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One outlet operator is trying to negotiate 45-50% shelf deals with both PM and RJR but suspects that neither will budge. "The point of being a tobacco outlet is to have the biggest variety," the operator said. "We have lots of customers that look for brands that convenience stores won''t carry. If we can''t fit them on our shelves because of the contract, then we''ll special order a brand and hold it in the back room for customers who know enough to come up to the counter and ask for them.Perhaps the most radical change in strategy is being executed by Brown & Williamson. Outgunned by rival merchandising programs and pinched by deep-discount cigarettes, the No. 3 tobacco company is selling brands that have been pushed out of stores or relegated to the bottom shelf directly to consumers via phone, fax and mail-order catalogs. Much to the ire of retailers and wholesalers, the newly formed BWT Direct unit has been selling Tareyton, Carlton, Misty, Capri and other hard-to-find brands in nine states since last October. During its nationwide expansion efforts, the company sued the state of New York over a law that banned the sale of cigarettes via the Internet.
Last fall, members of Brown & Williamson''s Lucky Strike Force team sought out passengers banished by municipal smoking laws, warming them up with "Lucky Strike Loves You" cards. The guerrilla strategy told consumers: "We''re the brand that knows what you need. Lucky gets you."Other brands have taken to similar venues where adult smokers gather, as the Master Settlement Agreement has left the industry with fewer outlets at which to reach consumers. The Marlboro Miles loyalty program, which used to reward frequent smokers with tchotchkes like Marlboro caps, jackets and lighters, was later tied to a concert series involving bands like Smash Mouth, Los Lobos and Cheap Trick. montecristodesartsa R.J. Reynolds has a sweeping bar program and direct mail campaign touting Winston''s "No Bull No Boundary" contest, which offers experiences like shark diving and air combat.While the MSA took away the industry''s mass-media crutch, cigarette marketers have been on this road for some time. Lucky Strike, for example, "has a rich heritage of doing the unexpected," including skywriting during the 1940s, said Sharon Smith, the brand''s marketing director.
So where is the rest of the money going? A huge portion--more than $3.5 billion--is being pumped into retail outlets through price promotions and merchandising contracts. And that''s where the tobacco giants are turning up the heat with aggressive--and some say bullying--tactics, to squeeze out rivals."The Big Two are more aggressive about dictating montecristodesartsa what goes on the store shelves," said montecristodesartsa a Southern operator of a tobacco outlet chain." Honestly we used to joke montecristodesartsa about the ''Philip Morris police.'' The Philip Morris reps would come around and wreak havoc on anything that was wrong with the store, or if their market share wasn''t what it should be, or if a competing brand had an extra sign or something. They would just have a fit."Now, R.J. Reynolds is trying to flex its muscles in similar fashion. "I took our Reynolds rep outside recently and showed him the sign on our store," the operator said. montecristodesartsa "I told him montecristodesartsa when R.J. Reynolds'' name is on that sign, then you can tell me what is and what is not going in here and how much I can sell it for."
Searching for a comprehensive listing of all the quality cigars and tobaccos on the market? We carry a varied assortment of the world's finest cigars and all the accessories that will turn your interest of fine tobacco into a bonafide hobby! Click here and see for yourself!
montecristodesartsa
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