The tobacco industry has certainly gone through a great many changes in recent years. It all started when many western countries, such as the UK, began banning smoking in public spaces such as pubs and restaurants. Not long after that, the UK also put limitations on how tobacco companies could advertise their cigarettes—doing away with regal designs in favour of bland and bold writing with the health risks front and centre.
They even made it so vendors who were selling tobacco behind the counter, were unable to use a point of sale display. In other words, if you are a consumer wanting to buy cigarettes, you would have to ask for what you want without actually being able to see it advertised on display.
This varies from country to country, though the general consensus is that advertising tobacco has become increasingly difficult (and somewhat frowned upon).
All of that being said, the tobacco industry spends a gargantuan amount of money on advertising, sponsorship, and the promotion of their products. In 2016 alone, in the U.S, there was over $9.5 billion spent (some $26 million a day)!
What is Tobacco Procurement?
Tobacco procurement refers to the process of securing tobacco leaf from a variety of vendors, for the best possible prices. It involves finding the finest products and sourcing them from reputable and reliable suppliers. It involves the logistical processes of getting the tobacco leaf from the point of origin, through the entire manufacturing process, packaging, all the way to the final point of sale.
What are some of the biggest challenges for Tobacco Companies today?
With procurement in tobacco, there are a great number of challenges that tobacco companies are facing. We have already covered the ethical questions that have come into play regarding advertising a product that is linked to so many health issues. Not only that, but:
Increases in tobacco taxes
Warning signs on packages
The removal of branding from tobacco packaging in certain countries
Restrictions on advertising
National law discouraging young people from smoking
Peer-based approaches to helping others quit smoking
Global warming and sustainability issues
These are just a handful of the challenges that tobacco companies will continually face. So, in order to continue profiting in this ever-changing landscape, you’ll need some high-quality promotional merchandise to keep your customers interested in your product.
Using Ethically Designed Branded-Merchandise to Re-Inforce Purchasing Decisions in the Tobacco Industry
Branded merchandise such as POS displays, printed materials, and corporate gifts, can work wonders with increasing brand-awareness and boosting sales.
In the tobacco industry, in certain countries there are restrictions on this. However, there are still ways in which you can use branded merchandise to advertising your tobacco products and maintain customer loyalty—so long as it is done ethically.
For example: corporate gifts can be used when negotiating contract terms with various tobacco leaf suppliers throughout the world. In addition to that, in certain countries, you can use branded point-of-sale displays to encourage people to buy your tobacco—however, you must make them aware of the relevant health risks should you do so. This means that your POS displays have to be designed and optimised very differently to most other printed materials for different industries.
Let UCT Asia be Your Tobacco Promotional Merchandise and Procurement Partner
Why should you choose to work with UCT Asia for your tobacco promotional merchandise requirements?
- UCT Asia can create a wide-range of incredible branded merchandise, from Point of sales merchandise and point-of-sale displays, all the way through to serving materials, on-packs, loyalty gifts and so much more!
- We are a long-established branded and promotional merchandise company, with many reputable brands having worked with us including: Heineken, Peroni, Hendricks Gin, Jägermeister, and more.
- Our focus is on the total cost acquisition when it comes to procurement and sourcing within the tobacco industry. This includes the direct and indirect cost efficiency, manufacturing processes, and ensuring that all logistics and supply chain optimisations are as well-oiled as can be.
- We can help you to reduce your overall costs, both in the sourcing and delivery of the proceed tobacco products.
- UCT boasts an extensive network across Asia. These sites include: Shenzhen, Ningbo, Manilla, Bangkok, Ho Chi Minh, and Phnom Penh.
Whatever you need, UCT Asia would can assist you. With our expertise and extensive network throughout Asia and beyond, we are well-geared to aid you in driving your tobacco business forward in a highly competitive and ever-changing marketplace.