Smoking Ban on February 9,

Smoking Ban On February 9, 2009, a new ordinance went in to affect in the city of Boston, banning cigarette sales in pharmacies. The ordinance was passed by the Boston Public Health Commission and covers only the city of Boston, not outlying cities. The sale ban is another in a multi-step program in the city to eradicate smoking. There have also been bans on smoking in bars, cigar bars excepted, bans on the sale of cigarettes on college campuses and a ban on the sale of rolling papers anywhere in the city.

Effect on Tobacco Sales The regulation singles out pharmacies for the ban, under the theory that pharmacies represent part of the health care system and therefore should not be selling a product that damages people's health. Pharmacies account for 4% of total sales of tobacco products (Magee, 2008). This is against the will of the vast majority of pharmacists. However, the major corporations that run the pharmacies, CVS and Walgreen's, generate substantial profit from the sale of cigarettes.

The total market is $65 billion, so the take of the pharmacies is estimated to be $2.6 billion. Thus, the city of Boston felt that the ban needed to come from their end. A survey of Boston pharmacies on the day the ban went into effect revealed that all had removed their tobacco products. The CVS stores surveyed had replaced their tobacco shelves with Nicorettes and other products designed to help people break their tobacco addictions. At Walgreen's the shelving formerly used for tobacco products merely sat empty.

The CVS stores had signs alerting their customers about the new regulations, to alleviate customer concerns and avoid customer complaints (Smith, 2009). Enforcement of the regulations began right away, but thus far all pharmacies are compliant. The two major chains dominate the pharmacy industry in the city and both agreed all along that they would be compliant. CVS, in fact, had toyed with the idea of halting tobacco sales around the same time that Target ceased tobacco sales in 1996 (Magee, 2008).

Stakeholder Analysis There are several major stakeholders with respect to the Boston ban. These are the tobacco companies, the City of Boston, consumers and the pharmacies. The pharmacies have little control in this situation. They are losing a significant component of their sales. While the pharmacies have been forced to be compliant, they lose a key product and can do little to replace that revenue. When San Francisco implemented a similar ban last year, Walgreen's joined with Philip Morris in a lawsuit against the city.

They contend that they are being discriminated against and that other types of businesses are being favored (Gebhart, 2008). The pharmacies also suffer because they use cigarettes to bring customers into their stores, where those customers purchase other products. This ban creates a loss of that revenue as well (Ibid.). The City of Boston's main objective is to continue its assault on tobacco products, the city approved the new rules unanimously, indicating a strength of conviction among the city's leadership.

The city followed the lead of San Francisco, which banned cigarette sales in pharmacies last year, and similar bans in several Canadian provinces (Ibid.). Although it has not been explicitly stated in Boston, it is known that in San Francisco the ban is a precursor to a much wider ban on cigarette sales in the future (Ibid.) the city of Boston stated promoting health and safety is their primary concern, indicating that they will follow up with more legislation (Hirschkorn & Pinkston, 2009).

For consumers, the law amounts to little more than an inconvenience. A researcher at the Boston University School of Public Health indicated that "This policy is not going to save any lives." (Drug Topics, 2009). With only 4% of tobacco sales taking place at pharmacies, consumers can reasonably be expected to take their business elsewhere, even to pharmacies in locations outside of city limits. For the tobacco companies, the stakes are higher. Philip Morris was a party in the lawsuit that Walgreen's filed in San Francisco.

Both companies launched that lawsuit in response to a threat levied against their businesses. Tobacco companies have in the past several years been curtailed in terms of their marketing efforts. The ban on sales in pharmacies is another example of this. Tobacco Marketing The ban creates new problems for tobacco company marketing. The companies are now being faced with new restrictions on where they are able to sell their product.

The large cigarette displays behind the counter of any given pharmacy are also an important part of the promotional package for most cigarette companies. Furthermore, the ban of tobacco sales on college campuses illustrates a commitment towards limiting access to tobacco products for all young people, not just those who are underage. The ban is the first step in limiting where tobacco products can be sold. What this means for tobacco companies is that their marketing efforts will now need to incorporate information about where to obtain the product.

At present, tobacco companies generally focus their advertising efforts on brand-building, a function of the strong brand loyalty that cigarette brands engender. However, companies must now work to keep their distribution channels intact. They must also be able to communicate to their consumers about these channels, if access to their products are going to be further restricted. Point of purchase marketing is also impacted.

The ubiquitous displays behind the counters of many pharmacies and other tobacco retailers are an important part of the marketing mix for tobacco companies, since they provide a powerful visual stimulus. When Walgreen's left the empty tobacco stands in the wake of the Boston regulations, this can be viewed as a symbolic protest gesture. The marketing remains, even if the sales are banned. However, in time the tobacco companies will need to find new ways of reaching their audience without the exposure they get from their point-of-purchase advertising in pharmacies.

Lastly, the ban that Boston enacted on selling tobacco products on college campuses marks a move towards restricting access to tobacco products, even for of-age young consumers. This ban is the most discouraging for tobacco companies. They now find their capacity to market to impressionable young consumers further curtailed. Again, this ban will also result in a corresponding decrease in point-of-purchase signage as well. Marketers must now replace this access by ensuring that their products are available at locations immediately adjacent to campuses.

They can also shift marketing to publications that are available on campus, which will help them maintain interest in the marketplace in the absence of availability. Conclusions The ban that Boston has put into place on selling tobacco in pharmacies is the next salvo in the war on tobacco. In the short-term, the tobacco companies will need to work on the distribution component.