Company Introduction, Market Segmentation

Market Segmentation, and Product Positioning Keenan Pierson Dry. Steven Englander Marketing October 28, 2013 A. The Company Smart Option e-cigarette Is a metal rechargeable electric cigarette brand, Glenn smokers an alternative smoking option to conventional tobacco products. Smart Option takes pride in putting an emphasis on making its e-cigarette as close as possible to the weight, size, feel, flavor and inhalation of real cigarettes. Targeting seasoned smokers, Smart Option e-cigarettes produce non-disposable smoking products.

The Smart Option e-cigarette kit comes with an atomized plus a cartridge tit a flavor enhancer. Consumers enjoy the brand's option of varied flavor enhancers but is popular, more so, because Smart Option Is known for its longer- lasting batteries. Popular, trendy and well-established, the Smart Option brand desires to expand to Include the Smarts compatible rechargeable cartridges and chargers. Smart Option was established In 2010 and Is headquartered In Atlanta.

Keenan Pierson Is the SSP of Product Development, spearheading the brand's technological advance. Smart option's strategic mission statement Is "To provide a great price for the sophisticated smoker, focusing on quality and increased accessibility. " Foreign Market Cigarette use is the largest segment of the tobacco market In Russia, accounting for 98 percent of the market's total value (Russia, 2013). E-cigarette use in Russia is a means for controlling smoking ("Popularity," 2011), and its popularity is growing there as well.

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Smart Option consumers primarily are based in the United States, but Smart Option sees an opportunity to expand the brand as it prepares to launch the Smarts component. Currently, the majority of electric cigarettes enter the Russian market from China (Research and Markets, 2012). Increasing exports will help grow the brand. With Smarts compatible rechargeable cartridges and chargers, the goal Is to pioneer and capture significant market share through a sense of necessity from consumers in the U. S. And abroad, creating brand loyalty. B. Marketing Plan smoker.

It has the look of classic cigarettes with an excellent nicotine delivery system. Consumers enjoy its variety of forms, its battery life and ease of use. The Smart Option e-cigarette brand is the solution for the long-term consumer seeking a premium product. While priced slightly higher than competitors selling disposable reduces, the Smart Option e-cigarette kit is equivalent to receiving up to three packs of conventional cigarettes above the standard two. Smarts compatible rechargeable cartridges and chargers will be for consumers looking for the longer investment in the e-cigarette.

Smarts will provide the best and most technologically-advanced electronic cartridges and compatible chargers in the industry. All e-cigarette brands are battery operated. Presently, consumers of e-cigarettes have to be loyal to their brand because rechargeable cartridges and chargers are not versatile, meaning that chargeable cartridges are not compatible with each other. There are so many electric cigarettes available that it may be difficult - and expensive - for the consumer to determine which brand satisfies their tastes.

The consumer also must find the store that sells their preferred brand. With Smart Option's Smarts compatible rechargeable cartridges and chargers, consumers no longer have to commit. The product and the service component of the Smarts compatible rechargeable cartridges and chargers will drive sales. Smarts will be bundled with the existing Smart Option products and sold separately to attract users of competing eggs. Like most cartridges, the Smarts compatible rechargeable cartridges include miniature lithium batteries. Smarts is unique because its 4. -volts also contain a small universal adapter for compatibility with other brands, creating an "android" mechanism for use across all brands of e-cigarettes. A unique feature of the Smarts compatible rechargeable cartridges includes longer-life batteries, which has made Smart Option popular among consumers. As an enhancement, the Smarts battery will automatically go into standby mode when not in use to preserve its life. The product and the Smarts compatible rechargeable cartridges and chargers will be expensed through vending machines and will be widely available at gas stations and convenience stores.

Consumers will see the cost savings over time, enjoying the versatility of the Smart compatible rechargeable cartridges and chargers, making the overall product and its service even more attractive. A report from the Centers of Disease Control and Prevention finds that one-fifth of Americans - about 46 million - are still smoking ("The Electric Cigarette," 2010). Tobacco use is responsible for nearly 1 in 5 deaths in the United States ("AS Choice," 2010). Users of conventional cigarette make are responding to the rise in health risk awareness, using e-cigarettes as a healthier alternative.

Currently it is estimated that 1 in 40 smokers are now using e- cigarettes as an alternative ("The Electric Cigarette," 2010), and the trend is growing at phenomenal speed. E-cigarettes have three basic components: a battery, an atomized and a mouthpiece cartridge. E-cigarettes deliver nicotine without the harmful toxins found in tobacco smoke yet creates the same hand-to-mouth experience. Instead of lighting up, an electric cigarette has a cartridge that resembles a filter that heats nicotine into a vapor. An LED light glows at the tip during the inhale, simulating the glowing tip of a regular cigarette.

It is a safer alternative to smoking, and reduces secondhand smoke exposure since they do not produce smoke. E-cigarettes are sum, e-cigarettes are a smarter smoking solution. E-cigarette users are "vamping" rather than smoking. The sale of e-cigarettes is a niche business that is a growing segment of the tobacco industry, although no tobacco exists in eggs. Created in 2003 by a Chinese pharmacist, the segment is emerging, and it is estimated that about a million people used electric cigarettes (Seltzer, 2011).

Word about the product is spreading as consumers are becoming educated about the dangers of tobacco use and about the availability of smoke-free alternatives. Increased accessibility and universality will help the industry continue to grow. The Smart Option e-cigarette tastes like a real cigarette and offers a variety of cigarette flavor enhancers, including a nicotine-free version. Smart Option focus groups revealed that consumers are attracted to the brand's Smart LED and the option of purchasing higher capacity batteries but expressed frustration over their inability to use e-cigarettes interchangeably.

Smart Option's answer is a universal battery-operated rechargeable atomized cartridge and charger. Smarts compatible rechargeable cartridges and chargers will offer various charging options such as car chargers. Consumers have found problems with the taste and reliability in their search for the preferred e- cigarette. Neither cartridges nor chargers are interchangeable, making it difficult - and expensive - for the consumer to determine which brand satisfies their tastes.

Smarts compatible rechargeable cartridges and chargers will provide consumers with a plethora of options and alternatives to enjoy the brand of their choice. No other brand or innovation currently exists to cater to e-cigarette users who want that versatility. There are different sizes of batteries in varying brands of e-cigarettes. The convenience and instant gratification of purchasing the Smart Option e-cigarette and/or purchasing the Smarts compatible rechargeable cartridges and charger is effective to drive growth and will strengthen market share.

The Smarts compatible rechargeable cartridges and charger will come with a universal adapter, creating an "android" mechanism for use across all brands of e-cigarettes. Consumers also will enjoy the system's longer-life rechargeable cartridges, eliminating the hassle of purchasing several devices in search of the desired taste and nicotine strength. Getting buy-in from the skeptical consumer will be a challenge to overcome since a weakness from competitors is weaker battery performances.

The widespread smoking prohibition, not to mention the increase in taxes, and growing social stigma of conventional cigarette smoke creates opportunities for the e-cigarette market. Convenience stores have seen a reduction in retail sales, resulting in lower profit margins from selling conventional cigarettes. Unlike conventional cigarettes, tobacco taxes do not exist because there is not tobacco in the product, making it an affordable alternative for consumers. Electric cigarettes offer convenience stores lower taxes and much higher profit margins.

Imposing additional cigarette-specific taxes on the sale of e-cigarette products would be a threat as it would lessen the number of consumers willing to buy the products. Smart Option e-cigarette brand is plentiful and diverse, and the goal is for the Smarts compatible rechargeable cartridges and chargers to be as well. Consumers experience a relaxing and licensable feeling with each Smart Option smoke that they perceive as positive and satisfying. The aim is to position the product and service as more than an e-cigarette this push will come in the form of heavy promotional spending.

New technologically- savvy vending machines will be Smart Option's way to sell the product, making it a standout brand. Each vending machine will have an online hub with up-to-date e- cigarette Smart Option brand information as an example of such marketing. APS accessible from smart mobile phones will support consumers' need to get the latest reduce information, including GAPS capability to provide nearest locations. The Smart Option e-cigarette brand has a reliable website with an easy-to-use menu for online transactions by credit or debit.

This will provide the best possible option for delivery for the Smarts compatible rechargeable cartridge and charger. Wide accessibility in brick-and-mortar stores such as gas stations, convenience stores, grocery stores, drug stores and big box retailers, will help diversify and increase sales distribution. Smart Option e-cigarette and the Smarts compatible rechargeable cartridges will be the best option for the lowest price possible. The brand and supporting devices will deliver more enriched quality and versatility to consumers.

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