The document discusses the market potential for herbal cigarettes in India. It notes that India has over 250 million smokers and tobacco cigarettes generate over $2 billion in revenue annually. Herbal cigarettes could provide smokers with an alternative that does not pose health risks like tobacco cigarettes and allows smokers to continue their habit. The document then outlines a marketing strategy for herbal cigarettes in India, including segmentation, targeting, positioning, product details, pricing, placement, and promotion strategies. It also discusses competitors in the tobacco cigarette market and concludes that herbal cigarettes called "Herbettes" could capture market share from tobacco cigarettes while improving public health by providing a safer smoking alternative.

1. By: Monika

2.  Market Potential in India
 The third largest market for cigarettes in the world
 Potential Customers: According to the latest Health ministry data to 250 million smokers in
India
 One of the few countries in the world where sale of cigarettes has increased even during
recession
 An estimated 102 billion cigarettes are sold every year, generating revenue of nearly 150
Billion Rs
 A habit that kills an estimated 1 million people every year
Benefits to the smokers who shift from tobacco smoking to herbal cigarettes:-
Better quality herbal products
No Health Risks
Continuation of the Smoking Habit without much spending on Health related Maladies

3.  To make smoking completely safe and harmless without or products. To enrich
customer lives by generating superior products and promoting healthier lifestyles.
We are also faithful in our commitment to social responsibility, contributing towards
social change through our commitment to socially responsible practices and will
continue to strive for excellence in our endeavor to provide healthy alternatives to
harmful product consumption.
 In short: “SMOKING IS INJURIOUS TO
HEALTH”. Our mission is to make this
statement a thing of the past.

4.  Herbal cigarettes do not contain any tobacco or nicotine, so no
health risks.
 They are used as a substitute for standard tobacco cigarettes,
mainly as an aid for people who try to quit smoking.. They usually
contain caffeine and other stimulants.
 Because they don’t contain tobacco, they can be sold legally to
smokers of any age.
▪ Continuation Of the Smoking Habit without much spending on Health
related Maladies
.

6.  Government ban on smoking in public places.
 The number of deaths from tobacco smoking is expected to reach as high as
1 million in 2010
 Increasing number of young smokers in India
 Need felt for a healthier alternative
OUR PRODUCT:
 Can present itself as a viable and safe alternative to harmful cigarettes
 Can target the entire smoking population as well as the youth segment , as
it does not contain nicotine

7.  Segmentation:
 Geographic – Urban and Rural
 Psychographic – Lifestyle
 Targeting:
 Customer may belong to any legal age group.
 The Upper Middle Income Households
 The climbers and switchers
 Positioning:
 The Brand will be positioned with two celebratory statements:
“Smoke the health Way” and “Celebrate Health with a Smoke”.

8.  Product: Product Variety-flavours
 Price: Keep it costly, make it exclusive
 Place: Waterfall approach
 Promotion: Be Visible EVERYWHERE
 Sponsorship of health drives, tie ups with smoking
de-addiction centers for selling the product as an
alternative to normal cigarettes.
 Below the line promotions

9.  Association with organizations like Cancer
Aid Society and Cancer Concern
 Tie ups with de-addiction centres
 Donation to specific causes
 Promotion of “Quit Harmful Smoking”
campaigns
 Support of Behavior Change campaigns

10. National competitors:
 ITC commands around 70% of India’s Rs 150 billion Cigarette
 Godfrey Phillip India (GPI)- a 13% market share
 Vazir Sultan Tobacco (VST) – a 13% market share
 Golden Tobacco Company – 8% market share.
 Local Competitors in Tobacco Cigarettes Category (various states):
 Kanhayya Tobacco
 MR Tobacco
 Sapna Enterprises
 Sudarshan Tobacco

14. On the basis of our study, we believe “Herbette” will be a revolutionary
product. Keeping in view - the untapped market, macro environment
and customer needs, this product has all the potential to deliver great
benefits to its consumer and generate huge profits for the company.
With smokers who aren’t ready to quit and are open to substitutes which
eliminate the risk factor but give the same amount of pleasurevalue
factor – Herbettes (Herbal Cigarettes) is ready to completely replace
tobacco cigarettes. This will not only capture the major market share of
smokers but also curb the tobacco smoking related mortality. Herbettes
can prove to be a life savior. It is the Next Big Thing. The shift to a
healthier substitute would help people get over the tobacco smoking
(nicotine content smoking) addiction & that too in a healthier and
harmless way.