Prepared By:-

NIKHIL HULWAN

ADITYA SHETTY

SATYESH DESAI

SAGAR YADAV

BUSINESS PLAN (ELECTRONIC CIGARATTE)

COMPANY : VERVE ELECTRONIC CIGARETTES

PLANT LOCATION : RABALE, NAVI MUMBAI, MAHARASHTRA

HEAD OFFICE : LALBAUG, MUMBAI

PRODUCT ADVERTISING : AD’S, POSTERS, HOARDINGS, CAMPAIGN FOR PROMOTION,

LOCAL MEDIA, NEWSPAPER

REASON FOR THIS BUSINESS:-

• Research into E-Cigarettes lags behind their

popularity

• Booming business in order to outsell tobacco

products

• No. of teens using harmful cigarettes has

increased drastically after 2012 & hence

to reduce disease & death caused by tobacco

• To reduce addiction towards actual cigarette

COMPETITORS

CURRENT SCENARIO• Currently, e-cigarettes are not regulated in India. The scope of the existing

COTPA act and even the proposed amendments is limited to cigarettes, cigars,

cheroots, bidis, gutka, pan masala (containing tobacco), khaini, mawa, mishri

and snuff.

• Two states – Punjab and Maharashtra - have outright banned the sale of e-

cigarettes but otherwise they appear to be legal. You can find them for sale in

online stores such as Amazon, Flipkart and Snapdeal as well as in your local

medical and other stores (particularly in the larger cities). The largest seller of

cigarettes in India, ITC has also launched e-cigarettes last year – these are

available online with a disclaimer that they are not for minors.

• While expanding the scope of the “tobacco products” in the COTPA Act to cover

e-cigarettes is an option, defining them as “deemed tobacco products” allows for

the development of more fine-grained and nuanced rules applicable to e-

cigarettes.

MARKET SIZE

• TIER I CONSUMER

• THE PACKETS CONSISTS OF 3

PACKED E-CIG.

• MAJORITY OF POPULATION

COVERED WOULD BE OF AGE

GROUP 21 TO 55 YRS.

• EXTRA BLENDED SO AS TO LAST

FOR LONGER (50 TIMES) USE

• TIER II CONSUMER

• THE PACKET CONSISTS OF 1

PACKED E-CIG.

• MAJORITY OF POPULATION

COVERED WOULD BE OF AGE

GROUP 18 TO 60 YRS.

• NORMALY BLENDED SO AS TO LAST

FOR 30 TIMES OF USE

THE ELECTRONIC CIGARETTE IS SEGMENTED

ACCORDING TO THE TYPE OF CONSUMER

E-CIG. CONSUMER WOULD PROBABLY COMPRISE OF EDUCATED MIDDLE

CLASS MAINLY FROM THE AGE GROUP OF 21 – 40 YEARS OF AGE.

PLACE

• To be sold at Medical shops & at

places where normal cigarettes are

sold

• Digital Marketing – online selling

• Kiosks & stalls in malls

PROMOTION

• Newspapers

• Banners & Hoardings

• Campaign & Street Shows

• Advertisements in TV, Theatres, Malls

4 P OF MARKETING

PRODUCT

• The name of the product will be “VERVE”

• The company is in to manufacturing of

smoke free & harmless cigarette

• High quality & cost effective product

• Attractive packaging

PRICE

• INR 200 per piece if sold loose

• INR 550 in a packet (consisting 3 e-

cigarettes)

• INR 1000 which comes with a charging

kit with extra battery

MARKETING STRATEGY

• Celebrity spokespeople - Like cigarette ads of old, television, online and print ads for e-

cigarettes feature catchy slogans and celebrity endorsers, including actor

• Use cartoons - The web site for Verve has featured a cartoon pitchman named “Mr. Cool.”

It was reminiscent of the Joe Camel cartoon character that so effectively marketed

cigarettes to kids in the 1990s.

• Ads say, “Switch, Don’t Quit.” - Tobacco companies have long tried to discourage

smokers from quitting by marketing cigarette changes as reducing health risk. Verve ad

carry a similar message.

• Sponsor Sports & Music Festivals - For decades tobacco companies used

sponsorships of sports and entertainment events, especially auto racing and music

festivals, to promote cigarettes to huge audiences, including kids. Cigarette sponsorships

are now banned, which is a big plus.

ORGANIZATION STRUCTURE

PLANT LAYOUT

WORK PLACE DIAGRAM

PRODUCT CAPACITY

• No. of Units Manufactured per day :- 5,000

• No. of Units Manufactured per month:- 1,50,000

• No. of Units Manufactured per year :- 18,00,000

SALES STRATEGY

• No. of Units sold per day:- 5,000

• No. of Units sold per month:- 1,50,000

• No. of Units sold per year :- 18,00,000

PLANT

500

RETAILER

10 DEALER

BASIC PRESUMPTIONS

• e-cigarettes are such a new phenomenon that we won't know the

full effect until state and local regulations are enacted that may

or may not affect their use

• e-cigarette is a relatively new consumer product, there are a lot

of questions about government regulation and whether these

devices should be allowed in certain places

• local businesses are deciding to go non-smoking. Makes for a

much more enjoyable environment

PLANNING

• E-cigarettes are much safer - Since you’re not “burning”

tobacco, not to mention using an open flame to light it, traditional

cigarettes by default pose serious fire hazards.

• Social - social impacts of traditional cigarettes, which is in a way

related to reasons one through four. Over the years, smoking

has increasingly been viewed negatively by society at-large for a

variety of reasons.

• E-cigarettes from Verve provide this alternative, in a cost-

effective, easy way.

SOURCES OF FINANCE

• Funds to be asked from WHO as they have approved the

promotion of E-cigarettes

• Local govt. organization for start up cause in production of

environment friendly & harmless to health kind of e-cigarette

• Personal Savings & Loan from Bank

PROJECTION FOR UPCOMING YEARS

Global E Cigarette & Vaporizer Market 2015-2025 - Analysis

& Forecasts for the $50 Billion Industry

THANK YOU