1. Sponsored by the California Department of Health Services, Tobacco Control Section Presented by Christine Fenlon CMA Foundation April 30, 2002 IN THE BREAK ROOM: WHAT RETAILERS HAVE TO SAY Methodology and Key Findings From Tobacco Retailer Focus Groups

2. Sponsored by the California Department of Health Services, Tobacco Control Section “Advertising and Promotions” Focus Groups coordinated by Ellen Feighery, Public Health Institute “Youth Access” Focus Groups coordinated by Christine Fenlon, CMA Foundation Retailer Focus Groups conducted by Cooper Roberts Research, Inc. September - November 2001

3. Sponsored by the California Department of Health Services, Tobacco Control Section GENERAL PURPOSE of the FOCUS GROUPS In the Break Room: What Retailers Say Learn about tobacco advertising and sales in the retail environment Discover retailers’ willingness to modify their store policies and practices

4. Sponsored by the California Department of Health Services, Tobacco Control Section Marketing of tobacco products in stores PURPOSE of ADVERTISING & PROMOTIONS The mechanisms tobacco companies use to provide retailers with financial incentives to increase sales Their perspectives on changing or reducing advertising in their stores In the Break Room: What Retailers Say

5. Sponsored by the California Department of Health Services, Tobacco Control Section In the Break Room: What Retailers Say Problems retailers face with regard to illegal sales to minors and recommendations to prevent youth access PURPOSE of ILLEGAL SALES TO MINORS Tobacco sales training provided for clerks Their reaction to health messages and tobacco licensing fees

6. Sponsored by the California Department of Health Services, Tobacco Control Section Eleven mini-focus groups were conducted among California retailers and clerks METHODOLOGY: GENERAL In the Break Room: What Retailers Say The sponsor of the research was not identified Each group was approximately two hours long On average, the groups were comprised of six retailers

7. Sponsored by the California Department of Health Services, Tobacco Control Section Eight groups of owners and/or managers from independent or independent-franchise stores METHODOLOGY: GROUPS RECRUITED In the Break Room: What Retailers Say Two groups among English-speaking respondents of Chinese descent Six groups without any ethnic background requirements

8. Sponsored by the California Department of Health Services, Tobacco Control Section In the Break Room: What Retailers Say METHODOLOGY: GROUPS RECRUITED Two groups of clerks from chain and independent stores Rural and urban retailers One group of store mangers from retail supermarket or grocery supply chains

9. Sponsored by the California Department of Health Services, Tobacco Control Section The few differences in attitudes noted in the focus groups were driven primarily by the type of store (independent vs. franchise vs. chain) and the volume of tobacco sales rather than from the various geographic locations and ethnic backgrounds involved in the study. DIFFERENCES IN RESPONSES In the Break Room: What Retailers Say

10. Sponsored by the California Department of Health Services, Tobacco Control Section Retailers acknowledge that in-store advertising increases sales of products being advertised whether for soda, chips or cigarettes Advertising closest to the front counter has the biggest impact on sales Advertising that highlights a reduced price is the most effective Advertising/Promotions Focus Group Findings IN-STORE ADVERTISING AND PROMOTIONS

11. Sponsored by the California Department of Health Services, Tobacco Control Section Price reductions (sales) and multi-pack discounts, are the most prevalent and effective promotions offered for cigarettes Sales on packs or cartons of cigarettes are frequently due to a “buy down” for which the retailer is reimbursed the amount of the discount per pack after the sale ends TOBACCO PROMOTIONS Advertising/Promotions Focus Group Findings

12. Sponsored by the California Department of Health Services, Tobacco Control Section The tobacco company with the highest bid will win the right to display their products in the “first” or most visible position— usually on the top or “eye level” shelf In several independent stores, the tobacco products themselves have become the primary advertising for the brand. These include counter-top displays of cigarettes in plexi-glass PRODUCT ADVERTISING AND PLACEMENT Advertising/Promotions Focus Group Findings

13. Sponsored by the California Department of Health Services, Tobacco Control Section The all-encompassing contract attempts to control as much of the store space and as many promotions as it can Less-involved contracts usually include the “buy two packs and get one free” displays The tobacco company usually provides displays and signs to post for items on sale or promotion. The retailer is paid for using the display(s), which is often referred to as the “monthly payment” CONTRACTS Advertising/Promotions Focus Group Findings

14. Sponsored by the California Department of Health Services, Tobacco Control Section While retailers want to be responsive to their community, they are going to ensure that requested changes will not hurt their business or offend other customers Retailers are reluctant to remove any item, including displays or advertising, which are part of a contract Tobacco is often called a “loss leader,” because a customer coming in to buy tobacco may also purchase bread, chips and soda COUNTER DISPLAYS AND ADVERTISING Advertising/Promotions Focus Group Findings

15. Sponsored by the California Department of Health Services, Tobacco Control Section Out-of-state licenses, passports and military identifications (IDs) are the biggest concern for most retailers Most retailers have experienced verbal abuse because they asked for ID or refused to sell tobacco to suspected minors Underage customers often ask adults to purchase tobacco for them, putting the retailer in an awkward position PROBLEMS FACED BY RETAILERS Youth Access Focus Group Findings

16. Sponsored by the California Department of Health Services, Tobacco Control Section Clerk training for tobacco sales varies from informal verbal instructions at independent stores to being a component of a more formal three to five day overall training for cashiers at chain stores Most clerks receive some sort of paper or electronic calendar to aid them in determining the correct birth date for legal tobacco sales CLERK TRAINING Youth Access Focus Group Findings

17. Sponsored by the California Department of Health Services, Tobacco Control Section Typically, retailers go over the rules about checking ID for tobacco sales and explain the consequences for the clerk if an illegal sale is made — many clerks are required to sign a paper indicating they understand the penalty if they make an illegal sale Many chains incorporate instructional videos into their tobacco-training programs. Some mentioned using the “We Card” video CLERK TRAINING Youth Access Focus Group Findings

18. Sponsored by the California Department of Health Services, Tobacco Control Section Some retailers believe that the most important message to convey to a clerks is: that they will be fined and/or fired for selling tobacco to minors Most clerks say that rotating various messages in the break room to remind them to check for ID would be effective The majority of stores use cash register scanners that prompt a clerk to ask for ID or require that a birth date be entered RETAILER RECOMMENDATIONS Youth Access Focus Group Findings

19. Sponsored by the California Department of Health Services, Tobacco Control Section Most retailers and clerks believe that posting heath-related signage inside stores will not deter minors from buying tobacco products Retailers say that it is not their responsibility to educate customers about the dangers of smoking, nor is their store the appropriate place to do so Retailers worry that the health messages may offend their adult smoking customers REACTION TO HEALTH MESSAGES Youth Access Focus Group Findings

20. Sponsored by the California Department of Health Services, Tobacco Control Section Most chain managers say that a tobacco license would reduce the sale of tobacco to minors and view it as simply another cost associated with doing business. Initially, many independent storeowners were opposed to a licensing fee. However, once a figure of $100 to $200 was mentioned they admitted that licensing could be an effective tool in preventing illegal tobacco sales to minors. TOBACCO LICENSURE Youth Access Focus Group Findings

21. Sponsored by the California Department of Health Services, Tobacco Control Section Both chains and independents store owners agreed that they would support a “flat fee” over one based on “sales volume.” They don’t want a licensing fee that would be calculated on the total number of cigarettes sold in their store. TOBACCO LICENSURE Youth Access Focus Group Findings

22. Sponsored by the California Department of Health Services, Tobacco Control Section For more details about what California retailers had to say or information about conducting local retailer focus groups, log on to the STORE web site at: www.tecc.org/store. In the Break Room: What Retailers Say