Magazine article Marketing

Rothmans Undercuts Rivals

Magazine article Marketing

Rothmans Undercuts Rivals

Article excerpt

Rothmans and the Spar grocery chain this week launch new cut price cigarettes -- just as the Health Education Authority (HEA) calls for a 3 pounds price floor for all brands and as a new battle ground opens up between the industry and the health lobby.

Rothmans is undercutting the cheapest economy brands on the market with Royals, a new king size pack of 25 cigarettes priced at 2 pounds (1.60 pounds equivalent for 20) as grocery chain Spar announces a new line of own-brand cigarettes, Sky Superkings, priced at 1.64 pounds.

But the launches come just as health campaigners spread their attack on the tobacco industry to include pricing as well as advetising.

In a sensational report the Health Education Authority says 12 people die from smoking-related illnesses every hour at an annual cost of 437m pounds to the National Health Service and recommends a full frontal attack on the economy sector, especially on price.

"In our research, we discovered that the single most effective way to reduce the level of smoking is to raise price," says an HEA spokesperson. …

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