As retailers from nearly 7,500 stores and 55 store chains were surveyed and asked to rate the state of major tobacco corporations on a scale from 1 to 10, Reynolds American Inc. was rated between its major rivals. Scoring 7.1 points, Reynolds fell behind PM USA (which scored 7.24 points) but inched out Lorillard that scored a 6.56.

According to the repost, Marlboro, the nation’ s number one cigarette brand, was expected to obtain the most market share by 47% of respondents, however it was also selected by 41% as facing some negative pressure.

As regards Reynolds’ leading brand, Camel, it was selected by fewest respondents (21%) to obtain most share of the market this year, but was selected by fewest respondents (24%) as facing negative pressure.

Retailers’ comments varied from “Camel is not popular in my market” to “Camel is growing my market.”

Last week Reynolds American held second-quarter earnings conference, where CEO Daniel Delen admitted that Camel’s performance during the three months to July was unchanged at 7.8%, with its Menthol styles being key products. Camel Menthol market share gained 0.3 points in the Q2 to total 2.1%.

Besides Camel which is selling in the premium segment, RAI offers Pall Mall in mid-value segment (marketed by RJ Reynolds) and Natural American Spirit in the super-premium segment (marketed by Santa Fe Natural Tobacco). Retailers’ feedback on these products comprised “Natural American Spirit keeps growing” and “Pall Mall is a growth leader.”

Pall Mall gained 1.5 points in market share during the second quarter to reach 8.5%. Delen confirmed that Santa Fe Natural Tobacco showed strong performance, achieving volume and earnings increase.

David Howard, senior spokesman for RAI commenting on the retailers’ survey said that the company has been decreasing its marketing support of private-label brands during several years, and that they made up an insignificant business in terms of market share. He added that the company decided to concentrate is productivity and marketing efforts on Pall Mall and Camel what resulted in continuous growth posted by both brands.

The company has also consolidated the sales performance of American Snuff Company and R.J. Reynolds, that could have resulted in some difficulties as that consolidated sales performance has been developing. However, at presented moment the efforts to consolidate sales force led to increased strength of both companies and more integral communication between sales reps and retailers.

Howard refused to comment on the company’s marketing strategy but said that the company has been focused on wise promotional efforts, through communication with adult consumers and retailers.

By Clark Moore, Staff Writer Copyright © 2011 Hot-Cigs.com All rights reserved.