Mini-Cigarettes

Group Name - (The Marketocrats)

Marketing Plan - (Mini-Cigarettes)

1 Executive Summary

The product “Control Z” is a mini cigarette with the tagline “renounce to reduce” which would cater to the need of chain smokers to reduce smoking. The idea of the product is to reduce the size and price of the cigarette in order to decrease the intake of the nicotine. The target market is chain smokers who wanted to reduce or quit the consumption. The mission of the company is

“To offer an affordable and high quality tobacco product for the smoking population keeping their health in concern”

The product comes in 2 varieties- one is Regular and the other will be Light. The size of the cigarette is small and hence the nicotine content will be less than the existing products offered by the competetitors in this segment.As a strategy it has been decided to involve intermediaries to perform the downstraem functions in the value chain. This can provide opportunity for the company to concentrate more in increasing the penetration into the market and achieve higher sales.The initial cost of advertising is high due to the existing regulations for cigarettes.Due to the high promotional cost associated with the product, breakeven is achieved after 3 year business operations.

2 Situation analysis

2.1 MARKET NEEDS IDENTIFICATION:

Today in India 53% of the total Indian male population is smoking cigarettes or bidis which accounts to nearly 12% of the total smoking population of the world. By 2014 there has been an exponential rise in the number of smokers in India by 110million from 74.5 million over a period of 30years. Thus it is evident that a huge demand is craving over nicotine.

A large number of Indian smokers are trying to quit cigarettes to lead a healthy life. Both GOI and Non-Govt organisations have taken the charge to make India nicotine-free through many initiatives. But medical research suggests that an abrupt decline in the consumption of nicotine by...