Canadian Tobacco Laws Create Merchandising Challenges

If you think American restrictions pose marketing challenges for tobacco makers, take a quick trip to Canada. Bill C-71, enacted in 1997 and later amended further, outlaws all self-service units. It also bans displays that depict tobacco products, packaging or brand elements, such as brand names, trademarks, logos or graphics. The only allowable distinguishing element for each company's products on a display is a signature color."It is getting tougher all the time to merchandise products," says Andrew Martin, merchandising coordinator for Imperial Tobacco Ltd., Montreal. "Especially since there are additional regulations at the provincial level."The key to success, he says, is to create flexibility for displays to ensure each can accept as many brands as possible, regardless of shape or size. "If you can create components that adapt to all your different brands, it's a win for everybody and helps manage your costs more effectively." Canadian manufacturers focus on locking countertop displays, using a generic display design that allows the package to project the brand's image. The companies use merchandisers with live stock, because only the product can carry the brand image, along with paper inserts beside the packs in the display. Because of this, back-wall merchandisers focus on packs rather than cartons as American displays often do. The packs often are wider than American versions, creating a more visible facing. Securing counter space is critical, he says, since no brand signs can be used except on the package. "Once you get taken off the counter, you want to get back as quickly as possible, but there's usually someone else there."A recent display the company produced, with Admark Advertising & Display Ltd., Scarborough, Ontario, indicates the flexibility that the company strives to create. The line of semipermanent counter displays features metal bases that support four tiers of plastic product trays. The trays have transparent pocket holders that adapt to eight different pack sizes, allowing the display to be restocked with different brands as needed. The generic nature of the display works to Imperial's advantage by allowing the display to stay in place as new products are stocked.The idea is to reserve the counter space on a permanent basis to feature different Imperial brands throughout the year. "It's an excellent cost-management approach that keeps the positions straight while allowing retailers to obtain a new display look on a regular basis," Martin says.

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