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 cant 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 cigarettes.

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 Pujas.

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 Dcor 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