In its quest to keep on sales growth of its top-selling Pall Mall brand of cigarettes, RJ Reynolds is releasing the brand new menthol-flavored varieties.
The second-largest tobacco company in the U.S. has introduced Pall Mall White and Pall Mall Black as support version for Pall Mall Green, its iconic menthol style.
Richard Smith, communications manager for RJ Reynolds declared the black style gives smokers “a full-flavor smoke,” while the white style “provides a milder smoke.”
Smith mentioned that the latest are launched in the tobacco shops throughout the nation, with countrywide release planned for October.
In accordance with RJ Reynolds, the latest menthol-flavored styles are released to live up to the changing preferences of adult smokers and make the most of the momentum in the menthol segment of the market.
“We think Pall Mall grew to be the proper product launched at the proper time, due to the fact the tough economy continues to post a negative impact on purchasing capability of adult tobacco consumers,” Smith added.
Demand for menthol-flavored cigarettes have dipped in the previous several years, going down from 27 percent of overall cigarette shipments recorded in 2008, to 22 percent in 2011, as per the market report published by the Federal Trade Commission earlier this month.
“RJ Reynolds seeks to offer its brand new Pall Mall menthol styles to price-sensitive adult consumers, who have to purchase more costly menthol cigarette brands,” admitted Bill Godshall, SmokeFree Pennsylvania director.
RJ Reynolds expects the brand new styles of Pall Mall menthol will help to secure further growth in the sales of Pall Mall brand, which has developed into the nation’s third best-selling cigarette brand, trailing to Marlboro and Newport.
Pall Mall not solely has outstripped the famous Camel brand as Reynolds’ top brand but also lowered Marlboro’s tremendous leadership in the domestic cigarette market.
In an effort to maintain Marlboro’s placement Philip Morris has started an aggressive promotional program for Marlboro Special Blends, its lower-cost style of Marlboro. Other main rivals are also striving to hamper the triumph of Pall Mall by presenting discounts and bargains on their products.
Consequently, Pall Mall shed 0.2 percentage points out of its market share within the second quarter, representing at present 8.4 percent of the overall cigarette market. Its sales volume also dropped by 0.2 percents totaling 5.6 billion cigarettes in comparison the identical period in the previous year.
Nonetheless, it is still a fantastic achievement for Pall Mall, which held only 1.95 percent of the cigarette market until RJ Reynolds gave it a second life by turning Pall Mall into its key growth brand together along Camel in 2006.
Bonnie Herzog, a business expert at Wells Fargo Securities, stated the rivalry between the leading tobacco companies might contribute to a marketing “slaughter.”
“While we consider Pall Mall will retain its popularity among price-conscious consumers, the brand is not safeguarded against marketing pressure from major rivals and, hence, we are expecting a slowdown in its growth,” the analyst said.
Pat Shehan, who owns Tarheel Tobacco retail stores, admitted it is obvious the advertising activities and discount prices are luring adult smokers to such brands as Pall Mall, Marlboro Special Blends and L&M from other the low-cost products.