Tobacco cigarettes might be declining in sales, but this does not mean that tobacco category has been totally losing. There are smokeless tobacco products that are actually doing well in the market while tobacco cigarettes are intensely attacked from various perspectives.
Rise In Smokeless Tobacco Sales
In the past 5 years, the sales of these products have been observed with a steady rise. The Federal Trade Commission said that from 1998 until 2011, yearly marketing costs for these products increased 210%: $145.5 million in 1998 to $451.7 million in 2011.
There have been proposals to likewise tax the smokeless products heavily like traditional cigarettes. The Swedish snus and other dissolvable tobacco are acclaimed by many as less dangerous than cigarettes because of lower nitrosamine contents. With massive sales like V2 cigs acheived ecigs will likely be taxes. For customers v2 does offer a discount though, with discounts from http://www.v2couponcodes.com you can save on every order when the V2 cigs discount code is used.
Yet, anti-tobacco groups argue that like electronic cigarettes, these products are being used as gateway in using real combustible cigarettes. The legislators are pushing all possible means to keep these tobacco products away from the hands of youth. In NYC, for example, the buying age was proposed to increase from 18 to 21.
Opening Doors For New Business Opportunity
Due to the strict and heavy regulations set upon traditional tobacco cigarettes, smokers are expected to sample other options. Many of these smokers have already transitioned to electronic cigarettes, while others look for other similar products that are considered safer.
Stores that are losing sales from tobacco cigarettes could consider offering alternatives to smokers. There are overlapping tobacco segments that retailers could target, said Matthew Paduano who is the category management vice president for Nice N Easy Grocery Shoppes Inc. that operates 86 stores in NY. These segments he is pointing to are cigars and moist snuff.
Paduano further stated that the usage and sales of these alternative products are projected by analysts to boost. Comparing the categories of snuff, cigars and cigarettes, he said that snuff is one that is soaring in sales and in sold units.
In fact, they have actually observed that snuff sales have been increasing as more companies are banning smoking in buildings and in facilities. Snuff seems to be a logical choice for smokers.
Paduano said that snuff users are also great customers because each time they enter the store several times a week, they would purchase up to two cans of the product. He added that they prioritize expanding product offerings for these customers and gave them aggressive pricing.
Paduano’s company, Nice N Easy is competing with Native American reservations throughout the upstate NY. It has already maxed out all possible efforts that will draw smokers into their stores.
He said that there is nothing more they can do with cigarettes considering the ever increasing taxation and competitive disadvantages with Indians and increased prohibitions. The only solution for them is to focus on snuff, electronic cigarettes and other alternatives to cigarettes.
No Smoke Zone Products
Smoking customers are the life of convenience stores so they would naturally not want to lose them. Lou Maiellano, Taz Marketing & Consulting Group president said that stores now need to tell smokers who cannot smoke in workplaces and in planes that there are products still available for them.
He suggests creating a specific section in the store, a display section or shelf that will hold about 6 tobacco alternative products like snuff, tobacco pellets, nicotine gum, nicotine gel and strips.
He said that there are actually many viable products in the market that eventually failed because these products were never given a home in tobacco shops and convenience stores. These products would flourish if they will be provided their own place in the store.
With dedicated spaces in the shops, customers would have a clear view of what alternative products they can purchase. Thus, even if the store losses on cigarette sales, it can still cover these losses through sales from alternative products.