company profile 2021
company profile 2021
Were bringing together
responsiveness, design,
loyalty and personalization
to create an overall unique
proposition, which is
more sophisticated and
provides a better consumer
experience
CASSANDRA SMELKO,
DIRECTOR STRATEGY AND
TRANSFORMATION, NORTH AMERICA
HEATHER ZDAN
CHIEF CONSUMER OFFICER
scandinavian tobacco group
Scandinavian Tobacco Groups North America Online & Retail (NAO&R)
Division is tackling headwinds with a modernisation and upgrades
of the online platforms. This has already accounted for a significant
part of the businesss year over year growth, with more to come.
16
Scandinavian Tobacco Groups premium
website for online sales in North America
is now responsive for different types of
devices, making it simpler for people
use on their phones during lunchbreaks,
has a higher end look and feel with more
lifestyle images of people enjoying the
products, a discussion forum with plenty
of cigar-related content and a new loyalty
programme to reward regular customers.
The result is that the site is more
premiumized and high-end, says
Cassandra Smelko, Director Strategy
Transformation, North America. Were
bringing together responsiveness, design,
loyalty and personalization to create
an overall unique proposition, which is
more sophisticated and provides a better
consumer experience.
The overhaul of CIGAR.com is part of the
transformation of Scandinavian Tobacco
Groups US handmade cigar business, to
create new sources of growth in response
to a changing market.
Handmade cigar volumes have been in
a long, slow decline leading up to 2020.
The shift in consumers shopping at
brick-and-mortar to online had stalled
in the category, and competitors have
been pursuing aggressive price policies.
There are also regulatory and compliance
headwinds, such as excise tax, sales tax,
shipping restrictions and adult signature
requirements.
The modernisation of our online
platforms represents the largest
transformation in the history of the
North America Online & Retail Division.
In the first half of 2020 we have pursued
a number of quick wins and initiatives
that lay the foundation for some major,
new consumer programmes and we are
executing according to plan. says Heather
Zdan, Chief Consumer Officer.
MORE PERSONAL, MORE LOYALTY
The aim of this multi-year strategy
initiated in late 2019 which is expected to
be fully implemented by the end of 2021,
is to increase revenue and EBITDA. Each
of the five direct to consumer business
units focused on the handmade category
will have a more distinct look and feel
and a product range, marketing channels,
promotion and loyalty schemes which are
more differentiated.
Four of the business units already exist
Cigars International, Thompson Cigar,
CigarBid, and CIGAR.com. A new business
unit will be introduced with an integrated
social and community focus that also
fosters an ecommerce retail element.
scandinavian tobacco group
A TRANSFORMATION
TO LEAD BUSINESS
GROWTH
I
f you pay a visit to CIGAR.com,
you may notice a few changes
encompassed in the transformation.
Continues
17
OUR MUST- WIN BATTLE STORIES A TRANSFORMATION TO LEAD BUSINESS GROWTH P. 16 HOW TO SELL CIGARS IN A PANDEMIC P. 19 INTEGRATION THE KEY INGREDIENT FOR A SUCCESSFUL ACQUISITION P. 21 KEEP IT SIMPLE P. 24 PLANNING THE UNPLANNABLE P. 26
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company profile 2021 company profile 2021 Were bringing together responsiveness, design, loyalty and personalization to create an overall unique proposition, which is more sophisticated and provides a better consumer experience CASSANDRA SMELKO, DIRECTOR STRATEGY AND TRANSFORMATION, NORTH AMERICA
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SCANDINAVIAN TOBACCO GROUP A/S Sandtoften 9 2820 Gentofte Denmark CVR 31 08 01 85 Make www.st-group.com