The industry of electronic cigarettes has truly taken the world by storm in more ways than could ever have been imagined in the past. Millions of people have decided to invest in these healthier alternatives to cigarette and tobacco smoking in recent years. There have been quite a few new brands and manufacturers introduced into this emerging market that have made a significant impact in one way or another – creating an automatic edge within the competition that has forced traditional cigarette companies and corporations (such as Lorillard) to go back to the drawing board.
These traditional companies are still able to make a substantial amount of money from their ordinary sales of traditional cigarettes (especially since the consumer demand for regular cigarettes is still astronomically high.) However, Lorillard has still been able to make several strategic moves that have allowed them to establish a competitive edge in the world of electronic cigarettes as well.
A Brief Overview of Lorillard, Inc.
Lorillard has been able to develop its brand and expand over the years to becoming the third largest brand and manufacturer of traditional cigarettes within the United States. This is primarily because this company has been around since the mid-1700s and has been able to feature some of the most popular names within their expanding line of products – Maverick, True, Kent, Old Gold and Newport. Within this extensive line of products, there are several different offerings that vary on taste, price, length, flavor and overall packaging.
A Basic Report of Annual Sales
By the end of 2012, Lorillard had been able to ship over 40.2 billion cigarettes throughout the United States and its territories – leading to well over $6.6 billion in net sales as well as an overall net income of over $1 billion. They have been able to develop and maintain their competitive edge within this particular industry by producing a vast collection of premium as well as discount cigarettes within a growing market that may seem to be oversaturated.
Ever since the pricing of traditional cigarettes skyrocketed in general, many people may have thought that premium brands would suffer but they have actually grown in popularity as a result of this price increase – which is one of the reasons why Lorillard has been able to maintain such a high ranking within this industry. Offering premium cigarettes for higher retail prices might seem like a bad idea or an ineffective business model, but companies and brands like Lorillard have been able to prove that this is not the case at all.
A Whole New Chapter for Lorillard
It may have seemed that Lorillard would have stayed within the realm of traditional cigarettes, especially since they have been able to achieve such a successful track record in this particular industry. However, they clearly saw that the popularity of electronic cigarettes has increased astronomically within the past few years alone and decided to make a major move that would allow them to take full advantage of this emerging opportunity.
In April of 2012, Lorillard acquired Blu Cigs, a leading electronic cigarette brand, and have been able to grow this particular company into the leading brand of electronic cigarettes within the United States. This is primarily because of their strategic marketing methods of using celebrity spokespeople to actively promote their products in real life as well as in commercials and online advertisements. Back when they first purchased this company for $135 million, it was actually noticed as the very first time that a brand from the world of Big Tobacco ventured out into the expanding market of electronic cigarettes. Therefore, even though they were met with a lot of opposition and criticism, Lorillard has clearly proven over the past year that this was one of the best move that could have been made.