Retail Experience Study 2016 UNDERSTANDING. The Adult Tobacco Consumer
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1 Retail Experience Study 2016 UNDERSTANDING The Adult Tobacco Consumer FOR TRADE USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO CONSUMERS.
2 KEY DEMOGRAPHICS Of The Adult Tobacco Consumers By Category Cigarette Moist Smokeless Large Mass Cigar E-Vapor Estimated Number of Consumers (Past 7 Days) 38 MM 5 MM 3 MM 7 MM Gender 52:48 Male:Female 93:7 Male:Female 77:23 Male:Female 61:39 Male:Female Average Age % Employed Full Time 37 % 58 % 39 % 42 % Average Income $ 33K $ 58K $ 28K $ 43K Source: ATCT 12MM ending September 2016
3 The Adult Tobacco Consumer Interacts With Their Brand Primarily Through Retail/POS 1 Retail/POS Direct Mail Direct Mail Direct Mail Direct Mail Website Website Website Website Website Retail/POS Retail/POS Retail/POS/ Event Event Event Event Retail/POS Retail/POS Retail/POS 2/4 Always/Frequently Seek Information On Price & Special Offers 2 1/4 Always/Frequently Seek Information On New Items 2 When They Visit A C-Store Trips/Monthly 2 Avg Spent/Trip 3 Cigarette 13 $ % Compare To: MST 12 $ $ 6.95 Of In-Store Transactions Include Tobacco 3 Cigar E-Vapor 13 $ $ Size Of The Average C-Store Transaction Brand Equity Tracking Study ATCT Total AD Retail Experience Study ATC Video Mining 2015 C-Store Megastudy
4 UNDERSTANDING The Adult Cigarette Consumer Routinized & Frequent Shopping Patterns Know Which Brand They Will Buy, Regardless Of Deals Offered On Other Brands 86 % 76% Know Which Packing Of Their Brand They Will Buy Regardless Of Other Deals Purchase Every Day Purchase % 25% 25% Purchase in 5 2 in 5 Shop Exclusively At One Store Shop Between 2-3 Stores Source: 2016 Retail Experience Study ATC 21-64
5 Store Selection Heavily Influenced By Expectations Top Requirements When Shopping ping For Their Regular Brand : Good Prices, Always In-Stock, Always Fresh, Special Offers, and Convenient Location Reasons For Switching Store (Extremely Or Very Likely): Better Prices 3/4 On Their Regular Brand 2/3 1/2 1/2 Special Offers In-Stock Guarantees Valuable Customers Who Often Buy Other Items Average In-Store Transaction Size 1 : Fresh Product And A Rewards Program 3/5 Will Leave Store If Their Regular Brand Is Out-Of-Stock 1/2 Of Trips Include Purchases Of Non-Tobacco Items: Fill-In Trips The Other Half Include Only Tobacco And Are Designated Mission Trips Fill-In Trips: $13.48 Mission Trips: $9.64 (Average C-Store Transaction: $6.95) Customers Spend $12.31 Per Trip On Average. 80% More Than The Average C-Store Shopper. Attracting 1 New Marlboro Customer Could Result In $1,920 New Annual Sales. 1. Video Mining 2015 C-Store Megastudy All Other: 2016 Retail Experience Study ATC 21-64
6 UNDERSTANDING The Adult Moist Smokeless Tobacco Consumer Routinized & Frequent Shopping Patterns 78 % Know Which Brand They Will Buy, Regardless Of Deals Offered On Other Brands 68 % Know Which Packing Of Their Brand They Will Buy Regardless Of Other Deals Purchase Every Day Purchase % 33% 20% Purchase in 5 3 in 5 Shop Exclusively At One Store Shop Between 2-3 Stores Store Selection Heavily Influenced by Expectations Top Requirements When Shopping For Their Regular Brand Always In-Stock 1 2 Always Fresh Special Offers 5 3 Good Prices Source: 2016 Retail Experience Study ATC Has All Preferred Types
7 Reasons For Switching Store (Extremely Or Very Likely): 3/4 Better Prices On Their Regular Brand 3/4 3/5 In-Stock Guarantees Special Offers 3/5 Will Leave Store If Their Regular Brand Is Out-Of-Stock 3/5 Guarantee Of Fresh Product Valuable Customers Who Often Buy Other Items Average In-Store Transaction Size 1 : 1/2 Of Trips Include Purchases Of Non-Tobacco Items: Fill-In Trips ~40% Include Only Tobacco And Are Designated Mission Trips The Rest Of These Are Multi-Tobacco Purchases Fill-In Trips: $12.10 Mission Trips: $7.75 (Average C-Store Transaction: $6.95) Customers Spend $11.10 Per Trip On Average Customers Spend $10.80 Per Trip On Average Attracting 1 New Copenhagen Or Skoal Customer Could Result In Roughly $1,600 New Annual Sales. 1. Video Mining 2015 C-Store Megastudy All Other: 2016 Retail Experience Study ATC 21-64
8 UNDERSTANDING The Adult Large Mass Cigar Consumer Routinized & Frequent Shopping Patterns 69 % Know Which Brand They Will Buy, Regardless Of Deals Offered On Other Brands 52% Know Which Packing Of Their Brand They Will Buy Regardless Of Other Deals Purchase Every Day Purchase % 25% 25% Purchase in 6 1 in 2 Shop Exclusively At One Store Shop Between 2-3 Stores Store Selection Heavily Influenced by Expectations Top Requirements When Shopping For Their Regular Brand Always In-Stock 1 2 Always Fresh Special Offers 5 3 Good Prices Source: 2016 Retail Experience Study ATC Has All Preferred Types
9 Reasons For Switching Store (Extremely Or Very Likely): 3/4 Better Prices On Their Regular Brand 3/4 2/3 In-Stock Guarantees Special Offers 2/5 Will Leave Store If Their Regular Brand Is Out-Of-Stock 3/5 A Rewards Program Valuable Customers Who Often Buy Other Items Average In-Store Transaction action Size 1 : 40% Of Trips Include Purchases Of Non-Tobacco Items: Fill-In Trips 51% Include Only Tobacco And Are Designated Mission Trips 9% Of These Are Multi-Tobacco Purchases Fill-In Ti Trips: $ $6.30 Mission i Trips: $ $2.24 (Average C-Store Transaction: $6.95) Customers Spend $4.09 Per Trip On Average. 40% Of Their Purchase Comes From Non-Tobacco Items. Attracting 1 New Black & Mild Customer Could Result In $630 New Annual Sales. 1. Video Mining 2015 C-Store Megastudy All Other: 2016 Retail Experience Study ATC 21-64
10 UNDERSTANDING The Adult E-Vapor Consumer Routinized & Frequent Shopping Patterns 61 % Know K Which Brand They Will Buy, Regardless R Of Deals Offered On Other Brands 39% 3 Know Which Packing Of Their Brand They Will Buy Regardless Of Other Deals Purchase Every Day Purchase Once/Week 10% 20% 20% Purchase in 2 1 in 3 Shop Exclusively At One Store Shop Between 2-3 Stores Store Selection Heavily Influenced by Expectations Top Requirements When Shopping For Their Regular Brand Good Prices 1 2 Always In-Stock Wide Assortment 5 3 Has All Preferred Types Source: 2016 Retail Experience Study ATC Always Fresh
11 Reasons For Switching Store (Extremely Or Very Likely): 3/5 Better Prices On Their Regular Brand 3/5 1/2 1/2 Special Offers Fresh Product Better Selection 1/2 Will Leave Store If Their Regular Brand Is Out-Of-Stock Valuable Customers Who Often Buy Other Items Average In-Store Transaction Size 1 : 45% Of Trips Include Purchases Of Non-Tobacco Items: Fill-In Trips The Rest Include Only Tobacco And Are Designated Mission Trips 10% Of These Are Multi-Tobacco Purchases Fill-In Trips: $16.17 Mission Trips: $12.31 (Average C-Store Transaction: $6.95) Customers Spend $11.39 Per Trip On Average. 63% More Than The Average C-Store Shopper. Attracting 1 New MarkTen Customer Could Result In $945 New Annual Sales. 1. Video Mining 2015 C-Store Megastudy All Other: 2016 Retail Experience Study ATC 21-64
12 FOR TRADE USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO CONSUMERS Altria Group Distribution Company J6820
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