Comprehensive Marketing Plan for Green Smoke Electronic Cigarette
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Comprehensive Marketing Plan for Green Smoke Electronic Cigarette
Shavona Brissette, Kevin Kuhle, Kira Covill, Ottis Hall, Cortney Gill
GRAND CANYON UNIVERSITY
Comprehensive Marketing Plan for Green Smoke Electronic Cigarette
1.0 Executive Summary
1.1 Introduction
A review of comparative figures of other E-cigarettes companies in 2010 show that Green Smoke Electronic Cigarette holds a small edge in the industry. Our loan to deposit ratio is at 72% and is an acceptable level within the industry guidelines. Despite having a small edge over the competition Green Smoke must stay at the forefront of marketing so that we can maintain this lead and try to continue to build a strong consumer following.
Green Smoke will make the needed adjustments to its short, medium and long range market strategies as they are needed. Smoking traditional cigarettes and cigars is a dying industry and more and more people are looking for ways to quit; as well as alternatives, to traditional smoking. Green Smoke can position itself as the best company to fulfill these needs. There is a strong desire from the public to promote green technologies and Green Smoke Electronic Cigarette Corp with their alternative to smoking can position itself towards this trend.
Green Smoke has taken a painstaking look at both the internal and external industry environments. While the internal analysis examination has included an investigation of; management, staff, infrastructure, delivery capabilities, and our customers, the external analysis includes market, competition and a complete look at the macro environment.
A “SWOT” examination has been done to identify our strengths and weakness showing opportunities and threats to our company. This analysis has determined that company existing market strategy must be refocused and perhaps repositioned in order for Green Smoke to maintain and expand its existing position within the market. We should not ignore our existing market of the “Stop smoking” crowd but should expand our current market standing by targeting new areas and repositioning ourselves to a trend of “a new kind of smoker”. This strategy will ensure a long product life span. We should not ignore the trend in society of “green technologies” and Green Smoke has the right product name, mix of products and timing to take advantage of this.
We truly believe that with the right mix of new and old market strategies and positioning we will be able to achieve the stated objectives.
1.2 Purpose and Objectives
The purpose of this paper is to guide Green Smoke through a course that will allow us to secure the required funds for the needed movements of positioning and repositioning of our products while at the same time strengthening of current position within the industry well into the future. In order to accomplish these goals Green Smoke needs to focus in the following areas:
Retain existing customers
Bring in new customers
Raise 25 Million dollars in gross profit over the next 5 years
Increase our market share from 25% to 35%
Maintain a loan deposit of 80%
Increase profits from 10%, to 30% by 5% increments over the next 5 years in order to increase ROA
In order to accomplish such goals Green Smoke has identified a variety of strategies which is designed to bring about success.
2.0 Analysis of the Environment
An analysis has occurred on the external and internal environments of Green Smoke to employ strategies necessary to carry out the objectives.
2.1 External Analysis
We have started a “macro- environment” external analysis of our industry and target consumer.
2.1.1 Macro-environment
2.1.1.1 Demographic, Cultural and Social
In order to understand the demographics of the people who want to stop smoking, we first must understand the demographics of the people who do smoke.
So to begin with we find that people who smoke have different levels of education:
The American Heart Association has reported that the more educated people are the fewer of them smoke. Statistics show that 35% of people with between 9-11 years education smoke while the more educated, those with 16 or more years of education smoke less than 12%.
Income seems to have an effect on those who smokes as well. It has been shown that 33% of all those living below poverty level smoke cigarettes whereas 24% of the people who live above the poverty level smoke. (Quit Smoking Hub) show studies that indicate in the United States about 26 million men or 25.7% smoke cigarettes and about 23 million women or 21% smoke.
People who smoke can be broken into the following ethnic groups:
*26% of Caucasian men smoke while 22% of Caucasian women smoke
*29% of African Americans men smoke while 21% of African American women smoke
*24% of Hispanic men smoke while 12% of Hispanic women smoke
*41% American Indians men smoke while 41% American Indian women smoke
The first time users of cigarettes have increased 30% which includes ages 12-17 years old. Each day over 6,000 users under the age of 18 years smoke a cigarette each day. Council on Disease Control (CDC) says that 80% of smokers began before the age of 18 years.
Smoking can also be broken down into geographical demographics. It appears that people living in Nevada, Kentucky and Ohio have the highest rates of smokers between 28% and 32%. And it seems that if you live in Utah, Hawaii or California then you are the least likely to smoke with percentages slightly above 13%.
The American Council on Science and Health (ACSH) state cigarette smoking is the primary cause of avoidable deaths. 500,000 deaths per year can be attributed to cigarette smoking. Smoking has an effect on strokes, and coronary heart disease, cancer as well as been linked