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The tobacco companies have consistently denied that their marketing efforts have had any effect on the smoking behavior of adolescents and contend instead that the sole purpose of marketing by individual companies has been to influence existing adult smokers to smoke the company’s brands of cigarettes rather than those of a competitor. In addition, the industry has claimed that there is no evidence that cigarette marketing affects the smoking behavior of youth and that the definitive study on this matter has not yet been conducted. This section reviews the evidence on the industry’s position regarding the purpose of marketing and the industry’s actual behavior in using imagery to appeal to youth.

Tobacco companies have consistently stated that the purpose of spending billions of dollars on cigarette marketing is to attract and hold current adult smokers to their brands of cigarettes (Tye et al. 1987). In addition, the companies deny that marketing campaigns are intended to increase demand for cigarettes among existing smokers or to encourage young people to initiate smoking (Cummings et al. 2002). The economic value of the amount of brand switching that occurs, however, does not justify the magnitude of marketing expenditures (Tye et al. 1987; Siegel et al. 1994). Indeed, because most brands are owned by a few tobacco companies, most switching of brands would not have a substantial impact on any one company’s profits. The most plausible justification for advertising expenditures at the levels that have been observed would be to attract new customers to generate a long-term cash flow for the companies (Tye et al. 1987). In addition, the nature of the imagery used in the advertisements clearly appeals to the aspirations of adolescents, suggesting that they are a target (Perry 1999).

Across industries, marketing is intended to sell existing products and to facilitate the introduction of new ones into the marketplace. In 1986, Emerson Foote, former chief executive officer (CEO) and founder of McCann-Erickson, a global advertising agency, said,

The cigarette industry has been artfully maintaining that cigarette advertising has nothing to do with total sales. This is complete and utter nonsense. The industry knows it is nonsense…. I am always amused by the suggestion that advertising, a function that has been shown to increase consumption of virtually every other product, somehow miraculously fails to work for tobacco products (Foote 1981, p. 1668).

The tobacco industry aggressively pursues marketing strategies to build national and global brands geared toward young adults (Cohen 2000; Hafez and Ling 2005). RJR based Joe Camel on a popular French campaign depicting a stylized French cartoon camel (Cohen 2000) that was appealing to a younger audience. Philip Morris’ strategy for Marlboro encompassed three principal foci: psychographic segmentation, brand studies, and advertising/communication (Hafez and Ling 2005). The company’s strategy now appears to be translated into a standardized global strategy.

Despite the industry’s arguments about brand loyalty and inducing existing smokers to switch brands, there are times when cigarette company executives themselves have acknowledged that marketing reaches and influences underage adolescents. For example, in 1997, Bennett S. LeBow, CEO of the holding company that owns Liggett, stated: “Liggett acknowledges that the tobacco industry markets to ‘youth’, which means those under 18 years of age, and not just those 18–24 years of age” (LeBow 1997b, Bates No. VDOJ31357/1375, p. 6).

Later that year, in litigation in Minnesota, Mr. LeBow further testified that cigarette companies targeted young people “to try to keep people smoking, keep their business going” (LeBow 1997a, Bates No. LG0312696/3542, p. 343). Draper Daniels, who first created the Marlboro man for Philip Morris, wrote in his 1974 book entitled GIANTS, pigmies, AND OTHER ADVERTISING PEOPLE,

…successful cigarette advertising involves showing the kind of people most people would like to be, doing the kind of thing most people would like to do, and smoking up a storm. I don’t know any way of doing this that doesn’t tempt young people to smoke, and in view of present knowledge, this is something I prefer not to do (Daniels 1974, p. 245).

After Harley-Davidson USA, a manufacturer of motorcycles, had licensed its name to Lorillard Tobacco Company for a cigarette brand to be called Harley-Davidson, the company expressed its concern about cigarette advertising to Lorillard in a letter dated August 17, 1993. Timothy K. Hoelter, vice president and general counsel for Harley-Davidson, wrote to Ronald S. Goldbrenner, associate general counsel of Lorillard, stating, “The recent California and FTC attacks on the Joe Camel advertising campaign are alarming and compel us to be sure that our Property will not be used to recruit underage smokers, intentionally or otherwise (Hoelter 1993, Bates No. 91058719/8720, p. 1). Mr. Hoelter went on to state: “We need to know what ads will be used, in what publications and on what billboards. This will help us assess the likelihood that children may be targets or so close to the intended targets as to be ‘in harm’s way’” (Bates No. 91058719/8720, p. 2).

Following correspondence from Lorillard, Harley-Davidson commissioned a firm with expertise in child behavior to conduct an independent study of the likely appeal of Lorillard’s promotional campaign to children. The research firm conducted focus groups, group discussions, individual interviews, and telephone surveys and concluded that “Lorillard’s intended promotional campaign for Harley-Davidson cigarettes would appeal to… children who are below the legal age to buy or smoke cigarettes” (Harley-Davidson 1993, Bates No. 93791722/1760, p. 30, 33). In addition, in legal filings Harley-Davidson noted that “Lorillard continued to refuse to reveal its test data and analysis about the likely effects of its promotional campaign, and Harley-Davidson inferred that the withheld data and analysis would have suggested possible or likely recruitment of underage persons” (Harley-Davidson 1993, Bates No. 93791722/1760, p. 34). As a result, the Harley-Davidson campaign was not developed.

In a 1983 confidential report, RJR emphasized the importance of “younger adults” to the industry as a whole:

Why, then, are younger adult smokers important to RJR? Younger adults are the only source of replacement smokers. Repeated government studies (Appendix B) have shown that:

  • Less than one-third of smokers (31%) start after age 18.

  • Only 5% of smokers start after age 24.

Thus, today’s younger adult smoking behavior will largely determine the trend of Industry volume over the next several decades. If younger adults turn away from smoking, the Industry must decline, just as a population which does not give birth will eventually dwindle. In such an environment, a positive RJR sales trend would require disproportionate share gains and/or steep price increases (which could depress volume) (RJR 1983b, Bates No. 503473660/3665, p. 1).

As is the case with all advertising, a substantial portion of tobacco advertising consists of imagery that conveys little factual information about the characteristics of the product. In effect, tobacco advertising fulfills many of the aspirations of young people by effectively using themes of independence, liberation, attractiveness, adventurousness, sophistication, glamour, athleticism, social acceptability and inclusion, sexual attractiveness, thinness, popularity, rebelliousness, and being “cool” (United States v. Philip Morris USA, 449F. Supp. 2d 1, 980 [D.D.C. 2006]; NCI 2008).

The use of Joe Camel is an exemplar for understanding the importance of imagery to reposition a brand for a younger age group. RJR conducted extensive studies on initiation of smoking by adolescents and factors behind the choice of their first brand (Cohen 2000). This research was geared toward repositioning Camel for a younger market, or as is said in the RJR documents, “youthening” the brand (Carpenter 1985, Bates No. 506768857, p. 1).

In fact, RJR’s documents are replete with references to the importance of imagery in reaching the Camel target market, including comments such as the following:

In order to stimulate [younger adult smokers] to think about brand alternatives, the advertising and brand personality must ‘jolt’ the target consumer. Since CAMEL does not have a demonstrably different or unique product (rational) benefit to sell, this jolt needs to be based on an emotional response and is unlikely to be accomplished with advertising which looks conventional or traditional. Studies have shown that the so-called ‘hot buttons’ for younger adults include some of the following themes: Escape into imagination.… Excitement/fun is success: Younger adults center their lives on having fun in every way possible and at every time possible. Their definition of success is ‘enjoying today’ which differentiates them from older smokers (RJR 1986a, Bates No. 506768775/8784, p. 9).

A 1988 Lorillard study entitled “Newport Image Study” concluded that “in all areas Newport smokers were viewed as party-goers, those that do their own thing and [are] fun-loving” and “in all areas Newport smokers were viewed younger and more fun-loving than Kool and Salem smokers” (Lorillard 1988, Bates No. 92272605/2665, p. 48). A 1991 Lorillard “Newport 1992 Strategic Marketing Plan” discussed the importance of the “Alive with Pleasure” advertising campaign, coupled with price promotions, to “generate interest and trial among entry level smokers” (Lorillard 1991, Bates No. 92011118/1156, p. 20). In addition, the industry capitalized on themes of rebellion to attract younger customers. For example, a report for an RJR Canadian subsidiary described young male smokers as “going through a stage where they are seeking to express their independence and individuality [smoking] (Pollay 1989, p. 240). In another document, it was noted that “Export A … appeals to their rebellious nature…” (Ness Motley 1982, Bates No. 800057286/7321, p. 14). Moreover, a 1978 B&W document stated, “Imagery will continue to be important in brand selection for teenagers” (B&W 1978, Bates No. 667007711/7714, p. 1). These efforts to encourage brand loyalty by building brand image are particularly relevant for youth and young adults. Tobacco lifestyle-oriented marketing messages targeting young males have served to connect tobacco brand image with the user’s self image and simultaneously portray risk-taking behavior as a normal part of masculinity (Cortese and Ling 2011). As previously discussed, the “Camel No. 9” campaign theme is geared to young women (Pierce et al. 2010). In addition, RJR employed a campaign geared toward young adult social trendsetters, who are commonly referred to as “hipsters” (Hendlin et al. 2010).

The relationships between social relationships and youth smoking are well established through previous research and reviews, including the 1994 Surgeon General’s report on preventing tobacco use among young people (USDHHS 1994). That report summarized the particularly strong association between smoking by siblings and peers and initiation of smoking among youth. The relationship between adolescents’ perceptions and their use of tobacco is also well documented. As demonstrated in both cross-sectional and prospective longitudinal studies, the perceptions of youth about their social environment, including peer norms, perceived cultural norms, and perceived parental expectations, strongly predict smoking in this age group (Chassin et al. 1986; Conrad et al. 1992; USDHHS 1994).

Peer and parental influences are both associated with the decision of an adolescent to begin smoking, but it is important to understand the relationship between initiation of smoking and peer influence. Peer influence is a factor that has been consistently demonstrated to affect the onset and maintenance of smoking. As discussed earlier and in Chapter 4, it is also important to consider that, to the extent that tobacco industry marketing and promotional activities stimulate peers and parents to smoke, these influences contribute to smoking by adolescents (USDHHS 1994). Therefore, peer and parental influences are acting as mediating variables between advertising and adolescent smoking. Thus, including peer influence only as an independent variable in studies that examine the direct effect of cigarette advertising on adolescent smoking will lead to an underestimate of the total (direct and indirect, mediated by peer smoking) effect of cigarette advertising and other protobacco media influences, such as exposure to on-screen smoking in movies (Wills et al. 2007, 2008; Ling et al. 2009).

Young people want to be popular, to be seen as individuals by their friends, and to resemble those they most admire. Cigarette advertising exploits these adolescent desires, using imagery to create the impression of popularity, individuality, and kinship. There is substantial evidence that advertising of tobacco affects adolescents’ perceptions of the attractiveness and pervasiveness of smoking, and the weight of the evidence suggests that cigarette marketing, particularly image-based advertising, and peer influence have additive effects on adolescent smoking (USDHHS 1994). A study by Evans and colleagues (1995) in California that examined the relationship between exposure of adolescents to tobacco marketing and susceptibility to smoking also examined such factors as smoking by peers and family and perceived school performance. In this study, tobacco marketing increased the susceptibility of adolescents to smoking in a way that was independent of exposure to friends or family who smoked. When combined, minimal exposure to tobacco marketing and exposure to other smokers increased the likelihood of susceptibility to smoking fourfold (Evans et al. 1995).

Additional research has examined the intricate relationships between tobacco marketing, peer relationships, and adolescent smoking behavior. Specifically, tobacco marketing may affect the selection of peer groups, which, in turn, influence smoking behavior among adolescents. Pechmann and Knight (2002) reported the results of a randomized experiment that compared two conditions: exposure to cigarette ads (vs. noncigarette ads) and exposure to peers who smoked (vs. peers who did not smoke). Both exposure to cigarette ads and peers who smoked had main effects on adolescents’ positive stereotypes of smokers and intentions to smoke. When considered concurrently, however, the data revealed a mediation relationship for cigarette ads. Specifically, the significant influence of cigarette advertising on intentions to smoke became nonsignificant when positive stereotypic beliefs about smokers were considered, suggesting that cigarette ads increase favorable attitudes about smokers, which increase an adolescent’s intention and susceptibility to smoke. These results also provide support for the idea that tobacco advertising affects adolescent smoking across multiple levels of influence (Deighton 1984; Pechmann 2001; Pechmann and Knight 2002). Advertising primes positive attitudes and beliefs about smokers; as Leventhal and Keeshan (1993) observed, adolescents may then be drawn to peers who smoke and who mirror those positive attitudes primed by advertisements. The idea that adolescents choose their peer group on the basis of their attitudes about smoking and their smoking behavior has been supported by numerous studies that aim to explain the homogeneity of peer groups (Ennett and Bauman 1994; Engels et al. 1997; Kobus 2003; de Vries et al. 2006; Mercken et al. 2007).

The preceding studies demonstrate the importance of two processes underlying the role that peers play in adolescent smoking: socialization and selection. Peers who smoke socialize the nonsmoking members of a social network by increasing perceptions of the prevalence of smoking, by modeling the behavior, and through the process of peer acceptance. Adolescents who believe smoking to be prevalent are more likely to smoke (Chassin et al. 1984; Sussman et al. 1988; Botvin et al. 1993). Moreover, adolescents who hold positive beliefs about smokers or who smoke themselves choose peers who affirm those beliefs and attitudes that were primed by tobacco marketing. In this regard, tobacco marketing, socialization, and the selection of friends contribute to a dynamic system that serves to increase adolescent smoking social networks (Kobus 2003). From internal industry documents, depositions, and trial testimony, it is clear that the tobacco industry understands the need to be accepted, particularly among youth, and has attempted to exploit this need through its marketing efforts. For example, in a 1984 report, a Philip Morris scientist stated that

…we need not try to understand why young people have a herd instinct. From their choices of food, clothes, transportation, entertainment, heroes, friends, hangouts, etc., it is clear that they do. More important to us (and probably to many other product categories) is why they make certain choices instead of others (Tindall 1984, Bates No. 2001265000/5045, p. 28).

In a deposition for the U.S. Department of Justice case, Nancy B. Lund, a Philip Morris executive, testified “…at least what we know about young adult smokers, for some of them, the fact that Marlboro is a popular brand may be a factor in why they choose Marlboro” (Philip Morris USA 2004a, Bates No. 5001054172/4245, p. 35). A 1998 confidential document of Leo Burnett (Philip Morris’ advertising agency that developed the Marlboro Man) recommended adding camaraderie (peer appeal) to the core values of Marlboro Country (Philip Morris USA 1998). As recently as 1999, a Philip Morris “National Market Structure Study” reported, “The attributes associated with brand choices are very different from those stated to be important – popularity is key” (Philip Morris USA 1999b, Bates No. 2702700028B/0028BP, p. 12). Plans by Philip Morris to market its Parliament cigarettes to 18- to 24-year-olds in 1987 included the following statement:

This younger age group is more likely to make decisions based on peer pressure. To convey the idea that everyone is smoking Parliament, the brand should have continuous high levels of visibility in as many pack outlets as possible (Philip Morris USA 1987, Bates No. 2045287048/7092, p. 16).

Heavy exposure leads to overestimates of smoking prevalence among adolescents, and this is understood to be a significant risk factor in leading adolescents to smoke (Botvin et al. 1993).

Philip Morris was not the only company to understand the importance of peer pressure and its relevance to marketing campaigns. RJR studied the success of Marlboro and attributed some of that success to peer acceptance. A 1986 RJR document stated, “Marlboro’s key strength relates to peer acceptability and belonging…. Marlboro is perceived by younger adult smokers as a brand which provides a sense of belonging to the peer group” (RJR 1986a, Bates No. 505938058/8063, p. 7). In a 1986 RJR document about the Joe Camel campaign, vice president for marketing R.T. Caufield stated:

Overall, CAMEL advertising will be directed toward using peer acceptance/influence to provide the motivation for target smokers to select CAMEL (Caufield 1986, Bates No. 503969238/9242, p. 1).

In another example, this one from 1984, in developing marketing materials for its upcoming Tempo brand, RJR characterized the target group as

…extremely influenced by their peer group… influenced by the brand choice of their friends. Third Family (the code name for Tempo) will differentiate itself from competitive brands by major usage of imagery which portrays the positive social appeal of peer group acceptance. Third Family imagery portrays relaxing and enjoyable social interaction where acceptance by the group provides a sense of belonging and security (J. Walter Thompson 1984, Bates No. TCA13320/3333, p. 5).

Pollay observed in an article published in 2000: “Put briefly, it seems that TEMPO’s advertising was too trendy and heavy handed in its style and deployment, becoming transparently interested in a youthful market. This back-fired because adolescents are decidedly disinterested in symbols of adolescence, wanting symbols of the adulthood they aspire to” (Pollay 2000, p. 143).

Evidence of the industry’s understanding in the 1970s, 1980s, and 1990s of the importance of peer approval for adolescent smoking behavior is widespread and well documented. Proceeding from this understanding, marketing campaigns tried to emphasize the popularity of brands, hoping this would translate to their being perceived as more popular among peers. Two passages from the RJR Secret Strategic Research Report subtitled “Younger Adult Smokers: Strategies and Opportunities” are illustrative: “Marlboro’s key imagery was not masculinity, it was younger adult identity/belonging” and “This could mean as social pressures tend to isolate younger adult smokers from their nonsmoking peers, they have an increased need to identify with their smoking peers, to smoke the ‘belonging’ brand” (Burrows 1984, Bates No. 501928462/8550, p. 28).

Lorillard considered Newport to be its “peer brand” among young adult smokers (Brooks 1993; Lorillard 1993b), and a 1999 creative strategy it used with the intention of increasing volume and gaining long-term growth was to

Develop creative executions that continue to strengthen and refresh Newport’s advantage as the peer brand of choice among younger adult smokers by reinforcing the perception that Newport delivers smoking pleasure in social settings relative to their lifestyles. Continue to leverage the Pleasure campaign equity to reinforce the brand’s fun, spontaneous, upbeat image through a variety of settings portraying social interaction, spontaneous fun, refreshment and smoking situations (Lorillard 1999, Bates No. 98196920/6942, p. 8).

Judge Kessler concluded that

According to Shari Teitelbaum, Philip Morris Director of Marketing and Sales Decision Support, Philip Morris has used the term “herd smoker” to refer to smokers of the most popular cigarette brands, like Marlboro, Camel, and Newport, because these brands attract the largest share of young adult smokers. Herd brands are “the most popular, it’s for smokers that would be likely to kind of follow the herd, kind of more of a group mentality type of thing” (United States v. Philip Morris USA, 449F. Supp. 2d 1, 1026 [D.D.C. 2006].

Tobacco companies pursued promotions aimed at young adults in bars and nightclubs increasingly through the 1990s (Sepe et al. 2002; Biener et al. 2004; Rigotti et al. 2005), in part because these young adults were viewed as trendsetters who were highly likely to influence the behaviors of their peers (Katz and Lavack 2002; Sepe et al. 2002). A study of young adults in California reported approximately 33% of all young adults go to bars and clubs at least sometimes, and bar and club goers had over three times greater odds to be daily smokers and over three times the odds to be social smokers (Gilpin et al. 2005).

Marketing to young adult trendsetters remains important. In a relevant study, Hendlin and colleagues (2010) used tobacco industry documents and analysis of industry marketing materials to understand why and how RJR and other tobacco companies have marketed tobacco products to young adult consumers who are social trendsetters (“hipsters”) to recruit other trendsetters and average consumers, as well as youth who look to hipsters as role models, to smoke. These authors found that since 1995, when RJR developed its marketing campaigns to better suit the lifestyle, image identity, and attitudes of hip trendsetters, Camel’s brand identity had actively shifted to more closely convey the hipster persona. Camel emphasized events such as promotional music tours to link the brand and smoking to activities and symbols appealing to hipsters and their emulating masses.

In sum, far from being a completely independent determinant of youth smoking, peer influence is yet another channel for communication on which the industry can capitalize to promote smoking by youth. It is important to note that the tobacco industry routinely attributes smoking to peer pressure, but it does not acknowledge the relationship between advertising and peer influence or the effects of advertising on normative behavior and perceptions of popularity and peer acceptance. Tobacco companies have consistently stated that the purpose of cigarette marketing is to attract and hold current adult smokers to their brands of cigarette, but the evidence reviewed shows that these efforts also affect peer influence to smoke and encourage smoking among young people.