RUSSIA

SOUTH FEDERAL DISTRICT

CIGARETTE MARKET 2008

research by

ALLIANCE MAJOR
ALLIANCE MAJOR
MARKET RESEARCH COMPANY

SINCE 1994
ROSTOV-ON-DON
SOUTH FD of RUSSIA

www.allianc.ru
alliancm@aaanet.ru

ALLIANCE MAJOR
 GENERAL
MARKET
PERFORMANCE
RUSSIA

ALLIANCE MAJOR
 CONSUMER BASE*

46% MALE &

FEMALE

65%
MALE

31%
FEMALE

* data of Rospotrebnadzor, early 2008

ALLIANCE MAJOR
 early start of consumption*

80% of men
and 50% of women
started to smoke
before they were 18

* data of Rospotrebnadzor, early 2008

ALLIANCE MAJOR
 RUSSIAN CIGARETTE MARKET

MATURE
growing in VALUE faster than in VOLUME

SATURATED
showing distinct OVERPRODUCTION

ALLIANCE MAJOR
 KEY
MARKET
TRENDS
2008

ALLIANCE MAJOR
SLOW-DOWN of
INCOME GROWTH
driven by global financial crisis

- slower uptrade (young

consumers) or even
downtrade (elder
consumers)

- reducing
consumption
frequency/volume

ALLIANCE MAJOR
WHO FCTC
accessioned by Russia
in 2008

- heavier control
over advertising
and sales

- higher excises

- training of anti-
smoking public
opinion

ALLIANCE MAJOR
HEALTH & WELLNESS
getting increasingly popular in Russia

- increasingly high
popularity of super light
offerings
especially among young female consumers

- amplified impact of anti-

tobacco social programs

- alleviating of smoking
takeup influence factors such
as peer pressure, parental smoking
and advertising

ALLIANCE MAJOR
 HOWEVER, IMPORTANT
PSYCHOLOGICAL ASPECTS of SMOKING
- anti-stress
- indulging

make it a lasting habit hard to quit

ALLIANCE MAJOR
 CONSUMER
PREFERENCES

in South Federal District

of Russia

ALLIANCE MAJOR
 THE REVIEW IS BASED ON

PURCHASE REGISTER*
wave 1
held in MARCH 2008

covered CONVENIENCE RETAIL

(kiosks, independent stores, etc)

wave 2
held in AUGUST 2008

covered RETAIL CHAINS

(supermarkets)

* representative sample; details on sample size, geography and

register methodology available on request
ALLIANCE MAJOR
 GENDER / AGE*
male
59% female
41%

male female
100%

80%

60%

40%

20%

0%
16-20

21-25

26-30

31-35

36-40

41-45

46-50

51-55

56-60

61-65

66-70

71-75

over 75
age groups

* total sample wave 1; deviations in wave 2 insignificant

ALLIANCE MAJOR
 AGE GROUPS*
16-20

21-25

26-30

31-35

36-40

age groups
41-45

46-50

51-55

56-60

61-65

66-70

71-75

over 75

0% 3% 6% 9% 12% 15%

* total sample wave 1; deviations in wave 2 insignificant

ALLIANCE MAJOR
 CIGARETTE TYPES*
super
lights full flavor
46% 28%

lights
26%

super lights lights full flavor

100%

80%

60%

40%

20%

0%

41-45
16-20

21-25

26-30

31-35

36-40

46-50

51-55

56-60

61-65

66-70

71-75

over 75
age groups

* total sample wave 1; deviations in wave 2 insignificant

ALLIANCE MAJOR
 CIGARETTE TYPES*
super
lights full flavor
38% 33%

lights
29%

male smokers

super lights full flavor

56% 22%
lights
22%

female smokers

* wave 1; deviations in wave 2 insignificant

ALLIANCE MAJOR
 PRICE CATEGORIES
premium
20% medium
32%

value
19%

above
premium convenience
non filter
22%
2% retail
low filter
5%
premium
20%
medium
35%

above value
premium 10%
33% non filter
0,4%
low filter
supermarket chains 2%
ALLIANCE MAJOR
 PRICE CATEGORIES*
over 75

71-75

66-70

61-65

56-60

age groups
51-55

46-50

41-45

36-40

31-35

26-30

21-25

16-20

0% 20% 40% 60% 80% 100%

* total sample wave 1;

non filter low filter
deviations in wave 2 mainly relate to
value medium
value and super premium segments
however general trend is the same premium above premium
ALLIANCE MAJOR
 KEY
OPERATORS*
Gallaher/ J TI
12%
J TI
28%
BAT
28%
Philip Morris
31%

Donskoj
KT&G
Tabak
1%
5%
IT/ Reemtsma
3%

* total sample wave 2;

deviations in wave 1 relate to larger shares
of Gallaher and Donskoj Tabak with correspondingly
smaller shares of Philip Morris, JTI and BAT ALLIANCE MAJOR
 25%

21%
KEY BRANDS*
20%

15%
12%

10% 9%
8%
6% 6% 6%
5% 5% 5%
5% 3% 3%
2% 2% 2% 2% 2%
1% 1%
0%
Parliament

Donskoj Tabak

other (17 brands)

Bond
Chesterfield
Winston

Glamour
Marlboro
Vogue
Kent

Alliance
Virginia

LM
LD

Russkij Stil
Muratti

21 Vek
Zolotaja J ava
Pall Mall

* total sample wave 2;

deviations in wave 1 relate to smaller shares of above
premium, premium and some medium brands (mainly Winston)
with respectively larger shares of value, low filter and most of medium brands

ALLIANCE MAJOR
CHANGE OF CONSUMPTION PATTERN

earlier smoking startup;

even gender distribution of
young consumer base (under
30) while in senior age groups
male smokers increasingly
dominate;
higher popularity of super light
and light cigarettes of above
premium, premium and
medium price categories
among young consumers
(under 40).

ALLIANCE MAJOR
FOR MORE DETAILS ON THIS RESEARCH PROJECT

please contact
ALLIANCE MAJOR
at
alliancm@aaanet.ru
www.allianc.ru

CREDITS
all wonderful pictures are taken
from Flickr.com
great thanks to the artists and their models

ALLIANCE MAJOR