project smokox product to introduce in india for first time

8/9/2019 Project Smokox product to introduce in india for first time

1/8

Smok ox- Now quit smoking naturally.


2/8


3/8

Customers

People who are willing to quit smoking realizing its effects.

Employees

Employing the correct staff and keeping these staff motivated is anessential part of the strategic planning process of an organisation. Trainingand development plays an essential role particular in service sectormarketing in-order to gain a competitive edge. This is clearly apparent inthe airline industry.

Suppliers

Increase in raw material prices will have a knock on affect on the marketing

mix strategy of an organisation. Prices may be forced up as a result. Closersupplier relationships is one way of ensuring competitive and qualityproducts for an organisation.

Shareholders

As organisation require greater inward investment for growth they faceincreasing pressure to move from private ownership to public. Howeverthis movement unleashes the forces of shareholder pressure on thestrategy of organisations. Satisfying shareholder needs may result in a

change in tactics employed by an organisation. Many internet companieswho share prices rocketed in 1999 and early 2000 have seen the shareprice tumble as they face pressures from shareholders to turn in a profit. Ina market which has very quickly become overcrowded many havel failed.

Media

Positive or adverse media attention on an organisations product or servicecan in some cases make or break an organisation.. Consumer programmeswith a wider and more direct audience can also have a very powerful andpositive impact, hforcing organisations to change their tactics.

Competitors

Drug from Pfizer.


4/8

The name of the game in marketing is differentiation. What benefit can theorganisation offer which is better then their competitors. Can they sustainthis differentiation over a period of time from their competitors?. Competitoranlaysis and monitoring is crucial if an organisation is to maintain itsposition within the market.

1.Threats of New Entrants=LOWNew Product differentiation Very Tough already cigarettes at

different price points, flavors, brand images

Access to distribution channel is tough big & established

players are present (e.g. ITC)

Capital requirement is very high for a pan India launching.

Local launch can not catch up scale Cant use Economies of

scale Government policy high tax, no TV/Radio Ads

2.Bargaining Power of Suppliers=LOW

Many inputs are required but in small amount paper, tobacco,

filter

There are many small scale, unorganized suppliers

Cigarette companies are big and have direct access to

distribution channel and addicted buyers. Suppliers dont havemuch control over smokers.

3.Bargaining Power ofBuyers=LOW


5/8

Addicted customers - even after knowing harms people cant

leave it

Smoking has lot of symbolic and emotional values attached with

it

Product quality not much important to smokers Researchshows most people cannot differentiate among the brands in a

blind taste

Low switching costs in terms of price

4.Threat of Substitute Product=LOW

Herbal Cigarettes (e.g. Nirdosh) were launched but did not

become popular (no emotional value)

Nicotine patch is another substitute but again no comparisonwith cigarettes in terms of popularity and usage

5.Competitive Rivalry in the Industry=HIGH

Many competing players: ITC, Godfrey Philips, VST, GTC etc -

see chart below

Price competition continues

Advertisement for cigarettes is now prohibited in India

Replacement for ads event sponsorships and sales promotions

All making new product launches


6/8

Attention Creating awareness the customer through television

advertising, newspaper advertising.

Interest Raise customer interest by demonstrating features, advantages,

and benefits such as eliminating cough, pain in the stomach,

irritability and anxiety which occur immediately when you quit

smoking.

Desire Convince customers that they want and desire the product or

service and that it will satisfy their needs. This can be done

through an attractive tagline .

Action Lead customers towards taking action and/or purchasing. It

can be done by intensive distribution, stating the benefits of the

product in the ads.

.

Porters analysis:-

1)Competitive rivalry

-Pfizer introduced an anti smoking drug called Champix in India.. It is a prescription drug that will be promoted only through

doctors who will be informed of its risks carried in its labelling.Smoking is expected to cause 930,000 adult deaths in 2010 in

India and given the growth in population, there will be a million

smoking-associated deaths every year thereafter. At Rs 9,500 for

the three-month treatment, it doesnt come cheap. Two studies

have shown that 44% of smokers who went through the


7/8

prescribed 12-week treatment quit smoking. However, US

regulatory issued warnings on the drug due to the many side

effects associated with it such as mood fluctuations, abnormal

behavior, heart attacks, loss of memory.

-Homeopathic treatment is also available in india.

However, it contains oils like Ylang ylang, rosemary,

peppermint and Eucalyptus which need to be mixed with

alcohol and diluted amounts of nicotine.

2)Threat of substitutes

-Yoga helps people in exercising control over mind andbody. Because of this, people they are able to overcome

their stress and hence they are not addicted to smoking.

- Therapeutic and counselling centres

- Healthy cigarettes(Electronic)

- Candy cigarettes, which are not addictive.

- Hookah

3)Bargaining power ofBuyers

There are few buyers, so buyers are powerful. The

buyers can at times reject the product because of its

pricing. This product is not standardized, so buyers caneasily switch to another product.


8/8

4)Bargaining power of suppliers

-The bargaining power of suppliers is quite low.

-This product actually does not need any kind of external

suppliers. We can have our own nurseries and grow the

herbs required for making the product.

5)Threat of new entrants

- The threat of new entrants is very low.

- Local herbal companies can be a threat, however it will be

minimal at initial phase.

- Chantix, if at all it changes the formula of the product and

eliminates the side effects.

project smokox product to introduce in india for first time

Documents