Cigarette Market Research 2008

8/14/2019 Cigarette Market Research 2008

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CIGARETTE MARKET 2008

RUSSIA

ALLIANCE MAJOR

SOUTH FEDERAL DISTRICT

research by


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ALLIANCE MAJORALLIANCE MAJOR

GENERAL

MARKETPERFORMANCERUSSIA


4/23


CONSUMER BASE*

MALE

FEMALE

31%31%

6565%%

MALE &FEMALE

46%46%

* data of Rospotrebnadzor, early 2008


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early start of consumption*

* data of Rospotrebnadzor, early 2008

80%ofmen

and50%ofwomenstarted to smoke

before they were18


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RUSSIAN CIGARETTE MARKET

MATUREgrowing inVALUEfaster than in VOLUME

SATURATEDshowing distinctOVERPRODUCTION


7/23ALLIANCE MAJORALLIANCE MAJOR

KEY

MARKETTRENDS2008



SLOW-DOWN of

INCOME GROWTHdriven by global financial crisis

- slower uptrade (youngconsumers) or evendowntrade (elderconsumers)

- reducingconsumptionfrequency/volume



WHO FCTCaccessioned by Russiain 2008

- heavier controlover advertising

and sales

- higher excises

- training of anti-smoking publicopinion



HEALTH & WELLNESSgetting increasingly popular in Russia

- increasingly highpopularity of super lightofferings

especially among young female consumers

- amplified impact of anti-tobacco social programs

- alleviating of smokingtakeup influence factors suchas peer pressure, parental smokingand advertising



HOWEVER, IMPORTANTPSYCHOLOGICAL ASPECTSofSMOKING

- anti-stress

- indulging

make it a lasting habit hard to quit



CONSUMER

PREFERENCES

in South Federal Districtof Russia



PURCHASE REGISTER*

* representative sample; details on sample size, geography andregister methodology available on request

wave 1held inMARCH 2008

covered CONVENIENCE RETAIL(kiosks, independent stores, etc)

wave 2

held inAUGUST 2008

covered RETAIL CHAINS(supermarkets)

THE REVIEW IS BASED ON



male

59% female

41%

GENDER / AGE*

0%

20%

40%

60%

80%

100%

16-

20

21-

25

26-

30

31-

35

36-

40

41-

45

46-

50

51-

55

56-

60

61-

65

66-

70

71-

75

over75

age groups

male female

* total sample wave 1; deviations in wave 2 insignificant



AGE GROUPS*


0% 3% 6% 9% 12% 15%

over 75

71-75

66-70

61-65

56-60

51-55

46-50

41-45

36-40

31-35

26-30

21-25

16-20

agegroups



CIGARETTE TYPES*


0%

20%

40%

60%

80%

100%

16-

20

21-

25

26-

30

31-

35

36-

40

41-

45

46-

50

51-

55

56-

60

61-

65

66-

70

71-

75

over75

age groups

super lights lights full flavor

lights

26%

super

lights

46%full flavor

28%



CIGARETTE TYPES*

* wave 1; deviations in wave 2 insignificant

male smokers

full flavor33%

super

lights38%

lights

29%

female smokers

lights

22%

super lights

56%

full flavor

22%



PRICE CATEGORIES

convenience

retail

above

premium

22%

value

19%

medium

32%

low filter

5%

non filter

2%

premium

20%

supermarket chains

value

10%

above

premium

33%

premium

20%

non filter

0,4%

low filter2%

medium

35%



PRICE CATEGORIES*

0% 20% 40% 60% 80% 100%

16-20

21-25

26-30

31-35

36-40

41-45

46-50

51-55

56-60

61-65

66-70

71-75

over 75

age

groups

non filter low filter

value medium

premium above premium

* total sample wave 1;deviations in wave 2 mainly relate tovalue and super premium segmentshowever general trend is the same



KEYOPERATORS*

KT&G

1%

IT/ Reemtsma3%

Donskoj

Tabak

5%

BAT

28%

Gallaher/ JTI12%

JTI

28%

Philip Morris

31%

* total sample wave 2;deviations in wave 1 relate to larger shares

ofGallaher and Donskoj Tabakwith correspondinglysmaller shares ofPhilip Morris,JTI and BAT



12%

8%

6% 6% 6% 5% 5% 5%3%

3% 2% 2% 2% 2% 2% 1% 1%

9%

21%

0%

5%

10%

15%

20%

25%

Winston

Kent

Parliament

M

arlboro

Vogue

Chesterfield

Virginia

PallMall

Bond

Alliance

Glamour

DonskojTabak

Muratti

LD

LM

ZolotajaJava

21Vek

RusskijStil

other(17

brands)

KEY BRANDS*

* total sample wave 2;deviations in wave 1 relate to smaller shares of abovepremium, premium and some medium brands (mainly Winston)with respectively larger shares of value, low filter and most of medium brands



CHANGE OF CONSUMPTION PATTERN

earlier smoking startup;

even gender distribution ofyoung consumer base (under30) while in senior age groups

male smokers increasinglydominate;

higher popularity ofsuper lightand light cigarettes ofabove

premium, premium andmedium price categoriesamong young consumers(under 40).



please contact

ALLIANCE MAJORat

[email protected]

www.allianc.ru

CREDITSall wonderful pictures are taken

from Flickr.com

great thanks to the artists and their models

FOR MORE DETAILS ON THIS RESEARCH PROJECT

Documents

Cigarette Market Research 2008