The e-cigarette market is rapidly growing, with significant sales expected, especially in the United States and Europe. Despite being marketed as a healthier alternative to traditional cigarettes, concerns about their health impacts and increasing regulation pose challenges for the industry. E-cigarette companies are exploring various marketing strategies to attract smokers, emphasizing product convenience and reduced stigma around public use.

1. E- Cigarettes Marketing Analysis
The e-cigarette industries have been on the worldwide market for over seven years and in the
Unites States market for about four years. The electronic cigarette market is a fast growth industry with
significant sales opportunities. Now, in Europe is estimated to be worth more than $650 million a year
and $1.7 billion market this year in United States, according with the Wall Street analysts predict.
The e-cigarette has a significant accelerated because of the advances in technology and quality,
and is continue to garner recognition in the market and will continue to expand exponentially. Based on
the following two articles: European Lawmakers reject tight restrictions on e-cigarettes and the e-
cigarette industry waiting to exhale by The New York Times and also in others researches the strengths
of entering the e- cigarette market are:
The e-cigarettes produce vapor instead of ash or smoke. They also generally deliver lower
amounts of nicotine than conventional cigarette a feature that may make e-cigarettes useful as an aid to
smoking cessation. One scientific study published in British medical Journal, found that six months into
smoking e-cigarettes, 7.3 % of users had quit smoking tobacco. In addition, Nathalie Walker, director of
addiction research at the National Institute for health innovation in New Zealand, thinks that e-cigarettes
have potential as “another tool” and notes that they have a crucial advantage over other nicotine
replacement strategic.
Also, the company’s are becoming better at imitating, along with changing the chemistry inside
the e-cigarette so that nicotine is absorbed more quickly by the body, more like the real thing. Besides,
the e-cigarettes are more convenient than cigarettes, if you compare the nicotine content. The NJOY
King, which sells for $7.99, is disposable and tries to deliver as much nicotine as a pack of 20 cigarettes;
other kinds of e-cigarettes are rechargeable, their nicotine fluid refills costing around $3 or $4.
Moreover, the e-cigarettes could “solve the social stigma issue” and erase the tension of smoking
in public places, according to MurrayS. Kessler, the C.E.O of Lorillard, which sells Blu (one of the most
representative e-cigarettes company’s).
E-cigarette companies, unlike tobacco companies, can sponsor sport and entertainment events, or
advertise on television. As Keith Richards at a Rolling Stones concert last year, Jenny McCarthy at a
television commercial, or advertising in Super Bowl that prompted a 40% uptick in sales in the five
markets where it ran.

2. On the other hand, the e-cigarette industry has to grapple with serious concerns, Scientifics are
not certain of the health impact of using e-cigarettes or of inhaling secondhand vapor. “There is still so
much that is unknown about the effectiveness and long-term effects of e-cigarettes” that more research
is “urgently needed”, cautioned lead researcher Chris Bullen, director of the National Institute for Health
Innovation at the University of Auckland in New Zeland1
. Also, other several aspects appear like most of
the people who use e –cigarettes also continue to use regular cigarettes, they are duals users. That
means they are probably suffering all the risk from smoking said Stanton Glants, director of the University
of California, San Francisco’s Center for Tobacco Control Research and Education.
The e-cigarettes regulations are an important issue in this industry, the European Parliament
endorsed limits on sponsorship and advertising of e-cigarettes, and on their sale to minors. Dr McAfee
saw the numbers: among students in grades 6 to 12, experimentation with e-cigarettes had doubled, to
6.8% from 3.3%. The numbers were higher among high school students, 10% of whom reported trying
an e-cigarette, more than double the share in 2011. One of the strongest predictors of the whether
someone become a lifelong smoker is how early he or she start experimenting. The push for regulations
is coming from different people that want to encourage the companies do not continue to sell or advertise
to the nation’s youth.
Marketing Plan E-cigarettes
Situation Analysis.
Market Information2
 Market E-cigarette
The electronic cigarette market is a fast growth industry with significant sales opportunities. The
industry is appealing from a business standpoint as it boasts strong profit margins, repeatable purchases
on a regular basis, and rapid growth potential, as more people are made aware of the product. Current
advances in technology and quality of product have greatly accelerated the product category, and as it
continues to garner mainstream recognition the electronic cigarette market will continue to expand
1
Electronic Cigarette- smoking nicotine. National Geographic Magazin.
http://news.nationalgeographic.com/news/2013/09/130915-electronic-cigarettes-smoking-nicotine/
2
Electronic Cigars and cigarretes. The market, demand, and the need, American Heritage Revolution.
http://www.americanheritagerevolution.com/pdf/AHR-Electronic-Cigarette-Brochure.pdf

3. exponentially. The market is unique, in that it is created by the vast and expanding demographic of
tobacco cigarette market, of which its users inevitably look for an alternative to smoking tobacco
cigarettes.
 Tobacco Market
Currently, the tobacco cigarette market is a $600 billion dollar a year industry, with over 1.2 billion
smokers worldwide and over 6 trillion cigarettes sold. Despite strong anti-smoking campaigns, this is an
increase from 2002 where there were only 1.1 billion smokers smoking 5.5 trillion cigarettes. Over the
next ten years, the industry for tobacco cigarettes is expected to increase to over 1.7 billion smokers
worldwide, creating a $900 billion market. Phillip Morris alone sold over 235 billion cigarettes for a profit
of $3.3 billion in 2009.
 Market need
Healthier alternative to smoking. There are approximately 300,000,000 people in the United States, with
approximately 28% or 84,000,000 of the population classified as active cigarette smokers. Some
resources have this number much higher when including; Pipe Smokers (2%), Cigar Smokers (10%),
Social Smokers (5%), & Closet Smokers (5%). The health issues related to smoking cigarettes are well
known, with approximately 1500 people dying every day or 500,000 people dying every year in smoking
related illnesses in the United States alone. Despite the evidence, the number of new tobacco cigarette
users increases. 95% of all smokers say they would like to quit, 60% actually try quitting, and it generally
takes more than one try and effective alternative delivery systems of nicotine to achieve success. In 2009
there were an estimated $460 million worth of Nicotine substitutes imported to the United States. There
were also over $500 million of products produced in the United States and marketed as smoking cessation
aids- a cumulative market of over $1 billion for smoking alternative and nicotine delivery products in the
United States alone.
 Market Trends
Initially, the primary distribution channel for the electronic cigarette market is the Internet and
direct to consumer marketing. As the product is now gaining mainstream awareness, more smokers are
trying and accepting e-cigarettes as an alternative to their tobacco cigarettes. Electronic cigarettes are

4. now found at more and more convenience stores and independent retail outlets. Mass retail is aware of
this, and adoption of the product is underway.
As it begins to finds its way into mass retail acceptance, the electronic cigarette industry will
become a billion dollar industry in 2012. Insiders predict that the market will be a minimum $6 billion a
year industry by 2016.
 E-cigarettes sales
This chart show the sales of e-cigarettes from 2008 until 2013. They report a sales growth trend over
the past five years.

5.  SWOT Analysis
 Competitors
These are the top five competitors in e-cigarettes in the market according with an electronic
cigarette reviews3
:Smoke Tip Ecig, South Beach Smoke Electronic, V2 Cigs Review, The safe Cig E
cigarette and Blue Electronic.
3
Lean which e-cigarettes other smokers enjoy and why. www.electroniccigarette.net.
Strengths
The e-cigarettes is a fast growth industry with $1.7
billion market in United States.
The e-cigarettes produces vapor instead of ash or
smoke.
The e-cigarette can use as a nicotine replacement
strategic.
The e-cigarettes are more convenient than cigarettes.
The e-cigarettes can solve the tension of smoking on
public places.
The e-cigarettes can sponsor entertainment and sport
events, and advertise on television.
Weaknesses
Scientifics are not certain of the health impact of using
e-cigarettes or of inhaling secondhand vapor.
More reasearch is urgently needed, is necesarry to
know the real effectiveness and long effects of e-
cigarettes.
The distributtion of e-cigarettes is limited. The
consumers just can get the products online or in
specialized stores.
The consumer does not has the opportunity to try the
product before the purchase.
Opportunity
1.2 billion smokers in the world who will become
potencials user of electronic cigarettes.
Opportunity to expand the market in other continents
like Latin America, Asia and Africa.
Threat
Electronic cigarette legislation and public health
investigations are currently pending in many countries.
The push for a tight regulation that can control the
sale, distribution and promotion of e-cigarette.
The e-cigarette industry can't sponsor sports and
entreiainment events or advertise on television,
because of the regulations.

6. Marketing Strategy- X-ecigarrete
Target market
The target consumer of a new e cigarette company is men and woman over 18 year, living
within the mid-high scale suburban mix community. Whom are retirees, professionals,
employees and students who have a particular taste for cigarette and are active or potentially
smokers.
Marketing Mix variables
Product
The x-ecigarette e-cigarette is designed in two pieces, with steam top volume and a good battery
life. X-ecigarette comes in different forms and flavors. The packs come with 4, 8 and 12 units. And the
flavors range from regular mint, vanilla, strawberry, blueberry and chocolate.
Distribution
The distribution of X-cigarette is mainly through the website, but we also want to expand our
distribution in almost all super-markets, chains and pharmacies discounts: such as Wal-Mart, Target,
Walgreens and CVS. The X-cigarette can be located in the cigarette isle of store next to the traditional
cigarettes.
Promotion
The e -cigarettes advertisements and promotions are located in a targeted media selection that
appeals to the target consumer.
Website: is the primary means of selling the product. They want to create an interactive website
for consumers. On the website you can find the description and characteristics of each of the products.
Similarly, through the website you can make the purchase. To encourage buyers must register as users,

7. through which they can participate in monthly promotions. Also, we point accumulation program for your
next purchase. The web site must be designed to have a person who is available to consumer questions
and answers, in an online chat. The e- cigarette might have social media like Facebook page, where each
week there is an update of the business, from the latest research and new products and promotions to
acquire.
Coupons: X -E cigarettes have weekly printable coupons online in the special offers section of the
website.Free product samples: many consumers do not know how to operate the e-cigarettes. Therefore,
it is important to provide the consumer an experience before purchase. Free samples will be available
online, for new and first customers. Similarly, demonstration and product test in malls. Where, consumers
have easy access to free demos.
Referral Program: as a measure to increase sales, be granted an additional 5% on the purchase
of e -cigarette for every 3 referrals
POP material at the point of sale, advertising attractive outlets, who can also provide information
on the features and benefits of the product.
Price: X-ecigarette is a product of easy access and high quality, the price of the product can be
positioned around $ 41 to $ 50 according to an average realized between the major brands of e-
cigarettes.
Karime Perchy
Marketing Mid-term Exam