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Strategic Marketing Assignment

The document discusses the history of tobacco industry regulations and strategies to influence policy. It began without regulations but faced antitrust action in 1911. The industry then leveraged political influence to avoid regulations like the 1906 Food and Drug Act. In the 1950s, research linking smoking to cancer emerged, prompting counterstrategies from tobacco companies like public relations campaigns and funding research to cast doubt on the findings. The industry adopted long-term tactics of emphasizing contradictory evidence, finding loopholes in legislation, and influencing researchers.

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85 views2 pages

Strategic Marketing Assignment

The document discusses the history of tobacco industry regulations and strategies to influence policy. It began without regulations but faced antitrust action in 1911. The industry then leveraged political influence to avoid regulations like the 1906 Food and Drug Act. In the 1950s, research linking smoking to cancer emerged, prompting counterstrategies from tobacco companies like public relations campaigns and funding research to cast doubt on the findings. The industry adopted long-term tactics of emphasizing contradictory evidence, finding loopholes in legislation, and influencing researchers.

Uploaded by

Baderalhussain0
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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To evaluate the formation and implementation of non-market strategies in context of regulatory, legislative and legal institutions.

In the beginning the tobacco industry was not subject to any regulations or legislation. It started producing cigarette for mass market when the patent was awarded to Virginian James Bonsack in 1880. However, the first legal action by the US Supreme Court was taken when in 1911, Dukes American Tobacco Company (which controlled 92% of the worlds tobacco market) was dissolved as a monopoly and broken into five major companies as American Tobacco Company was declared in violation of Sherman Anti-Trust Act of 1890. Since the tobacco industry was booming in the early twentieth century, it leveraged it strong financial clout by creating its own political constituency comprising of fifty or more tobaccodistrict members of U.S. Nonetheless, tobacco industrys lobbying power at that time and by judged from the following two acts: Removal of nicotine from the list of drugs to be regulated under Food and Drug Act of 1906. Agricultural Adjustment Act of 1933, which allotted tobacco production quotas, but the most important article in this act was that the unsold tobacco will be bought by the government. In this was the tobacco companies were successful in protecting tobacco farmers.

1950s became the era where numerous experiments were done to find the causal relationship between the tobacco and cancer. Though initially the scientists concluded that there exists no such relationship but in 1953, Wynder-Graham Experiment did claim to find the direct relationship. The reaction of the cigarette companies to Wynder-Graham Experiment was raucous. They countered the Wynder-Graham Experiment by undertaking following measures: 1. Firstly, by putting forward Dr. Clarence Cook Littles constitutional hypothesis. He maintained that the cancer is caused by the genetic makeup of the person, while simultaneously dismissing the Wynder-Graham Experiment as merely statistical. 2. Secondly, by collectively hiring a public relations firm named Hill and Knowlton, which came up with four options for the cigarette companies. 3. A Franks Statement to Cigarette Smokers, which was a detailed full-page advertisement, published in 448 leading newspapers. 4. Laying foundation to the formation of Tobacco Industry Research Committee (TIRC) in 1954, later renamed as Council of Tobacco research (CTR) to be led by independent and reputable scientists so that the industrys credibility is restored. Moreover, from that period onwards, the industry adopted three key tactics; 1. Stressing contradictory evidence and knowledge gaps 2. Finding loopholes in arguments advanced for legislation 3. And, influencing researchers not to publish unfavorable research.

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