TOBACCO: DAVIDOFF
with the GTR WSC Traveller Limited Edition and the GTR Limited Edition Davidoff Robusto Especiales 7. We will definitely see more of
these GTR exclusives entering our stores in the near future. Also, interactive promotions have become increasingly important. These promotional opportunities are a great way to engage with consumers, showcase current assortments and highlight new products. I will provide an example; at
the beginning of the year, with the focus on the Winston Churchill Assortment, we hosted an experiential promotion at Frankfurt Airport with various interactive points of action focusing on cigar tastes and spirit pairings. We saw the very positive consumer
engagement translate to a growth increase in sales for the WSC line of 30% compared to the same period in the previous year.
Tobacco remains a highly regulated sector, but we’ve seen cigars offered more leniency, particularly at EU level, when it comes to the often onerous conditions put on cigarette manufacturers from packaging to display. Have you seen this change for cigars in recent months to align with tobacco? Please provide any update you have on new legislation/ regulation. In some regions where Davidoff operates, we have seen the legislation for cigars become more stringent. Of course, this creates complexities in how to manage product visibility from a purely aesthetic perspective. However, our brands have not experienced any negative impact to date.
What challenges are you facing in 2019? As travel frequency increases, passengers are becoming more aware of the offers and pricing of products across airport locations. Thus, there is a need for differentiation and more innovation in terms of exclusive
OCTOBER 2019
product offers as well as services. Ultimately, in our view, it needs to be about more than only price. Other challenges include the tobacco advertising bans in certain countries which limit the ability to activate locations via promotion or direct consumer communication. To meet these challenges, we will
focus on optimising our portfolio to the passenger demographics, buying patterns
and
needs. And most importantly, another focus area is and remains staff education
the
through our training program, ‘Davidoff
Academy’, in order to ensure the best passenger and consumer journey.
What are your goals for the rest of 2019 and beyond? This year our company has been focusing on reflecting and assessing the global travel retail strategy. As we work to develop and implement this alongside our retail partners and across our points of sale, we expect to see a strong strategic shift in our operations. We will continue to delight consumers with exciting new innovative products. We will continue to stay closely connected to our teams and staff at the point of sale, focusing and enhancing the ‘Davidoff Academy’ as a core tool for our retailers.
How are you working to make cigars more appealing to the likes of millennials and digitally- engaged travellers? Our global brand team has been working hard on targeted visuals, which entice and intrigue consumers. The ‘Taste The Elements’ campaign for the Discovery line re-launch is a great example. The new products Davidoff introduces to the market are also driven to entice new trials and sampling to attract new consumers that are interested in exploring new aromas and taste experiences.
Can you provide some insight into your DF/TR plans for the coming months? Further to the exclusive and limited GTR Editions launched in the first half of this year – namely the Davidoff Especiales 7 and the Davidoff Winston Churchill The Traveller Limited Edition – we will now focus on the gifting season, introducing gift selections and for the year closing, the ‘Year of the…’ Limited Edition to celebrate Chinese new year. «
Left: One of two AVO Regional limited editions for 2019.
“As travel frequency increases, passengers are becoming more aware of the offers and pricing of products across airport locations. Thus, there is a need for differentiation and more innovation in terms of exclusive product offers as well as services.”
Jean-Christophe Hollay, Davidoff
Davidoff’s limited editions and GTR exclusives have driven double-digit growth in Asia. TRBUSINESS 109
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