e-Swisher

Company Background Established in 1924 in Jacksonville, Florida. Largest manufacturer and marketer of cigars in the world. Swisher International Group Inc. produces premium and mass market cigars, little cigars, and various smokeless tobacco products. Two most famous brand names- King Edward, Swisher Sweets. Swisher manufactures its cigars in Jacksonville, and smokeless tobacco products at a smokeless tobacco products facility in Wheeling, West Virginia. Swisher invests millions of dollars in cost effective automation and process improvements. Factory is the largest in the world, in terms of size and production, covering nearly 700,000 square feet. Swisher produces as many as 8.5 million cigars a day.

Competitors: blu Flavors- 7 flavors Price-disposables (4 pack) $39.95; original starter kit $69.95; refill cartridges (5 pack) $12 Distribution- sold online or at more than 12,000 retailers nationwide, both national and regional retail stores Cigarette Life- disposables comparable to 1.5 packs of cigarettes; refill cartridges comparable to 1 (standard cartridge) or 1.5 (premium cartridge) packs of cigarettes; rechargeable pack unique for its internal charge port which conveniently charges your e-cigarette batteries when you're on the go (the blu pack will replenish your batteries up to six times before requiring a full recharge) Key Message- blu cigarettes are a social tool, premium pack even lights up and vibrates when another blu user is within 50 feet Google Search- 3,170,000 results are shown Facebook- 35,501 likes Twitter- 12,747 followers Selling Points- easy to keep up with (rechargeable cigarettes come with a pack similar to traditional cigarettes), can charge while on the go, blue tip instead of orange so people do not confuse it with a traditional cigarette if smoking indoors

Green Smoke

Flavors- 7 flavors Price- disposables (6 pack) $59.99; express kit $89.99; refill cartridges (5 pack) $16.99 Distribution- sold online and at regional retailers Cigarette Life- disposables comparable to 1.5 packs of cigarettes; refill cartridges comparable to 1.5 packs of cigarettes Key Message- The green way to smoke- no pollution or odors, organic feel Google Search- 2,570,000 results are shown Facebook- 3,988 likes Twitter- 3,412 followers

South Beach Smoke Flavors- 10 flavors Price- disposables (4 pack) $39.99, (8 pack) $74.99, (12 pack) $99.99; starter kit $59.99; refill cartridges (15 pack) $39.99 Distribution- sold online and now in stores Cigarette Life- disposables comparable to 2.5 packs of cigarettes Key Message- South Beach Smoke cigarettes are the classy and sophisticated way to smoke while staying healthy Google Search- 29,800,000 results are shown Facebook- 15,080 likes Twitter- 1,357 followers Selling Points- home delivery program gives the customer a discount on starter kits, 20% off refill cartridges, lifetime warranty, and an automatic monthly delivery of supply to customers home.

V2 Flavors- 10 flavors Price- disposables (3 pack) $24.95, (5 pack) $39.95, (10 pack) $74.95; starter kits beginning at $24.95; refill cartridges (5 pack) $9.95 Distribution- sold online and in some stores, V2 is selective and only uses established distributors Cigarette Life- disposables comparable to 2 packs of cigarettes; refill cartridges comparable to 1 pack of cigarettes Key Message- budget friendly and simple for those trying electronic cigarettes for the first time Google Search- 510,000 results are shown Facebook- 1,626 likes Twitter- 6,373 followers Selling Points- appealing to those on a low budget with very basic starter kits as well as less expensive liquid refills for cartridges

Also by VMR Products- VMR Products (makers of V2) also created the Vapor Couture line, stylish and geared towards women

Premium Flavors- 19 flavors; even disposables come in 7 different flavors; also carry electronic cigar Price- one disposable cigarette $9.99; starter kits beginning at $49.95; refill cartridges (5 pack) $12.50 Distribution- sold online and in stores Cigarette Life- disposables equivalent to 500 puffs Key Message- Premium electronic cigarettes can be an accessory and statement piece Google Search- 6,630,000 results are shown Facebook- 2,997 likes Twitter- no twitter account Selling Points- unique, customizable, flashy colorful designs and cases; wide variety of premium flavors

Bull Smoke Flavors- 10 flavors Price- one disposable cigarette $9.95; starter kits beginning at $74.95; refill cartridges (5 pack) $12.95 Distribution- buckshots (disposables), can be stocked in bars, restaurants, and stores, all products available online Cigarette Life- disposable comparable to 450 puffs; each refill cartridge comparable to 25 cigarettes Key Message- Western theme, electronic cigarettes dont have to be so different from traditional; flavor comparisons to traditional cigarette brands Google Search- 4,220,000 results are shown Facebook- 11,097 likes Twitter- 5,260 followers

e-Swisher Flavors- 3 flavors Price- one disposable $?; express kit $19.99; refill cartridges (3 pack) $19.99 Distribution- available at convenient stores but not for purchase online Cigarette Life- disposables and refill cartridges comparable to 2 packs of cigarettes Key Message- choose e-Swisher because it is a product from a trusted brand Google Search- 1,120,000 results shown Facebook- cant find a facebook page Twitter- cant find a twitter account

After analyzing e-Swishers competition, the following must be addressed: Strengths Swisher has been a trusted brand, even before the electronic cigarette era. Swisher has a trusted manufacturing process, assembled, tested and filled in the USA. Swisher carries an electronic cigar, while the majority of the other electronic cigarette companies do not. The electronic cigarette market is rapidly growing. Pricing on starter kits is very affordable.

Weaknesses Swishers electronic cigarettes only come in 3 different flavors, far less than the competition. Swisher does not have a variety of rechargeable packages to choose from in comparison to competition. Swisher does not offer any customer programs that can be found with other brands. Other than the trusted brand name, Swisher does not have a key message or specific draw to their e-Swisher product. Swisher electronic cigarettes cant be ordered online. Swisher does not have a facebook or twitter for their e-Swisher product.

Opportunities Swisher has the opportunity to increase awareness using the well-known brand name. Swisher has the opportunity to appeal to current consumers of other Swisher products and interest them in this new product. Swisher has the opportunity to expand on its electronic cigarette line and create more flavors and packages.

Threats Possible external threats to e-Swisher could be a recall on electronic cigarettes or the discovery of side effects from smoking electronic cigarettes. Another possible threat to this product could be a ban on smoking electronic cigarettes indoors in public places, which is a major selling point for electronic cigarettes.

Consumer Reports According to Consumer Reports online, adverse effects of smoking electronic cigarettes have been reported to the FDA including headache, dizziness, nausea, sleepiness, and coughing or other respiratory symptoms. In 2010, the FDA tried to block the sale of some e-cigarette brands. On the other hand, the Journal of Public Health Policy concluded that electronic cigarettes

show tremendous promise in the fight against tobacco-related morbidity and mortality. Another concern that is highlighted is that electronic cigarettes are more appealing to minors with their accessibility online and enticing flavor options. Additional Information An article found in Convenience Store Decisions online states that the market for e-cigarettes is expected to quadruple between now and mid-2014. In 2010 there were 750,000 units sold and that jumped to 2.5 million units sold in 2011. In the U.S., close to 20 million cartridges and about 10 million disposables are sold on a weekly basis. A June 2011 national study conducted under the supervision of ECH Research of Cincinnati, in conjunction with Opinionnaire, surveyed more than 200 smoker households that use electronic tobacco products and found: E-cigs are skewing toward the female demographic at 60.5% versus 39.5% of the male demographic 99% of e-cigarette users are either current or past users of multiple forms of tobacco. Approximately 70% of survey respondents said they intended to quit smoking before starting ecigarettes. 49.5% of e-cigarette smokers purchased their first e-cigarette over the Internet. 46% of e-cigarette users either smoke or used to smoke cigars. 33% of e-cigarette users reside in Southern states. 19% of e-cigarette users reside in the eight Northeast states. 57% of e-cigarette smokers have used e-cigarettes less than six months. 79% of initial e-cigarette purchasers continue to buy and use them. 82% of e-cigarette smokers currently continue to smoke regular cigarettes in addition to e-cigarettes. 62% of e-cigarette smokers state they have stopped smoking cigarettes or smoke fewer cigarettes since starting e-cigarettes.