Assessment of IQOS Marketing Strategies at Points-of-Sale in Israel at a Time of Regulatory Transition

Abstract

Introduction IQOS, a tobacco heating system, and accompanying tobacco sticks (HEETS) entered the Israeli market in 2016, prior to rapid regulatory change. This study assessed IQOS marketing strategies and regulatory compliance at IQOS/HEETS point-of-sale (POS) in Israel in December 17, 2019-January 7, 2020, after the ban on advertisement went into effect in March 8, 2019. Methods Research staff audited 80 randomly-selected IQOS/HEETS POS in 4 cities using a structured form to assess store types, product placement, price, promotional strategies, and regulatory compliance. POS data was linked to neighbourhood characteristics, including socioeconomic status (SES), ethnicity, and proximity (under 300 meters) to schools. Results Almost half of the stores (48.7%) were convenience stores. HEETS were visible to the customers in 46.1% of POS, 35% carried at least four HEETS colours, 20.0% had IQOS/HEETS special displays, and 13.8% displayed HEETS near youth-oriented merchandise. Mean HEETS pack price was 8.7 USD (range: 7.5-11.3 USD), 27% more than the least expensive cigarette pack, and 39% less than the most expensive cigarette. HEETS promotions were uncommon. Compliance with the newly-introduced advertisement ban was fairly high for HEETS (94.8%). Only one POS was located in a low-SES area; 68.7% were in close proximity to a school. Conclusion The relatively limited IQOS/HEETS marketing at POS suggests that, with regulatory changes, online or other forms of marketing might be prioritized. IQOS may be promoted to higher SES populations, as indicated by pricing and POS neighbourhood characteristics. Access near schools and placement near youth-oriented merchandise are potential concerns necessitating further research. Implications Globally, the point-of-sale is considered the least regulated channel for advertising and marketing of tobacco products. Assessing IQOS marketing strategies at the point-of-sale provides valuable findings that can inform regulatory efforts in Israel and other countries as well. Limited IQOS/HEETS marketing at point-of-sale suggests that primary marketing strategies may shift to online or other forms/channels as regulatory contexts become more progressive/restrictive. Ongoing surveillance of IQOS via online marketing and point-of-sales, specifically with regard to product placement and proximity to schools, is needed.

IQOS marketing strategies at point-of-sales: a cross-sectional survey with retailers

“…Findings from this study, as well as a previous study in Israel using POS audits, suggest that PMI is circumventing the POS display ban through special displays, flags and signs to continue promoting IQOS and HEETS at POS 32 45. This is also in line with similar research on IQOS marketing at POS from Canada46 and with previous research exploring PMI’s strategies to adapt to tobacco control legislation for combustible tobacco products 47–49.…”

“…As restrictions to POS marketing expanded to include a POS display ban and plain packaging, PMI increased marketing strategies directed at the retailers themselves and price discounts to the customers, both legal under the current tobacco control legislation in Israel. These findings underscore the importance of using multiple strategies (eg, POS audits,10 32 35 36 merchant surveys/interviews6 12 13 37–40 and mystery shopper assessments41 42) to better understand the retail environment as new products emerge, changes to tobacco legislation and regulation are implemented, and societal circumstances alter the retail environment 17 43 44…”

“…A prior study assessing IQOS POS marketing in Israel after the advertisement ban but before plain packaging and the POS display ban, indicated that although 95% of POS complied with the advertisement ban,32 there were special efforts directed towards promoting IQOS, including those exposing youth 32. However, this study used concealed audits, preventing assessment of marketing strategies directed at retailers themselves and was conducted prior to the pandemic.…”

IQOS and cigarette advertising across regulatory periods and population groups in Israel: a longitudinal analysis

“…Heated tobacco products (HTPs) are electronic devices that heat tobacco 1–4. Some research suggests that smokers who switch completely from combustible cigarettes to HTPs substantially reduce their exposure to harmful chemicals 5 6.…”

“…Partial tobacco product advertisement bans might not reduce the industry’s spending on advertising, mainly because tobacco companies shift their advertisement to other venues such as digital platforms and points of sale (POS) 25–28. A recent study with IQOS POS retailers in Israel suggests that PMI increased direct marketing to the POS after an advertisement ban went into effect 3 29. Exploring trends in adspend, before and after various regulatory decisions, may provide insight into how tobacco companies respond to these regulatory changes, and which products are prioritised.…”