CONFERENCE PROCEEDING
Business-to-business marketing: The relationship between tobacco companies and retailers in Jakarta, Indonesia
More details
Hide details
1
Department of Health, Behavior and Society, Institute for Global Tobacco Control, Johns Hopkins Bloomberg School of Public Health, Baltimore, United States
2
Department of Family Medicine, University of North Carolina School of Medicine, Chapel Hill, United States
3
Mitra Market Research, Jakarta, Indonesia
4
Ministerio de Salud Pública y Asistencia Social, Guatemala City, Guatemala
Publication date: 2025-06-23
Tob. Induc. Dis. 2025;23(Suppl 1):A350
KEYWORDS
TOPICS
ABSTRACT
BACKGROUND: Tobacco companies (TCs) offer retailers incentives to advertise their products. Exposure to point-of-sale (POS) advertising is associated with increased smoking experimentation, initiation, and relapse. We sought to explore how TCs and retailers interact to advertise and promote tobacco products at the POS.
METHODS: We conducted 30 interviews with small-independent retail store owners/managers in Jakarta who engage with at least one TC representative. Interviewees were asked about their interactions and agreements with TC salespeople and how they make POS tobacco advertising decisions. Translated transcripts were thematically analyzed.
RESULTS: Most retailers described interacting with salespeople from more than one TC regularly (weekly or bi-weekly). Visits by TC salespeople to retailers were mostly described as professional and short; engagement was typically limited to the sale and purchase of tobacco products. Retailers often described having relationships with specific TCs (e.g., purchasing directly from a TC, accepting incentives for advertising products) for many years, however specific TC salespeople assigned to retailers changed frequently. Retailers commonly described receiving cash, free products, or gifts (e.g., lighters, display cases) in exchange for actions like displaying a branded banner or stickers, collecting empty cigarette packs, or prominently displaying specific products. Strict enforcement of agreement terms was not typical, and paperwork was only signed by retailers as proof they received the incentive. Advantages retailers cited for having relationships with TCs included the convenience of purchasing products directly from TC salespeople and sometimes at a slightly cheaper price than wholesalers and the free replacement of expired products.
CONCLUSIONS: TCs engage small-independent retailers in Jakarta with limited time “deals” that are mostly low effort in exchange for small incentives. Notably, TCs are incentivizing retailers to illegally display branded banners outside stores. TCs should be held accountable for incentivizing retailers to illegally advertise tobacco and for exposing consumers to tobacco advertising.