Convenience store retailers have found initial trial levels of the new Newport Non-Menthol cheap cigarettes to be about average, with much of the initial consumer interest attributed to temporary pricing, according to an exclusive CSP-UBS Tobacco Survey.
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"Most customers buying Newport Non-Menthol don't have a strong loyalty to another brand and are trying them because of the price and the Newport name recognition," one retailer stated. "After the buy down expires Cheap NFL Jerseys Online , only those customers that have developed a loyalty to the smoking brand will continue to buy them."
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Retailers ranked the trial level at an average of 5.1 on a scale of one to 10, according to the survey, which included 108 retailers representing more than 15,000 convenience stores.
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Trial primarily was attributed to the temporary $1.65 buy down Cheap NFL Jerseys Free Shipping , which is set to expire in January. About 76% of respondents said they didn't feel Newport Non-Menthol would sell as well when the buy-down ends.
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The drop will be predicated on the amount of discounting removed and when. If moved in line with other Newport discounting, sales will fall by 66% minimum."
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Lorillard declined to comment on the survey. "We do not comment on future marketing andor promotional plans for any of our brands," a company spokesman said, adding that it is also too soon to comment on how Newport Non-Menthol is doing as it only entered the market in November.
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UBS tobacco analyst Nik Modi Cheap NFL Jerseys Wholesale , however, explained that now was a good time to begin tracking Newport Non-Menthol sales. "While we realize it's still too early to make an ultimate assessment on the success of Newport Non-Menthol, we wanted to pursue this survey in order to create a point of comparison for future surveys."
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A majority (89%) of respondents said Newport Non-Menthol users switched from other brands, with the remaining 11% saying they were new customers. Retailers also ranked expectations of initial repeat levels at a little below average Cheap NFL Jerseys China , at about 4.4 on a scale of one to 10.
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"It appears that it will pull from Pall Mall and some of the low-ends for now," one retailer stated. "It could also pull from Marlboro and Camel, if they keep emphasizing that this is an introductory price on a well-known brand-name extension."
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Most respondents characterized the overall in-store execution of the launch as good (38%) or excellent (16%). "Product was available the day they said it would be; there have been no out-of-stocks or shortages," one retailer said. "The sales have been very strong Cheap NFL Jerseys , which I expected with the deep discount."
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However, not all retailers were happy with the launch, with 30% rating it fair, and 17% rating it as poor: "Some stores struggled to get reps in upon launch. Many stores had advertising placed in unauthorized positions not following instructions agreed to by the account manager."
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An area of optimism for Lorillard is that it newest cigarette appears to be drawing from other non-menthol smoking brands Cheap Jerseys Online , such as Marlboro and Camel, and not from the core users of Newport Menthol. Although 78% percent said Newport Non-Menthol was competing with the core Newport product, 77% said they did not believe Newport Non-Menthol was confusing the core Newport customer. "Most trials are not from menthol customers; it is Marlboro and Camel customers trying it," one retailer said.
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"The good news is that Newport Non-Menthol is largely incremental to the Newport franchise with minimal cross-over consumption Cheap Jerseys Free Shipping ," Modi told CSP Daily News.
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