Price and brand key to success

JPS Players

BRAND loyalty and value are at the heart of a successful tobacco offer in this post-EU TPD2 landscape, with the introduction of standardised packaging and minimum pack sizes marking a fundamental shift for the category.

Cameron Miles, marketing manager at Imperial Tobacco said that since TPD2 came into force, “customers are increasingly looking towards products that offer the best perceived value for money.”

Imperial has suggested that retailers who want to perform in the new climate would do well to shun premium pricing.

Miles explained: “Imperial contends that independent retailers getting their pricing ‘right’ is more important ever in the current climate. We would argue that premium pricing by independents is an ever decreasing circle.”

Kensitas club

• Ross Hennessy of JTI, which saw success through relaunched value brand Kensitas Club in 2018, also flagged  the role of loyalty and price: “In today’s tobacco environment, brand loyalty and value continue to be the key influencing factors behind consumer purchasing decisions.

“Brand loyalty can be seen in the 27% of existing adult smokers who choose to buy elsewhere if their brand is unavailable, while value for money is  evident in the growing demand for Superkings in the ultra-value market,” he said.

Hennessy also echoed Miles on independent store pricing.

“Price continues to play an increasingly important role in the purchasing decisions of existing adult smokers and retailers should  look to remain competitive by selling at RRP or below,” he said.