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1、the online cigar industrygrandhi suman hou yanqiu, kadekuzhi anand, keller debby kini dinesh online cigar industry2industry overview customers bought cigars through mail order , 800 numbers, stores and clubs. growth of cigar industry 1994 14%- 1995 31 % 1996 67%- 1997 30 % has been declining since 1
2、998.cbs marketwatchonline cigar industry3major playerscleading online retailer. recently purchased .jr cigaronline/traditional retailer. publicly traded.sonline retailer. conline retailer. conline retailer.sonline retailer.it is hard to distinguish between sites. there does not appear to be any esta
3、blished market leader.online cigar industry4a sample front ponline cigar industry5basic strategy typical b2c shopping sites. revenues are made mostly through sale of cigars and accessories. little or no revenue from other streams. customers select products and add them to the shopping carts. consume
4、rs provide credit card information and shipping options. cigars are delivered to the customer at the specified address. online cigar industry6cigar accessories catalogonline cigar industry7customers customers are typically active cigar smokers, varied age groups, upper and upper-middle class profess
5、ionals, both men and women whose time is saved by shopping online. customers also include people/corporations who buy cigars as luxury gifts. customers are very brand conscious. customers are also likely to buy accessories such as humidors, lighters, leather cases etc. customers are likely to have a
6、ccess to technology needed to shop over the internet.online cigar industry8strategies to attract customers novice offer sampler sets not usually found in retail stores offer recommendations ratings of cigars by quality and price detail explanations of flavor, smoothness, and character. cigar connois
7、seurs easy search for specific types and brands of cigars offer boxed setsonline cigar industry9strategies to attract customers everyone online advertising. sell other cigar related goods: humidors, cutters etc have specials: free shipping, gift certificates affiliate programs (7% commission, 7c/cli
8、ck at )online cigar industry10value additions the basic value proposition is to permit customers to purchase the best possible products through an easy to use shopping interface. gift certificates special packaging to maintain quality ups tracking customer testimonials communities build own sampler
9、packs. free shipping on orders of $25 or moreonline cigar industry11value additions reviews from experts and other cigars coupon rebates/discounts live inventory information permission marketing “cigar of the month” delivered automatically personalized cigars recommendations for accompaniments such
10、as wines. books, magazines and articles. free email and chat rooms.online cigar industry12strategies to retain customers current online cigar industry websites are very basic and there is tremendous scope for improvement. most websites work on a per-order relationship with their customers with an em
11、phasis on customer service lock-in user by providing personalization and customization. new cigars are tried on recommendations from others. opportunity to build communities and use collaborative filtering techniques to make these recommendations. permission marketing “cigar of the month” gift certi
12、ficates. quick order like 1-click shopping at amazononline cigar industry13c we believe that is the best online cigar retail website recently acquired to become the largest cigar retailer on the internet. provides numerous value added services such as sampler packs, accessories, specials, gift ideas
13、, gift certificates. has affiliate programs. has a membership program which offers additional discounts, monthly samplers etc. caters to wholesalers.online cigar industry14legislation congress is currently trying to ban all mail order and all internet sales of cigars. http:/ the bill is working at e
14、nsuring that cigar retailers may sell cigars to the ultimate consumer only in a direct, face-to-face exchange and may not make sales through vending machines, mail-order sales, or the internet. this bill, if passed, will have a great impact on the entire cigar industry that works on mail orders and
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