Lighting up the tobacco fixture Gallaher Ltd Members Hill Brooklands Weybridge Surrey KT13 0QU Tel: 01932 859777 Fax: 01932 832709 Key contacts Sales development director David Glynn-Jones Key Brands Cigarettes · Benson & Hedges Special Filter · Berkeley Superkings · Dorchester · Mayfair King Size · Silk Cut King Size · Sovereign King Size Cigars · Hamlet · Sobranie Cuban Leaf Cigar · King Six Hand Rolling Tobacco · Amber Leaf · Old Holborn · Samson Pipe tobacco · Condor · Mellow Virginia · CLAN The successful launch of Gallaher's Tobacco Rooms in the cash and carry sector demonstrates how hard it is prepared to work to make life easier for its customers, according to sales development director David Glynn-Jones. "The Tobacco Room aims to make it much easier and more efficient for retailers to shop the tobacco fixture in cash and carry depots," explains Glynn-Jones. "This initiative was born out of Gallaher research, which demonstrated that 94% of retailers will not ask for a brand if they can't see it and that 48% will shop elsewhere if a cash and carry is out of stock. "Merchandising is a very important part of Gallaher's commitment to the customer and we are always striving to improve this in support, maintenance and innovation of our equipment. Twenty five per cent of total outlets that have Gallaher equipment generate 44% of volume sales, showing the role merchandising has to play," says Glynn-Jones. In addition, Gallaher is the only tobacco manufacturer to offer the Air Mile schemes to independent retailers. With 40% of the UK tobacco market and leading brands in four sectors, including the UK's number one premium cigarette Benson & Hedges, Gallaher is determined to provide a good deal for retailers. "Gallaher not only provides shoppers with the products they want but supports its retailer customers with practical and profitable advice," says Glynn-Jones, citing the company's recently published The 2000 Tobacco Category Review, which aims to provide a user-friendly analysis of the latest market trends and an understanding of tobacco shoppers, as just one contribution towards helping customers grow their businesses. "Tobacco is an essential part of the retail mix, not only as a profit earner in its own right, but also as a traffic builder," says Glynn-Jones. "The tobacco shopper represents an opportunity to increase both impulse sales and cross purchases for the retail trade." He encourages retailers to review their range regularly to account for category changes, such as the growth of lower-priced cigarettes ­ including Dorchester and last year's fastest growing brand Mayfair. He also points out that 10 pack share is up from 14.1% to 15.7%, and that five and six packs account for almost half of cigar sales in CTNs. Stocking innovative new products, such as the Hamlet miniatures five pack and the Amber Leaf "piece-pack", a new format created to take advantage of cross category smokers, will boost retailer share, says Glynn-Jones. "Space allocation and effective display at point of sale is also important, and keeping well stocked is vital ­ 45% of convenience shoppers will leave the store if the tobacco product they want is not available." Retailers should bear in mind profitable price points. "Premium cigarettes deliver greater profit and account for 46% of retail profit on cigarettes," Glynn-Jones points out, while low priced cigarettes can drive footfall, generating incremental sales of other consumables. They also enjoy the highest share of the tobacco market at 43.8%. An increase in the number of smokers who switch between cigarettes and cigars or RYO also brings greater opportunities for the retailer and Gallaher is determined to help its customers maximise the profit potential across the category. "Gallaher consistently strives to grow the category performance by working closely with our customers," says Glynn-Jones. For a copy of The 2000 Tobacco Category Review, contact your Gallaher representative, or call 01932 859777 {{Z SUPPLEMENTS }}