The world of electronic cigarettes has truly been able to accelerate beyond past projections and expectations in a way that many consumers and critics alike would have never thought was even possible. As time goes on, it seems as if more and more people are becoming interested in being able to invest in this healthier alternative to nicotine and tobacco products that used to be the cornerstone of this industry for centuries. As an effective way to remain competitive and relevant within this revolutionary market, many Big Tobacco companies (such as Reynolds American) have had to make slight adjustments in their own investment and acquisition plan.
A Basic Overview
Reynolds American has been able to build a solid record for themselves over the years, growing into one of the largest tobacco makers in the United States. Not only is Reynolds American the parent company of RJ Reynolds Tobacco Company and several other major companies, it is also home to quite a few of the most popular traditional cigarette brands in the country.
Instead of sticking to exclusively selling traditional cigarettes (which has basically been the standard bread-and-butter of this company), Reynolds American has also made quite a few substantial moves and used some strategic business methods that have made it easy for them to make the most out of the electronic cigarettes industry.
Allowing Vuse to Stand Out
One of the biggest goals and target objectives of Reynolds American in recent years has been to take their electronic cigarette (Vuse) to new levels in order to gain an edge on the competition. There are quite a few other electronic cigarettes that have been developed and distributed by their competing brands and manufacturers. The key, though, is being able to find a way to successfully develop and improve the design of the Vuse in an affordable way.
Many other brands have had to sacrifice a substantial amount of their annual revenue just to pay the cost of goods that are sold, which leads to a major dent in their profit margin. However, after a series of case studies and trial experiments were conducted, they have found the secret formula that should lead to monumental success.
It All Starts with a Microchip
Reynolds American has revolutionized the market by introducing a microchip into their Vuse electronic cigarettes. This company has been able to integrate microchips in the power unit as well as the actual cartridge of the device itself. Doing so allows them to be able to provide their customers with a high-quality experience with every single cigarette, making sure that every single puff is just as good and satisfying as the very first one. At the current moment, Reynolds American is focused on expanding this market throughout United States – especially within the state of Colorado. However, they continue to strive to eventually become the top choice for the average smoker.
- Reynolds American (RAI) was able to report net sales of over $8 billion; this is an impressive figure overall but it is a slight decline from their 2011 sales
- Cigarette volumes actually declined by over 5 percent for the company in general, but this was a clear sign of more consumers either deciding to quit smoking all together or at least choosing electronic cigarettes as a healthier alternative and more efficient investment
- Reynolds American sells quite a few of the 10 best-selling cigarettes that are still being sold in the United States; it is the goal of the company to expand their reach into the electronic cigarettes industry in order to appeal to more customers and increase their revenue substantially in the years to come – especially with the revolutionary changes that have been made to their Vuse products.