Retail Experience Study 2016 UNDERSTANDING The Adult Tobacco Consumer FOR TRADE USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO CONSUMERS.
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 44 42 37 39 % Employed Full Time 37 % 58 % 39 % 42 % Average Income $ 33K $ 58K $ 28K $ 43K Source: ATCT 12MM ending September 2016
The Adult Tobacco Consumer Interacts With Their Brand Primarily Through Retail/POS 1 Email Retail/POS Direct Mail Direct Mail Email Email Email Email Direct Mail Direct Mail Website Website Website Website Website Retail/POS Retail/POS Email 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 $ 11.73 25 % Compare To: MST 12 $ 10.29 $ 6.95 Of In-Store Transactions Include Tobacco 3 Cigar E-Vapor 13 $ 4.06 7 $ 14.17 Size Of The Average C-Store Transaction 3 1. 2015 Brand Equity Tracking Study ATCT Total AD 21+ 2. 2016 Retail Experience Study ATC 21-64 3. Video Mining 2015 C-Store Megastudy
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 2-3 20% 25% 25% Purchase 4-5 1 in 5 2 in 5 Shop Exclusively At One Store Shop Between 2-3 Stores Source: 2016 Retail Experience Study ATC 21-64
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
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 2-3 15% 33% 20% Purchase 4-5 1 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 21-64 4 Has All Preferred Types
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
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 2-3 20% 25% 25% Purchase 4-5 1 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 21-64 4 Has All Preferred Types
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
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 2-5 1 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 21-64 4 Always Fresh
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
FOR TRADE USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO CONSUMERS. 2016 Altria Group Distribution Company J6820