28-07-2012, 03:49 PM
E-cigarettes
[attachment=29415]
Electronic cigarette or e-cigarette
A battery-powered device
an alternative to smoked tobacco product
Variety of flavors with very less concentration of nicotine
No lighters required…
Smoke anytime and anywhere
No health concerns..
Operation:
E-cigarette designed to resemble the outward appearance of real smoking products.
They are reusable with replaceable and refillable parts.
Consists of 4 components.
Filters are replaceable
Mechanism
A micro sensor signals the consequent ‘under- pressure’ to a mini processor unit and a spiral instantly heats up.
The heated air evaporates the nicotine and aroma at exactly the right temperature within the filter.
Manufacturing Technology
Production to be done by automated machines
Most of the components to be manufactured with biggest capacity for the filter kits
Monthly capacity to be 3,00,000units
Production plant location at Kolkata and Bangalore.
Sales Promotion
Endorsers would most probably be the likes of Amir Khan..
Advertisement in the Times of India, which is currently running an anti-smoking campaign
In multiplexes, cinema halls
Television ads during major sports events like IPL, cricket world cup…. Also in the news channels
Competitors
Sole competitor in India: ITC Ltd. ( largest seller of a variety of tobacco cigarettes)
Other local competitors include:
In Mumbai: Godfrey Philips Ltd.
G.T.C. Industries Ltd.
In Hyderabad:
V.S.T. Industries Ltd.
Hyderabad Deccan Cig.
Break-even Analysis
Fixed cost per year: R 15,00,000
Variable cost per unit: R 250
Selling price per unit: R 300
Contribution per unit(towards fixed cost): R 50
Break-even point: fixed cost/ contribution
= 15,00,000/ 50
= 30,000 no. of cigarettes
Opportunities for the product:
To be the FIRST such product in the country
The hype around smoking bans
Holding a cigarette is still cool
The market offers massive penetration
The smokers market is still growing rapidly
Media will jump on it (free publicity)
The smoker has to look for alternatives
[attachment=29415]
Electronic cigarette or e-cigarette
A battery-powered device
an alternative to smoked tobacco product
Variety of flavors with very less concentration of nicotine
No lighters required…
Smoke anytime and anywhere
No health concerns..
Operation:
E-cigarette designed to resemble the outward appearance of real smoking products.
They are reusable with replaceable and refillable parts.
Consists of 4 components.
Filters are replaceable
Mechanism
A micro sensor signals the consequent ‘under- pressure’ to a mini processor unit and a spiral instantly heats up.
The heated air evaporates the nicotine and aroma at exactly the right temperature within the filter.
Manufacturing Technology
Production to be done by automated machines
Most of the components to be manufactured with biggest capacity for the filter kits
Monthly capacity to be 3,00,000units
Production plant location at Kolkata and Bangalore.
Sales Promotion
Endorsers would most probably be the likes of Amir Khan..
Advertisement in the Times of India, which is currently running an anti-smoking campaign
In multiplexes, cinema halls
Television ads during major sports events like IPL, cricket world cup…. Also in the news channels
Competitors
Sole competitor in India: ITC Ltd. ( largest seller of a variety of tobacco cigarettes)
Other local competitors include:
In Mumbai: Godfrey Philips Ltd.
G.T.C. Industries Ltd.
In Hyderabad:
V.S.T. Industries Ltd.
Hyderabad Deccan Cig.
Break-even Analysis
Fixed cost per year: R 15,00,000
Variable cost per unit: R 250
Selling price per unit: R 300
Contribution per unit(towards fixed cost): R 50
Break-even point: fixed cost/ contribution
= 15,00,000/ 50
= 30,000 no. of cigarettes
Opportunities for the product:
To be the FIRST such product in the country
The hype around smoking bans
Holding a cigarette is still cool
The market offers massive penetration
The smokers market is still growing rapidly
Media will jump on it (free publicity)
The smoker has to look for alternatives