Tobacco Business

[ 46 ] TOBACCO BUSINESS [ MAY / JUNE | 21 ] watching how his team comes together to solve problems. Davidoff’s ability to meet the needs begins with the team Austin has surrounded himself with, and that’s one thing he’s quick to emphasize that other companies need to focus on within their own businesses. “The quality of the people you have day in and day out in front of your partners is critical to their success, which is ultimately your success,” he says. The focus on quality people is also applied to Davidoff’s retail part- ners. With the Davidoff brand, the company is highly selective when it comes to its retail partners, choosing to work with an exclusive group of merchants that are part of a greater global network of some of the tobacco industry’s top retailers. “It’s the strategy behind the brand since day one,” Austin says. “Davidoff should be where Davidoff should be. Luxury exists because of standards, and we are very selective of who we choose to work with when it comes to the Davidoff brand. That’s what has made it successful for over 50 years.” Other labels in Davidoff’s port- folio of strong, well-positioned and iconic brands are all branded and marketed with a strict commercial policy that is consistently enforced. The Davidoff team is tasked with building these brands with the intent of pushing them forward while also taking each cigar line’s commercial and perceived value into consideration. “From a marketing and commer- cial perspective, we’re at the top of the pyramid in this industry,” Austin says. “There’s a strong track record of innovation and of inge- nuity in our go-to-market strategy, and we pride ourselves on the qual- ity of experiences and execution. Our products are high quality as a result of strict manufacturing stan- dards and having some of the best tobacco and brand people in the history of this industry. In addition, Davidoff invests in consistency. Aside from our people, raw materials are huge investments.” Preserving the Legacy Austin and his team at Davidoff have big ideas and initiatives in the works that will help evolve the company’s overall business. These plans all rely on observations and understanding where the trends are headed and whether Davidoff can insert itself into them or somehow reshape them. Success also means accepting the fact that resources, both human and financial, are finite for most companies, even Davidoff, and under- standing how a company uses its resources is absolutely critical. “Our team is always thinking about ways to improve our business from various angles—costs, talent, things happening in the market- place, consumer trends,” Austin explains. “Consumer behaviors as a result of COVID-19 have changed dramatically. Things that were foreseen 10 years out have accelerated in one year.” One way in which Davidoff has adapted to current trends has been the company’s embrace of e-commerce and the increased digitization of consumer behavior. In recent years, Davidoff has spent a significant amount of effort and time building its own digital world and foot- print, from increased social media engagement to the launch of a fully functioning online store. Engaging with consumers serves as a center- piece of Davidoff’s marketing and branding strategy, especially with the decrease in viable media out- lets in the premium tobacco cate- gory. Like other tobacco businesses, Davidoff faces many restrictions on how it can attract consumers with paid media, an obstacle the company knows it is not alone in dealing with but also one that gives it an opportunity to innovate. “This area specifically is some- thing the industry as a whole needs to solve in order to continue the conversation with consumers and better serve them as digital platforms and resources continue to evolve,” says Austin. “We don’t choose how consumers engage and transact with us—they do. These are facts, whether you choose to agree with them or not.” After grounding its sales force for an entire quarter of 2020, Austin and his team at Davidoff made a collective decision to allow the sales team back into the field in order to reconnect with retailers and to support them in any way they could following the aftermath of the COVID-19 pandemic. “Our marketing teams were pivoting toward immediate needs and developing opportunities for partners, while our commercial team was out there to help facilitate success,” Austin explains. Retailers are the heart of Davidoff’s business, and Austin recog- nizes that brick-and-mortar stores face many challenges that are now amplified by the COVID-19 pandemic. Following a recent trip to New York, Austin predicts that many of the challenges traditional retailers are now having to deal with will last for quite some time, and that those willing to change and adapt will be better positioned for success than those that will wait for things to return to normal. “The landscape needs to shift quickly,” he says. “Retailers need to