E – CIGARETTE

MARKETING PLAN

Korak Kanti Majumder

Index

Market Study

Competitive Analysis

TG Mapping

Product

Price

Positioning

Communication Strategy

Launch Strategy

PR

Advertising

Promotion in GT & MT

Distribution ( Please Refer to Basic Model of FMCG Distribution PPT)

Annual Marketing Budget ( Please Refer Excel Work Book)

Market Summary

PAST MARKET STUDY

•ITC have market

monopoly in trade.

•India second largest

tobacco producer but

ninth in terms of export.

•Domestic market have

high growth of 24%.

•Advertising was done.

•Size or volume of market

rise by 5% annually.

Present

•Three Major Player are there in Cigarette

market, though ITC remain leader with

72% market share. Other are VST

Industries, Godfrey Phillip, Vazir Sultan

Tobacco Company.

• De- marketing and public health issue

interest by union government. Embargo

over direct advertising makes difficult for

new entrants .

•New entrant Tobacco free cigarette ,

chewing gums, filters are entering in

market.

•Pricing of tobacco substitute are high in

terms shelf life of product.

•Market is still virgin for new product line of

tobacco free or less tobacco product.

•Advertising of such product are niche to

very niche and so people are aware but

no to any specific brand.

FUTURE

• New international players can’t enter

if FDI doors remain closed by Union

Government.

•Smoke free health cigarette of

different taste and flavor will give

competition to orthodox smoking

habits.

•Surrogate advertising will soon stop

for regular tobacco cigarette’s.

•Advertising through trade marketing

have to robust and long term to though

competition is high in retailer ends.

Market through complimentary product

line to create brand awareness.

•More cost effective product need to

come with High ROI for retailer to feel

excited to keep on shelf. High Visibility

Margin need to be given for period till

demands or repeat purchase grows

steadily.

Competitive Analysis

Name of Brand

Core Area of Focus Advantage Disadvantage

Imported Products Sales Mainly through E commerce

Non-Internet user, retail customer user are still untapped.

Marketing Digital Marketing through Open Webspace High reach Low Cost

Persuasive Marketing and shopper marketing efforts are null as no retail focus.

Distribution Manufacturer - E commerce , Manufacturer - Importer - Retailer

No Brand it is generic product line for consumer.

Health Buddy Sales Ecommerce and Retail Both

Both have separate marketing initiative and distribution format. Retail push will able to gunner more sales.

Marketing

No more generic product line, its under specific brand of a company of repute in India New product market acceptance risk.

Distribution Specific Set of Distribution through Channel Sales Network. Cash Carry model.

Time taking process to set up channel network as company is new in FMCG product market.

TG Mapping

Preferably TG are three different types.

Smoker, Social – Non Smoker, Stake owner .

Age – 25-45 yrs

Product Definition

Tar Free Smoking Filter

Each filter last for roughly 7

cigarettes

Reduces Morning Throat Burn

Also reduces Tar & Nicotine

without changing the taste.

Each pack has 10 filters

Promotes whiter teeth

Nicotine & Tar Free Cigarette

No nicotine Up to 80% cheaper than regular cigarettes

No tobacco

No carbon monoxide

No second hand smoke

No ash

No tar

No bad breath

No yellow teeth

No stained fingernails

No risk of fire

Multiple flavors available

Price

The pricing of e cigarette will be key factor for market acceptation.

It have to be economical than monthly or bi monthly expense of normal cigarette. It have be repurchased at least monthly or quarterly.

In E-Commerce Platform there are lot of similar products are available they sell only by name of the retailer like Amazon, Snap Deal etc as people are not aware of any specific brand.

Price what consumer pay is for product, price for microsec e- cigarette here consumer will pay for product and for easy availability, and through wide spread distribution it will gain trust of consumer and lead consumer onus.

Price Range from 400-4200 (INR) the only benefit gross consumer are not aware of cause of difference of price.

Positioning

Positioning

“NO TAR NOT BIMAR” TAR FREE FILTER

“ CHOICE OF MAN” NICOTINE AND TAR FREE CIGARATTE

Consumer promise

Risk free Smoking, is main promise. With GO Green initiative where plant or human loss is negligible.

Communication Strategies

Communication Strategy:

Sampling Activity in Pan Corner: Effective sales happens through consumer experience so for Tar

free filter and Non Nicotine Cigarette required sampling initiative for at least a quarter so that people recognize retail corner.

Trade Marketing : Led Light embedded countertop need to placed at different retail to promote the product line. It has to be very exotic in look as it a lifestyle product. Additional expense on visibility need to given to retailer on monthly or quarterly basis.

Sponsoring Celebrity events: Award ceremonies, fashion fiesta. All other media coverage will be done through this kind sponsorship. Title sponsor in lifestyle party events etc.

Quarterly Sampling Activity & CUM Trade Marketing

Sl.no Overhead Unit Rate Amount

1 Manpower 75 10000 750000

2 Led Lighting Countertop 1200 2000 2400000

3 Mobile advertising 3 65000 195000

5

Press Conference Launch 1 300000

3645000

Sales Figure from Sampling

Month Coverage Outlet Unit Sales Per session Rate Amount

September 650 15 399 3890250

October 650 25 399 6483750

November 650 35 399 9077250

TOTAL 1950 19451250

Launch Strategies

Launch plan

Launch of Product line will be done through press conference with press and dignitaries. Company Spokesperson must address press about the launch of SBU in FMCG domain. Plan for the coming quarter.

Durga Puja is great Opportunity to market new product and spending trends are more in lifestyle product. Taking Stall in few high Footfall pandals and Hoarding sites through Puja sponsorship will give overall brand presence and reach to mass audiences. Cost is about Rs100000/ per stall with decoration and Rs120/- per sq.ft for hoardings at prime area of Durga Puja’s.

Launch budget:

Promotional Budget For Launch

Sl.No Overhead Unit Rate Amount

1 Local Celebrity 1 50000 50,000.00

2 PR Agency 45000 45,000.00

3 Food & Beverages 120 1200 144,000.00

4 Podium Décor 35,000.00

5 Light & Sound 25,000.00

TOTAL 299,000.00

Public Relations

Strategy and execution

PR strategies: Risk free smoking and

environment friendly way.

Main highlight is to gain as much as news paper

column space in business lines and social arena

to promote Green revolution in smoking.

Plant Tree

Award Ceremony (Real Heroes)

Advertising

Strategy and execution

Advertising at POP and POS zone. Durga Puja Outdoor advertising with sampling activity from stalls. Creating corporate videos for tree planting and Real heroes which envisage a strong brand identity. Surrogate mode of advertising will be preferred.(Tar Free Filter and Non Nicotine Cigarette). Advertorials will be promoting the usefulness of e cigarette which will create demand pull.

Spending is about 4% of Net Sales Value.

Promotion GT & MT

Shoppers Marketing (MT) :

Detail Plano gram for persuasive visibility in modern trade retail gives higher consumer attention and knowledge transfer opportunity. The footfall in any modern trade retail hyper market or supermarket makes prospective exposure of consumer towards different products offerings. Slack Wall will be better for product display.

Sampling Activity: Sampling activity will actually create

sales around GT, as in MT scope is not available. Real experience of product create conviction about product within the consumer.

THANK YOU