Clandestine cigars?
How is it that some brands refuse to allow general advertising and catalogue sales? The brand that comes up the most here lately is San Lotano, but I know there are others. I don't understand why someone would produce a product and not hope to market it as widely as possible. So...the question is Why?
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As to the question, part of making your brand a boutique brand with cachet is to avoid the idea it's a mass-market product and that it is rare and exclusive. Part of it is cost of advertising, not having a specific demographic (cigar smokers are all over, in all age ranges, with all tastes and different walks of life) to really market to, and a politically correct choice to not accept tobacco advertising because a small mob of people with pink hats or something would rage against your mag/website etc.
I also imagine that here in the U.S. there's lot of legislation and rules that prevent any tobacco company from advertising in specific media or with a certain frequency as the war against freedom and choice rages on by those who convinced people, or have been convinced that one smoke can kill you...
one more afterthought...
the B&M is one of the last places you can go to smoke a cigar (besides my back yard but even that is under attack). giving a B&M exclusive cigar and not selling online or through catalogs will help push people to the shops that hold up the industry.
If there were no limits on production possibility, then I would say that mass marketing could provide greater margins, if the producer could acquire the supplies to make cigars at a lower per unit cost. However, there is always going to be some limiting factor. Some things people don't always think about are the cost of labor. To produce more of something you generally require either more laborers or more production out of existing laborers. If I make widgets and currently employ everyone nearby who will make them for me for $10/hour, how do I produce more? I could raise wages to $13/hour. That would likely get me more workers. Of course I just raised the average labor cost of every widget produced. I could work my laborers longer, but you run into a myriad of reasons why this is either not feasible or also adds marginal cost to each widget.
At the end of the day some things can make more profit if mass marketed for myriad of reasons, while some things can't. Marketing a product to a wide market does not necessarily mean more profit than marketing to a small market, even if there is a market for the product.
At the end of the day there are so many variables to why or why not it makes sense to market something a certain way that, without having intimate knowledge of the company and its business model, trying to say definitively what is their most effective way to market themselves is really just conjecture.