Marketing Habanos

Despite sluggish economic conditions, the Cuban cigar maker Habanos is creatively facing several key challenges as it increases its share of the premium cigar market:

• Bans on smoking. Although some countries have banned smoking inside restaurants and other businesses, Habanos works with businesses to publicise convenient outdoor smoking areas and private cigar clubs. This has helped Habanos increase sales in Germany and elsewhere.
  
• Limited retail space. Habanos educates its retailers about the company's unique manufacturing process and encourages them to devote special space to its cigars.
• Lower demand. Although overall demand is down, Habanos now aims to get affluent consumers to buy fewer but more expensive cigars.
  

Habanos holds its own festival each year to reinforce brand loyalty, win new customers and enhance the brand's associations with quality tobacco and careful production.

Looking ahead, what will global smoking bans and health concerns about smoking mean for Habanos in the long term?