Wichita Action Plan 1st Half 2010

Ebony Branch Kristen Jones

Jennifer Medley

December 2009

Overview

• Quantitative• Qualitative • Commitments from Team Wichita• Commitments needed from Management

Quantitative

• Product Availability – 3% OOS• Camel Non Menthol – Current YTD SOM 6.35%

»YTD mid 2010 – 6.9%• Snus – YTD mid 2010 - .5% SOM• Camel Menthol – Current YTD SOM 1.26%

» YTD mid 2010 – 2%• Pall Mall – Current YTD 5.49

»YTD mid 2010 – 6%

Qualitative

• Pricing–Contract selling–Margin selling–Pricing advisors–Engagerjrt.com–Price gaps met (packs/cartons)–Email confirmations followed by phone blitz

Qualitative

• Presence–Carton pricing on/off set depending on outlet–Merchandising cartons on set–Primary focus on Camel/Pall Mall–Snus in 1st position –Leading with menthol in outlets with 25%+ SOM–VAP and 99’s communication/POS– Encouragement of retailer communication on outside signage (Snus/Pall Mall)

Qualitative

• Promotions–Speaking about them as “Events”–99’s all time promotions–Adequate quantity – updating promo model–Margin pricing–SKU adjustment based on customer willingness and capabilities

–Analyze in May 2010 as to competitors brand performance in lieu of changes on promotion allocation

–Snus Pulse

Qualitative

• Product–Adequate facings for product based on brand performance (against competitors performance)

–Build to numbers are looked at, reviewed, and adjusted accordingly

–Prebook for special events (promos, pulse, etc,)–Re-evaluation of Snus, NQ, and low CPW outlets

Qualitative

• Personal Selling–CE days – 1st and 3rd Friday of the month starting in February

•Focus: Buckets 1 and 2 •Focus: menthol opportunity

–Focus on daily CE’s – at least 2 quality a day–Kwik Shop Training Program – need to discuss with SKAM Sean Bader –

–QT – Snus give ones and discussion with management around Snus opportunity and helping their bottom line

TM Commitments

• Data Integrity• Improved communication between TM’s as well as

with management• “Wichita City Meeting”

–2nd Thursday of every month –TM’s to be in attendance – management invited once a quarter

• Work with AM once a quarter

Management Commitments

• Conference call – Rob, Heather, and Wichita TM’s – once a quarter to review progress utilizing Hyperion with our discussion.

• AM work with - once a quarter with each TM in Wichita

Keeping it Simple, Bold, and Focused... We will achieve

great results!!