers who fit the profiles established for each of BAT's brands.
Crow says the strategy evolved when BAT's products were being locked out of traditional marketing such as television, print media, billboards, certain sponsorships and public relations.
"We had to get innovative or die. So we went back to the purest marketing recipe talking directly to a willing consumer. He or she will willingly represent your product to friends and family with enthusiasm."
Crow says BAT's current marketing approach precludes mass advertising. Each brand ambassador would have no credibility if there was mass advertising, as the smoker of each brand believes he is special. Mass advertising could debase that sense.
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