E-Cigarette Market Case Study

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The excise duty on cigarettes has cumulatively increased by 75% over three years. This has forced ITC to raise its price by 15-20 %. These duties are expected to rise due to serious stance adopted by the Indian government. The volume and revenue have fallen in the last fiscal and are expected to fall in double digits in the future.
India currently has 110 million tobacco smokers. It’s a huge market and ITC dominates most of the market. ITC is losing the market due to some unavoidable factors. (Political and Legal) There is growing awareness about the health risk of smoking which may aggravate the cause.70 % of the smokers have the intent to quit smoking but they fail due to the lack of proper aid. As a result we recommend ITC to launch Ecigarette.
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The end glows when you inhale, a puff of smoke comes out when you exhale. Though, no actual burning takes place. An e-cigarette has a small battery, a heating element and a cartridge that holds nicotine and other chemicals.
• E-cigarettes are meant for people wanting to quit smoking. Containing only a fraction of chemicals present in a normal cigarette coupled with no secondhand smoke, they offer a healthier way to handle the nicotine craving.
• The ITC e-cigarette is disposable device available in different flavors (mint, menthol etc.).
• Primarily aimed at people trying to quit smoking. The aim is to make e-cigarettes an alternative to cigarettes, a more socially acceptable one.
• Since, it contains no tar, and a host of other harmful chemicals, it certainly healthier than actual cigarettes. But, to actually say, it helps quit smoking would require approval from Heath Authorities.

• Specialized stores for high end cigarettes
• Online portals like e-retail sites
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It may also affect our traditional products by stressing on the health hazards of them.
We would mostly go with print, web and social media. In print media we would target the men’s magazines and not traditional magazines. Fitness magazines would also be targeted.
The main focus would be social media and paid research. Search engines like google, yahoo and Bing where if a user searches ways to quit smoking or tries to search the harmful effects of smoking and if the geographical location is within India, the ad of e-cigarette pops up. This way we can ensure that cannibalizing does not take place and only the actively seeking consumers are

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