The Wells Fargo report is a comprehensive look at the tobacco trends in America. The analysis includes electronic cigarettes, which have grown exponentially over recent years and are now officially on many store shelves.
In this study, senior analyst Bonnie Herzog discusses what consumers want from their vaping experience and how retailers can cater to those needs with effective marketing strategies for sales growth and customer engagement.
Electronic Cigarette Education Summit
The electronic cigarette industry is snowballing, with new products and marketing strategies popping up. So far, there are three main ways to market e-cigarettes: through traditional retail stores, online retailers, and direct sales from the manufacturer. Each of these channels has its strengths and weaknesses.
Brick and Mortar locations
Traditional retail stores are a great way to reach many consumers at once. They provide a familiar shopping experience for customers, and most major brands have brick-and-mortar locations.
However, traditional retail stores can be expensive to set up and operate, so manufacturers need to charge high prices for their products to cover costs. This can make it difficult for smaller brands or independent retailers to compete against the big players.
Online Vape Stores
Online retailers offer a more cost-effective way to reach consumers than traditional retail stores. They don’t require any physical infrastructure beyond a website or an online storefront, so they’re much cheaper for manufacturers to work with.
The downside is that online vape shoppers are often more price-sensitive than shoppers in physical stores; if vape mods are too expensive on an individual level, people will be less likely to buy them outright.
Direct sales from the manufacturer circumvent both of these issues; because no intermediary is taking a cut of profits, manufacturers can sell their products at lower prices without sacrificing profitability. Additionally, this approach allows companies more control over how their products are marketed and sold.
One successful marketing strategy for e-cigarettes is using celebrity endorsements. Celebrities can help increase awareness and recognition for a product or service, which is why they are often used in advertising campaigns.
A few notable examples include Leonardo DiCaprio promoting vaping company Nicoventures Holdings Ltd., and Stephen Dorff promoting Blu Cigs (a subsidiary of Lorillard Tobacco Company). Using celebrities as brand ambassadors can be very effective because people tend to trust what their favourite celebrities say or do.
Another successful marketing strategy for electronic cigarettes is providing product samples to potential customers. This allows people to try out the product before making a purchase decision, which can lead to more sales conversions.
Sampling also helps create word-of-mouth buzz about the product, which can be beneficial for increasing brand awareness and generating new customers. E-cigarette companies such as V2 regularly offer free samples on their website or through other promotional channels like social media.
In order to be successful, electronic cigarette companies need to find creative ways to market their products so that more people become aware of them and consider trying them out