Lorillard Tobacco Company | Company Profile, Marketing Contacts, Media Spend, Brands
Lorillard Tobacco Company is a manufacturer and marketer of tobacco products. The company, headquartered in Greensboro, NC, is one of America's largest and oldest tobacco companies and popular brands include Newport and Old Gold.
|Main Telephone||(336) 335-7000|
|Main Fax||(336) 335-3448|
Lorillard Tobacco Company ContactsContacts (5)
|David T.||President & Chief Executive Officer||NC|
Sample of Associated Brands
|Anthony P.||Chief Accounting Officer, Controller & Vice President||NC|
|Randy S.||Executive Vice President, Marketing & Sales||NC|
|Kathy S.||Senior Vice President, Sales||NC|
|Leonard J.||Vice President, Brand Marketing||NC|
|****** ******||***&||AOR - media buying & planning||unknown||present|
|******-******** ****||***&||AOR - media buying & planning||unknown||present|
|********* ******* *******||***&||AOR - media buying & planning||unknown||present|
|*** ***'*||***&||AOR - media buying & planning||unknown||present|
|*******||***&||AOR - media buying & planning||unknown||present|
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Lorillard focuses on brand building across traditional, e-cig portfolio
By Erik McNeal
Lorillard Tobacco Company is not changing its efforts to focus on brand building – just the way it will build its brand as the leader in the electronic cigarette market.
The third largest tobacco company in the U.S. is the parent of Blu, which it acquired in April 2012. Lorillard said previously that it would spend $40 million this year to market Blu, which holds about 40 percent of the e-cig market.
Unlike traditional tobacco-based smoking products, e-cigs are battery-powered devices that heat a liquid nicotine solution in a disposable cartridge to create an inhalable, orderless vapor. They contain contain no real tobacco.
The e-cig market is projected to almost double from $500 million 2012 to $1 billion this year and grow at a 50 percent compound annual rate during the next few years.
“Brand building is job one in this category,” CEO and President Murray Kessler said during the Lorillard’s recent investor day. “It can't be nerdy or uncomfortable to use this product. It has to be socially accepted.”
Blu reported $57 million in sales during its last quarter, up from $8 million in sales the quarter before Lorillard’s acquisition. During that time, distribution has increased from 12,000 to 80,000 outlets.
According to the company, more than 40 percent of blu’s business is in convenient stores, 29 percent is food and drug, 14 percent is online and 10 percent is tobacco stores. Disposable and rechargeable sales are split 50/50.
A single, disposable e-cig has less up front cost and is more accessible at convenience stores, while rechargables are less expensive because customers can purchase refill cartridges.
Lorillard reports that blu is at more than 80 percent awareness because of a variety of marketing efforts, including TV and print ads featuring actor Stephen Dorff and a sponsorship campaign that ties into motorsports, music festivals and other events.
“Other music festivals, other venues, sampling that's being done across the country,” Kessler stated. “This is a full-blown, consumer-based brand-building marketing effort.”
The company is working to gain even higher share after hiring Jim Raporte as president of blu. The 30 year tobacco industry veteran leads blu eCigs’ functional operations and will help drive the company's transition from an emerging startup to a large scale second generation company, according to a statement.
Jason Healy, blu’s founder, now focuses on creative marketing and product development.
Kessler said additional celebrities may represent blu in future campaigns.
Avrett Free & Ginsberg Inc. is Lorillard’s AOR for media buying and planning according to The List.
Wells Fargo Securities Analyst Bonnie Herzog NJOY at 33.percent percent, though its market share is flat compared with June 2012.
Herzog projects $2 billion in retail sales for e-cigs this year and that the market will exceed $10 billion in annual sales by 2017.s
Blu’s other competitors include R.J. Reynolds Vapor Co., which will launch its MarkTen brand in Indiana, starting in August.
Smaller e-cig brand FIN, which hired BB&T to evaluate acquisition bids earlier this year, appointed Joanna Martins as its vice president of marketing in January.
DailyVisa recently interviewed the CEO of Logic Technology, an e-cig company reporting strong growth in New York City and the surrounding Tri-State area.
Spending on e-cigarette TV ads increased 17.9 percent from 2011 to 2012, while print ad spending increased 71.9 percent, according to a Citibank report.
“We've refreshed print advertising,” Kessler explained. “We're more aggressive. We've improved our capabilities on direct-mail, reaching out, sending coupons to competitive users, getting them to try and enjoy and learn about the benefits of the Newport franchise, expanding product offerings like Newport Smooth Select.”
Previously, brand marketing was not strong geographically and direct mail did not succeed because Lorillard “did not even try to reach out to new consumers,” Kessler noted.
Lorillard plans to launch two new traditional cigarette product in the fourth quarter, Newport Non-Menthol Gold Box 100s and Newport Non-Menthol Gold Box.
Lorillard Tobacco Company
714 Green Valley Road
Greensboro, NC 27408
President & Chief Executive Officer
Executive Vice President, Marketing & Sales