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Tobacco Industry

Brand Stretching

The introduction of a new product or services in a different product category, using the same name as is being used for an existing product or services.
Brand Extension make use of the reputation of the existing product or services and transfer it to the new products or services in order to increase the sales of both the new products and services, at the same time, promote the existing products.
 
Brand Extension in tobacco Industry:
As more and more countries banning all forms of tobacco advertising, the Tobacco Industry needs to discover new method to advertise their product.
Brand extension is one of the most effective means to achieve the goal of promoting tobacco products and can avoid the risk of litigation. It is an indirect mean to advertise tobacco products.
 
Why do the Tobacco companies adopt the brand extension strategies?
As more and more countries banning all forms of tobacco advertising showing in media, venues and prominent sports events, the Tobacco Industry needs to discover new channels to advertise their product.
Brand Extension is an effective means to achieve the goal of promoting tobacco products and can avoid the risk of litigation. It is an indirect mean to advertise tobacco products.
In Hong Kong, the Tobacco Industry benefits from the grey areas of the existing legislation since it does not regulate any advertising that is extent from cigarette brand if these advertisements do not show any cigarette products.
As a result, the existing of brand extension will continue to attract people to smoke or start smoking. This will slow down the process of tobacco control.
 
How can we tackle the problem of brand extension?
Both citizens and government can contribute:
For citizens, they should notice the deception of brand extensions of the tobacco companies. They can boycott these kinds of products, choose to buy another brands. Making these kinds of products unprofitable, causing the tobacco companies to give up using these products to cut of their loss.
For government, they can educate the citizen the aims of the tobacco companies, since people may lack understands of the strategies of the tobacco companies, and thus being affected by these brand extension.
Moreover, the government must amend the existing law by banning all the advertising which is related to tobacco brands from showing on the mass media, The tobacco companies will lose the important means to promote both the existing tobacco products as well as the brand extension products.
 
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