IQOS point-of-sale marketing: a comparison between Arab and Jewish neighborhoods in Israel

Abstract

Background: Philip Morris International's (PMI) IQOS, with its heatsticks (HEETS), is the heated tobacco product with the largest global market share. IQOS and/or electronic cigarettes use rate is higher among Arabs vs. Jews in Israel. This paper aims to compare IQOS point-of-sale (POS) marketing strategies, and regulatory compliance in Arab vs. Jewish neighborhoods in Israel.

Methods: We integrated data from two separate studies including a cross-sectional survey with IQOS retailers (December 2020-April 2021) and audits of POS that sold IQOS/HEETS (April 2021-July 2021) in 5 large cities in Israel, after marketing restrictions including a POS display ban and plain packaging became effective in Israel (January 2020). The survey included 69 POS (21 Arab, 48 Jewish neighborhoods) and the audits included 129 POS (48 Arab, 81 Jewish neighborhoods). Comparisons of IQOS marketing strategies between POS in Arab and Jewish neighborhoods were conducted using Chi-Square test, Fisher's exact test or Mann-Whitney test, as appropriate. Thematic analysis was used to analyze open-ended questions.

Results: Most marketing strategies, such as promotions to customers, were uniform across POS in Arab and Jewish neighborhoods. The most noteworthy differences were that a higher proportion of retailers from Arab neighborhoods were invited to IQOS parties (47.6% vs. 21.7%, p<0.05) and reported personal communication with a PMI representative (80.0% vs. 51.2%, p<0.05). Additionally, PMI representatives assisted POS in both Arab and Jewish neighborhoods in implementing the display ban by providing free compliant cabinets and product placement instructions, and directly interacted with customers. POS in Arab neighborhoods were more compliant with the display ban (25.5% vs. 8.8%, p<0.05), but less compliant with plain packaging (62.5% vs. 79.3%, p<0.05).

Conclusions: There were not many notable differences in IQOS marketing across POS in Arab vs. Jewish neighborhoods, but PMI utilized marketing elements of cultural significance, especially for POS in Arab neighborhoods, such as more personal communication and invitation to social events. Continuous surveillance of tobacco POS marketing and legislation compliance is needed, with a special focus on demographic/location-based differences.

Keywords: IQOS; heated tobacco products; marketing; point-of-sale.

Figure 1. Retailers’ attitudes towards IQOS:

this shows the percentage of retailers who chose each statement (not mutually conclusive) about how they would describe the IQOS/HEETS to their customers who might ask about their tobacco products or IQOS. The start sign denotes statistically significant differences, using Chi-square test (p<0.05)

Figure 2

A.IQOS/HEETS special display cases nested within a display case for cigarettes: On the left: IQOS special display with the Hebrew words for “here you can buy heated tobacco”. On the right: IQOS special display with the Arabic words for “we have heated tobacco”. Both displays use IQOS’ brand colors, sell the IQOS device, are non-compliant with the display ban, have a special placement for HEETS in the colored section on top of the where the device is displayed with HEETS price stickers. The picture on the left also contains tobacco products not in plain packaging. Both are from POS in Arab neighborhoods. B. Special displays for only IQOS/HEETS: IQOS special display cases with the Hebrew words for “alternative for smoking cigarettes”. The one on the left is with the light turned off and has a QR code, and the one on the right is with the light turned on. Both are found at POS in Jewish neighborhoods.