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MKT 4710 Marketing Strategy

Published : 05-Oct,2021  |  Views : 10


E-Cigarettes: Marketing Versus Public Health

Marketing plan, address the following:

  • State assumptions
  • Gather initial information
  • Audit the market
  • Determine the marketing strategy and business communication standards to be used
  • Assess due diligence (any operational, financial, or human resources requirements needed to implement the plan)
  • Set marketing goals and objectives
  • Describe any benchmarks from other competitors or industries
  • Prioritize marketing objectives
  • Specify marketing actions
  • Explain any global marketing issues in the marketing plan
  • Specify any limitations to implementing the plan



The electronic market industry is rapidly growing industry, which emerged in the global market around a decade back. The opportunities of sales in this industry are relatively high and the estimated worth of the market in Europe is around $650 million and in the United States is around $1.7 billion (Kim, Arnold & Makarenko, 2014). There has been a drastic advancement in the field of technology and this has accelerated the growth of electronic cigarette industry. The industry is expanding at an exponential rate. Electronic cigarette creates vapor instead of smoke and ash in the conventional cigarettes.  The amount of nicotine that is generated in one puff is quite less when compared to the conventional cigarettes and this can be used for rehabilitating people having a problem with addiction to cigarettes (Giovenco et al., 2014). The e- cigarette is a feasible solution and it can be used as a tool for replacing cigarettes. The e-cigarettes can break the social stigma such as public smoking and unlike tobacco companies, they can sponsor sport events or post an advertisement on television. The electronic cigarette companies have imitated the feeling of conventional cigarette accurately so smoking an e-cigarette will feel like the real deal.  The amount of nicotine in an e cigarette is almost equal to the nicotine content in a pack of 20 and more the e cigarettes can be recharged at a cheaper price (McKeever, 2016).

There are serious concerns regarding the usage of e cigarettes because the scientist are not aware of the type of impact the prolong use of e cigarettes will have on the consumers. However, the most of the users are dual users who use both e- cigarettes and normal conventional smoking cigarettes (Finch, 2016).  There are some governments who have limited the use of sponsorship and other modes of advertising of the e cigarette companies (Kim, Arnold & Makarenko, 2014). The usage of e cigarette is higher among the students who are going to the high schools and one of the identification factors of a human being of becoming a smoker is the time they start smoking. There are large numbers of people who made a strong statement that the e cigarette companies should not market the product by keeping the youth as one of the target markets segment.    


The organization is a startup company, which is trying to enter the market of the e-cigarette industry. The product developed by the company can be used as a tool for cessation of smoking. The company is trying to enter the market after restriction has been posed on the promotion and sales of e cigarettes in some of the countries.

Situational analysis

There are significant opportunities of sales within the e cigarette market and if we consider the point of view of the shareholders this particular industry is appealing and has a possibility of making a lot of profit from this business (Lee, Grana  & Glantz, 2014). This is because of the fact that the product will be purchased repeatedly on a daily basis and the growth potential of the product is extremely high. The technology has advanced significantly, this has improved the quality of the product available in the market, and the industry is growing at an exponential rate. This industry has gained recognition at the mainstream level and this is acting as a catalyst for the growth of the company. The smokers generally tend to look for alternatives to cigarette and this has lead to the creation of this huge market segment for this industry (Jiang, Ho & Lam, 2017).

The industry is huge and the market size of the tobacco industry is $800 billion and consists of more than 2 billion smokers. The amount of cigarette sold per year amounts to more than 8 trillion all around the world. There has been a significant increase in the number of the cigarette users all over the world. The estimation made from the market trends show that there will be exponential growth in the market and the number of smokers will rise.

The demand in the market shows that the people are looking for an alternative or a substitute, which is healthier than cigarettes. Moreover, 30% of the total populations in the United States are classified as smokers (Lee, Grana  & Glantz, 2014) and there will a significant increase in the number of the smokers if the cigar smokers, pipe smokers and social smokers are included in the count. The health issues regarding smoking have also risen significantly and there are lots of who are dying every due to diseases caused by smoking. However, even though these facts are known to all and the number of smokers is increasing and most of the users want to quit but only half of them try to quit.  The tobacco users all over the world are searching for substitutes and the use of substitutes have also increased significantly in the past few years. There are various products in the market, which are being used as a substitute for cessation of smoking. The total market size of these substitutes will keep on increasing, the above graph shows how the consumption of e cigarettes will increase, and the consumption of the conventional tobacco will decrease by the end of 2023 (Duke et al., 2014).

When the market of e cigarette initiated the main distribution channel was direct and was totally based on the online market. The products have gained so much awareness and popularity in the market that e cigarettes is being used as the most popular substitute. The availability of the products have also increased significantly and the product si available at the retail outlets and the convenience stores. The product was readily accepted in the market and the present market size for the e cigarette indu8stry has risen significantly.


The above graphs how the market for the e cigarette industry is booming and there has been a significant rise in the market size. The number of players in the market has increased so there is huge competition in the market. The first diagram shows how the sales of e cigarettes have increased significantly from 2008 to 2014 and the exponential growth in this market is very identifiable. The second graphs show the projected sales in the year of 2017, which shows the steep increase in the sales all over the world (Zhu et al., 2014). The growth in the market is in triple digits and the same trend is seen every year. The market size is less when compared to the conventional tobacco companies but this unimaginable growth has posed concerns for the industry giants. The main fear that is developed among all the big tobacco companies is that e cigarette will make their conventional products to be obsolete (Hammadi, 2016).

SWOT analysis


Marketing of the product

The company will market the product by aiming it towards the smokers and the youth. The marketing mix for both this segment of the customers will be relatively different and ios customized according to the needs of each of the segments (Padon, Maloney & Cappella, 2017). The company will present the product in front of the smokers as a source which healthier than the conventional cigarettes and as cheaper than the products available at the market. The company will portray that this is the ideal product, which will help the smokers to quit or switch to a healthier substitute (Lee et al., 2016). The product will be appropriate for using where the smoke free legislations will be applied.  The second hand smoke is harmful and the product offered by the company will be free from it. The product will have similar taste to the conventional cigarettes but will be aromatic and hygienic. The product will also be portrayed as cheaper than the conventional cigarettes and various lucrative offers will be made for the dedicated smokers and the retailers.  The promotional strategies used by the company are press releases, surveys for generating news, advertisements, flyers and online marketing. The online marketing is one of the most popular marketing techniques used by all the companies and it can reach the target audience more conveniently (Hansen, McDonald  & Mitchell, 2017). The company will also conduct road shows and seminars, which will increase the awareness of the people about the usage of the e cigarettes. The company will be able to explain in detail what the company is trying to achieve by launching and what the benefits of using the product are. The strict regulations that has been imposed on this industry has initiated a doubt in the minds of the people and the seminar will help clarifying all the doubts of the target customers and the company will be  able to develop a relationship with the customers ((Lee et al., 2016). Promotion of the product will also be done in the form of e3lectronic media, which will focus on cessation. The overall positioning of the product will be as a necessity good, which will help a person who is addicted to nicotine to switch to a healthier, and in the long run which will help in quitting (House & Street, 2016).

The product will also be directed towards the youth and the main unique selling proposition for the youth will be the presentation of the product. The factors that will look appealing to the youth of the this generations are colors, coolness, attractiveness and inventive packaging (Büyüközkan et al., 2016). The product will be made available in variety of flavors and various promotional discounts will be made by the company will be attractive for the youngsters. The product will be endorsed by various celebrities who act as the youth icons so that it can grab the attention of the youth. The availability of the product will be made at all the premium spots for the younger generations and will be made available online. Online marketing is one of the most prominent ways of reaching the youth of this generation as most of them spent maximum amount of time in social networking. The e cigarettes will be sold at excusive events such as concerts so that it can gain popularity in the market (Rezaei, Wee  & Valaei, 2017).

 The company wants to grab the attention of various stakeholders, which include the politicians, regulators, health bodies, charities and health experts. The product has been portrayed as method reducing the harm of tobacco and as a method of cessation for longtime smokers. The promotional campaigns will be made according to the rules and regulations of these stakeholders. The product is market a replacement product and will keep their distances from the all the tobacco products available in the market (Flint, & Schumann, 2017).

Marketing goals

The company has aimed its product towards the smokers and the youth of this generation. The company aims to reach maximum amount of target customers and achieve penetration in the market so that it can compete with other companies. The organization aims to create an image, which will portray the product as one of the substitute for cessation of smoking. The company aims to get an ROI of 10% within the first year and expand its business internationally (French, 2017). The company also aims to reduce their operational cost by the end of the next fiscal year. The company also wishes to grab at least 15% of the market share within the next 5 years.

Due Diligence

The company has made sure that all the promotional strategies taken by the company is in accordance with the laws of the government. There has been lots of controversies regarding the issue of second hand smoke and so the company will have to be careful about the promotion and the quality of the product sold. The buyer power in this market is huge as there is immense competition in the market so the company will have to make sure that the product generated is of utmost quality. The product quality is one of the sole criteria for retention of the customers and the company will have to take measures about the age restriction laws.  The online retailers and the conventional stores should make sure that the vapor products are not to be sold to customers below the age of 18. The verification should be proper and the company will have to monitor the sales to find out whether all the restrictions are carried out in a proper manner or not. The FDA has amended the rules in 2016 and most of the companies will have to comply by those rules and regulations of the company.

Describe any benchmarks from other competitors or industries

Ritchy, the e-cigarette company based in US has undertaken the hands-on approaches to develop the position in this competitive scenario. In current era of e-cigarette industry, the increasing level of the professionalism is much commendable. The company has set the new regulations that have been placing the larger demands on the e-liquid and e-cigarette products ( 2017). It has been observed that many of the companies that fail to comply with the packaging and promotional restrictions will eventually cease to exist. However, considering such obligations, Ritchy Group Limited has been establishing the secure benchmark to remain as the key player in this restricted market. The major focus of the company is to comply with all the regulations imposed in this particular industry. The compliance team associated with the company is guiding the workforce as well as the partners to bring the successful changes in their operating market. The company has established the benchmarks to become the key player in this industry. Such initiatives are explained further:

  • The company has been paying attention towards monitoring the upcoming compliance requirements in every market through contacting the distributors and trade partners. The company is even involving associations and industry conferences ( 2017). Maintaining the proper cooperation with the agencies and experts are driving the company towards positive changes. In fact, the company is contacting the intelligence agencies for achieving the purpose.
  • The company has been undertaking the R&D project to develop the quality parameter. The closer connection with the R&D department is helpful for the company in significantly developing the quality, supply chain process, and legal teams. In order to accomplish such goals, the project management team has been using the testing and verification processes that ensure the high quality and compliance of the products. In addition to this, the company is also paying the fruitful attention towards the product compliance and packaging procedure.
  • The use of the scientific process for manufacturing the tobacco products would be much beneficial for ensuring the harmless attempt of selling e-cigarettes (, 2017). The company is undertaking such approaches to bring the best outcome of their business.
  • The innovative team of the company is looking forward to utilize the system that notifies about the product on time. The development of the content management system and the internal database is quite helpful for achieving such purpose. Moreover, the associated IT tools work with the advanced technologies to improve the functionalities.
  • The company has set the benchmark by assimilating the best practices and competition monitoring process ( 2017). It claims and vigilance the entire management set up to reach to the determine benchmark. The evaluation of the internal quality management system is also much responsible for such preferences.

Marketing objectives

The key marketing objectives of this organization is to penetrate in the global market extensively (Zhu et al., 2014). It is being seen that majority of the e-cigarette manufacturers are having niche target market. This is one of the barriers in catering more number of audiences. This organization will target the untapped market and will cater to different customer segments. It will help them in having broader customer segments. Another objective of this organization is to introduce products in different price segments to cover the customer across every price segments (Smith, 2012). Till now, e-cigarettes are being limited to the higher end customers only. This organization will target to reach out to middle class population also.

Another objective of this organization is to provide a safer option compared to the conventional cigarettes. In the recent time, more number of peoples is being aware about the ill effects of the cigarettes and thus this product will be placed as a safer option over the others. Global presence is another marketing objective of this organization to be met (De Mooji, 2013). All the existing players in this sector are operating in their home markets or are being available only in a few countries. Marketing strategies of this organization will be implemented in such a way that it will help to place this organization as a global organization. Obtaining global identity will help to cater to more number of customers and increase in the goodwill and brand image.

Marketing actions

This organization will follow certain steps to implement their marketing plans in place (Armstrong et al., 2015). The first step will be about the market research. By conducting market research, target market and target customers will be identified along with the market trend and current expectation and requirement of the customers. Identifying these aspects will help the organization to offer the products accordingly. The next step will be competitor analysis. This is to be done to identify the benchmark in the market and the competitive advantages of the competitors. Analysis of competitors will help to initiate the pricing policy and to determine the strengths and weaknesses of them (Upson et al., 2012). Next step will be about selecting the proper and effective marketing channel for promotions. Promotional channels determine the effectiveness of the marketing campaign. Channel should be selected on the basis of their reach and cost effectiveness. At the initial stage, online marketing such as, social media marketing and presence in the e-commerce platforms will be initiated. This will help to reach out to more number of the customers in a short period of time and in less cost. Marketing with the help of social media will help to determine the customer review about the products and can modify the products accordingly. It will also help the organization in gaining an effective communication with the customers. This will eventually lead to generation of positive word of mouth.

Now the next step will be to determine the budget for implementing the marketing plan. All the steps for the marketing actions require allocation of financial resources. Thus, budgeting by the higher management will help to implement the plan accordingly. It will be done by the higher management due to the reasons that they will be more aware about the financial condition of their organization and the suitable amount of capital to be allocated by analyzing the market and the competitors. Then the marketing goal and objective as discussed earlier is to be initiated (Morgan, 2012). It will help the marketing executives in determining their responsibilities and the task to be accomplished. Marketing goals and objectives will act as the motivational tool for the executives and they will have the clear idea about the job to be done.

Now the last step is to evaluate the marketing plan or action. Evaluation of marketing plan helps in determining the effectiveness of the implemented marketing plan. It will be looked after by the organization about the performance or return given by the implemented marketing plan. Evaluation of the marketing plan will enable the organization to identify the shortcomings or the areas of improvement (Baker, 2014). It will provide the opportunity to rectify or overcome the shortcomings and implement the improved marketing plan. These are all the steps to be followed by this organization in order to effectively implement their marketing plan.

Global marketing issues

  • E-cigarettes are being marketed as a safer option over the conventional cigarettes. However, it still comprise of negative effects (Durmowicz, 2014). Several countries have already banned the sales of e-cigarettes. This will affect the growth policy of the organization. The marketing objectives of covering all the areas will also be hampered. The market will become small and chance of penetrating more in the new markets will be lower.
  • Promotional campaigning such as sponsorships of any events is being not allowed in several countries. Thus, the mode or option of promotional channels is being reduced. Lack of opportunities in promoting the product will affect the sales chart and the marketing objectives of the organization. Catering to more number of customers will also get affected due to the absence of the popular marketing campaign. Sponsoring any popular event help to reach out to more number of audiences where online marketing is still now not as effective (Cornwell, 2014). Hence, banning of this channel will have a negative impact on the marketing goal or objective of the organization.
  • It is been seen that there is a negative impression about the e-cigarettes in the global market. Thus, extensive marketing may increase the brand identity in the global market but it may not increase the sales and revenue from the customers.
  • Introduction of different legislations regarding e-cigarettes in several countries are also affecting the global marketing policy of the organization. Different types of rules and regulation is creating negative image for the products and also reducing the area of marketing and promoting the products.
  • Adhering to different rules and regulations in different countries will be a difficult task for the organization. Different countries have different approaches towards e-cigarettes and they have introduced legislation accordingly. Thus, complying with all the laws will pose a challenge for them in the global market.
  • E-cigarettes are being marketed as a replacement to the conventional ones (Trumbo & Harper, 2013). However, it is also been seen that, people having the addiction of conventional cigarettes will not be eager or willing to replace it with e-cigarettes. Thus the target market will become slower in the long-run for the global market.
  • Several countries have issues with the acceptance of the e-cigarettes in their society. E-cigarettes are being considered as more harmful and injurious for health than the conventional ones. Thus, marketing in this country will require an even more effort to penetrate in the market.

Limitations in implementing the plan

Implementing the above discussed marketing plan will obviously have positive impact for the organizations. However, it may have some limitations in the course of its implementations. One of the main limitations will be during conducting the market research. E-cigarettes are such a product which is having limited area of customers and there is an age limit. Thus, during the market research, response from the different age groups will be distinctive in nature and it will be a difficult task to come to a consensus from those. Certain benchmarks are already been created by the existing organizations which are having a good amount of market share. Meeting these benchmarks will be difficult task for a new organization in the market.

Another limitation for this organization will be regarding the promotional channels. All the existing competitors in the market are already covered the desired market through the use of different channels. Thus, promoting through the conventional channels will be difficult for this organization as because it will not get the desired slot and also may not afford the channel which can be afford by the established players in the market (Rosenbloom, 2012). Increasing the brand identity of the organization is also a difficult task for them. This is due to the reason that, established players in the market have already garnered a positive image and penetrating in their market will pose a challenge for this organization. Customers will obviously go for the established players rather than going for a newly introduced brand in the market. It will also their marketing plan for the global market.

This organization will also face difficulty in implementing the marketing plan in the overseas market. Absence of brand image will play a major role in restricting their effectiveness in the global market (Czinkota & Ronkainen, 2013). The established players in this market will have the desired brand value and amount of capital to penetrate and promote their products in the overseas market. However, it will pose a challenge for this organization to penetrate in the global market in the same way with having much less capital to spend and negligible brand value.


It has been specified that in current era of e-cigarette industry, the increasing level of the professionalism is much commendable. The analysis of the entire study provides the insightful ideas about the e-cigarette market. Considering the current situation in the industry, it has been specified that the industry needs to comply with more regulations imposed by the government. The FDA Center for the Tobacco Products needs to pay attention towards the regulations that ends the statutory definition of the tobacco products. ENDS manufacturers required registering with the FDA. The report needs to be presented by considering the proper ingredient listing. Associating the compliance team is quite beneficial for the company to bring the successful changes in the operating market. Meeting the rules and norms is essential to survive in this industry. The association with the internet and moil-order seller is needed to be complied with the proper rules and regulations. Such regulations are needed to be clearly aligned with the local jurisdiction. The companies even need to specify the awareness program that can ensure reduction of the harmful ingredients while manufacturing the tobacco products. The evaluation of the internal quality management system is also much responsible for such preferences. The cooperation with the international brands is also highly recommended. The actions are generally undertaken for setting the high standards of the company in current business market. In addition to this, it can be inferred that the use of the scientific process for manufacturing the tobacco products would be much beneficial for ensuring the harmless attempt of selling e-cigarettes. The development of the R&D department would also be beneficial in improving the quality parameter of the organisational functionalities. The continuous improvement and involvement of the government regulations can bring the expected changes in the e-cigarette market.  


Thus, it can be concluded from the business plan that if the company follows all the process in an effective manner then it should be able to gain profit over the other companies in the present market. There are some back up plans, which the company has created which will help in disaster management. There are large numbers of companies that have faced a lot of issues regarding the restriction posed on the various companies in this sector so the company has made proper arrangements so the any risk factors can be avoided or mitigated.

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