2. Disclaimer
• This presentation on nicotine products provides general information
for educational purposes only and is not a substitute for professional
advice. Users are encouraged to consult healthcare professionals and
stay informed about local regulations regarding nicotine use.
3. What is Velo?
• Velo Overview:
• Modern Oral brand by British American Tobacco (BAT).
• Leading global nicotine pouch brand, debuted on Dec 20, 2019.
• No direct rivals.
• Flavors: Berry Frost, Polar Mint; Strength variations: maximum, strong, medium.
4. • Strengthened by BAT's proprietary nicotine delivery tech and unique
design.
• Offers a unique experience, outperforming competition in aroma,
flavor, and satisfaction.
• Introduction under PTC:
• Introduced by BAT under Pakistan Tobacco Company (PTC).
5. Vision:
“Like a lighthouse in a dark, stormy sea... Our vision serves as a beacon
of light and hope, helping us navigates the waters”
MISSION STATEMENT:
“Transform PTC to perform responsibly with the speed, flexibility and
enterprising spirit of an innovative, consumer focused Company”
STRATEGIC OBJECTIVES:
“Our strategy reflects our vision of being the champions of Growth,
Productivity, Responsibility and a Winning Organization”
7. SWOT analysis of PTC w.r.t Velo
Strength
Dominant Market Position:
• PTC holds a dominant position relative to competitors.
• Encompasses significant market share.
Size and Workforce:
• Large size evident in the workforce, profitability, and goodwill.
• Over 1000 employees in the Akora Khattak branch.
Profitability and Innovation:
• Profitability contributes to PTC's strength.
• Velo Pakistan, an innovative nicotine patch, adds diversification and innovation.
Local Employment Contribution:
• PTC significantly contributes to local employment.
• Offers job opportunities to skilled and educated youth.
Product Portfolio Versatility
• Production of various cigarette brands showcases versatility.
• Velo Pakistan addresses diverse consumer preferences.
8. • Weaknesses:
• Relatively Smaller Market Share:
• PTC faces a smaller market share, especially compared to Lakson
Tobacco Company.
• Lack of Employee Refreshment System:
• Absence of a well-structured system for employee refreshment is a
noted drawback.
• Challenges for Velo Pakistan:
• Velo Pakistan may encounter challenges in market acceptance and
potential competition in the nicotine patch sector.
9. • Opportunities:
• Vast Market Opportunities:
Despite weaknesses, PTC, with innovations like Velo Pakistan, has vast
opportunities in the current and future market.
• Diversification through Velo Pakistan:
Velo Pakistan contributes to diversification of PTC's product line.
• Skill Enhancement and Employment:
PTC provides opportunities for skill enhancement and employment,
leveraging its substantial market share and customer base.
• Government Initiatives for Expansion:
Recent government initiatives inspire plans for expanding operations, with
potential for increased investment in traditional and innovative offerings.
10. • Threats:
• Competition from Lakson Tobacco Company:
Robust competition from Lakson Tobacco Company poses a primary
threat to PTC, requiring strategic focus on marketing and sales.
recently launched ZYN nicotine pouches in competition to velo
• Emerging Competitors for Velo Pakistan:
Velo Pakistan faces potential threats from emerging competitors in
the nicotine patch sector, necessitating a proactive approach to
marketing and product positioning.
11. Velo's Positioning
Fundamentals:
In the market landscape, this positioning sets Velo apart from
competitors, catering to consumers seeking not only a
nicotine solution but also a brand that resonates with their
lifestyle choices.
12. • Differentiation:
• Positioning as a quick and hassle-free nicotine solution.
• Emphasis on 'anywhere, anytime' usage sets it apart from
traditional tobacco.
• Target Audience Understanding
• Showcasing versatility and portability for modern consumer
lifestyles.
• Sheheryar Munawwar's portrayal reflects a deep
understanding of consumer preferences.
• Unique Selling Proposition (USP):
• Safety and cleanliness as the USP.
• Claim of 'no smoke, no smell, no tobacco' appeals to health-
conscious consumers.
• Emotional Connection:
• Presented as a fashion icon and lifestyle product.
• Sheheryar Munawwar's endorsement associates Velo with
sophistication and modernity.
• Celebrity Endorsement:
Leverages Sheheryar Munawwar to reinforce the
brand's image.
Aligns with the fundamental use of influential
figures for relatability.
• Consistent Messaging:
Reinforces the message of Velo as a quick and
stylish nicotine solution.
Builds a coherent brand image in the minds of
consumers.
• Perceived Value:
Positions itself as a functional and stylish product.
Adds value beyond utility by becoming a fashion
statement.
• Integration of Lifestyle:
Seamlessly integrates into modern lifestyles.
Emphasizes relevance in various social and
professional settings.
14. • Human Attributes:
• Outgoing:
• Aligned with sociable individuals.
• Emphasized through social interactions in marketing.
• Extrovert:
• Exudes extroverted characteristics.
• Suggests compatibility with vibrant and energetic social environments.
• Creative:
• Associated with creativity and innovation.
• Reflects a preference for artistic expression and dynamic experiences.
• Living Openheartedly:
• Implies a lifestyle lived openly and without reservation.
• Portrayed through a lavish lifestyle, extensive travel, and lively event participation.
16. PRIMARY AUDIENCE:
• A company's primary target audience is the group of clients it believes
it has the best chance of
• converting. Velo’s primary target audience is shown in the table
below:
17. SECONDARY AUDIENCE:
• The secondary target audience refers to the second most important
consumer that a company will
target. For Velo, these include:
18. Implications for Marketing Strategy:
• Velo's deliberate choice of a gender-neutral approach ensures
inclusivity, appealing to a diverse audience.
• The focus on middle-aged working individuals aligns with the
brand's portrayal as a sophisticated and convenient nicotine solution
for those with busy lifestyles.
• The inclusion of a secondary audience of young adults and students
suggests a strategic approach to capturing a potentially lifelong
customer base by introducing the product at an earlier stage.
19. VALS Framework Analysis for Velo
• The VALS (Values,
Attitudes, and Lifestyles)
framework categorizes
consumers based on
psychographic factors,
offering insights into
their values and
behaviors. Here's how
Velo aligns with different
VALS segments:
20. • Implications for Marketing Strategy:
1.For Innovators, marketing efforts highlight Velo's innovative features and its
role in transforming nicotine consumption.
2.For Believers, the continued use of celebrity appeal and fashionable imagery
in advertisements aligns with their preferences and influences their purchasing
decisions.
3.For Achievers, marketing emphasize Velo's positive impact on productivity
and highlight its role in bringing about a positive change in lifestyle.
4.For Experiencers, campaigns should focus on the versatility of Velo,
positioning it as a trendy and socially acceptable choice for various experiences.
22. PRODUCT
• Revolutionary Non-Tobacco Nicotine Pouch:
• Quick and Hassle-Free Fix:
• Engineered for a rapid and uncomplicated nicotine fix.
• Seamless and convenient alternative to traditional smoking.
• Safety and Health Consciousness:
• Positioned as a safer option than conventional cigarettes.
• Appeals to health-conscious consumers.
• Flavor Variety:
• Diverse range of flavors (Polar Mint, Berry Frost).
• Caters to different taste preferences.
• Nicotine Strength Options:
• Various nicotine strengths (6mg to 14mg).
• Labeled as max, medium, and strong for easy selection.
23. Place: Strategic Distribution for Maximum Reach
• Online Presence:
• Prominent feature on Velo's Online Store.
• Convenient online purchases for tech-savvy consumers.
• 2. Local Tobacco Shops:
• Strategic placement in every local tobacco shop.
• Broad distribution network for widespread availability.
• 3. Strategic Partnerships:
• Collaborations with Goldleaf and Dunhill.
• Leverages parent company's network for optimized distribution.
• 4. Distribution Channel Benefits:
• Shared distribution with Goldleaf and Dunhill.
• Cost-effective strategy, avoiding the need for a new network.
• Enhances financial efficiency of the brand.
24. Price: Navigating Diverse Market Conditions
• 1. Market Challenges:
• Diverse income structure and economic instability posed pricing challenges.
• Varied income levels complicated the establishment of an optimal pricing strategy.
• 2. Introductory Price Adjustment:
• Initial pricing set between PKR 170-200.
• Received negative response from the target audience.
• Mismatch with local market preferences and expectations.
• 3. Production Shift for Competitiveness:
• Strategic shift of production from Europe to Pakistan.
• Aimed at capturing the market and enhancing competitiveness.
• Reduction in production costs enabled a more competitive pricing strategy.
• 4. Current Pricing Strategy:
• Adjusted pricing to a range of 90-110 PKR.
• Reflects successful adaptation to local market preferences.
• Appeals to a diverse consumer base, enhancing product suitability and attractiveness.
25. Promotion: Crafting a Brand Narrative in a
Challenging Environment
• 1. Marketing Approach:
• Significant budget allocated for effective promotion despite tobacco advertising bans
in Pakistan.
• Unique product positioning allowed successful navigation of regulatory restrictions.
• 2. Direct Consumer Engagement:
• Utilized sales representatives for direct engagement with consumers.
• Initial distribution of free samples to allow firsthand product experience and foster
positive responses.
26.
27. • 2. Celebrity Endorsement:
• Renowned actor Sheheryar Munawar endorsed Velo, transforming it into a fashion statement.
• Influenced consumer choices and strengthened brand appeal.
• 3. Direct Consumer Engagement:
• Utilized sales representatives for direct engagement with consumers.
• Initial distribution of free samples to allow firsthand product experience and foster positive
responses.
• 4. Velo Sound Station:
• Created Velo Sound Station featuring local music stars like Atif Aslam and Aima Baig.
• Associated the brand with popular culture, enhancing its appeal.
• 5. Adaptive Promotional Tactics:
• Evolved promotional tactics based on feedback, offering discounted prices (Rs 50 per pack) for
subsequent purchases.
• Strong online presence with free delivery on the official online store to enhance accessibility.
28. Weirdly Wonderful" Campaign:
• VELO's "Weirdly
Wonderful"
campaign created
a fantasy world in
Pakistani cities,
sparking curiosity.
• Simple yet
engaging, drawing
people in and
generating
conversations.
29. NEGATIVE MARKETING
• Velo faced backlash, accused of
promoting nicotine addiction and
drawing comparisons to the local
product "Naswar." Critics raised
health concerns, and social
media perpetuated
misconceptions through memes.
The resemblance in usage
methods added to the challenge,
highlighting the need for
effective communication to
distinguish Velo and reshape its
public image.
30. CONCLUSION
• Market Impact:
• Velo has successfully tapped into the emerging market in Pakistan with its non-tobacco nicotine pouches.
• Effectively identified its target audience and tailored its marketing mix accordingly.
• Brand Evolution:
• Transitioned from being compared to Naswar to becoming a fashion statement, showcasing brand
adaptability.
• Maintained resilience in pursuing its mission amid challenges, emphasizing a commitment to a better
tomorrow.
• Target Audience Adjustment:
• Suggested potential for even greater market strength with adjustments to the primary target audience.
• Promising Results:
• Velo's performance indicates promising results and the potential to usher in a new era in the nicotine
industry.
• Particularly significant given the decline in the tobacco industry, positioning Velo as an innovative and
forward-thinking brand.
31. • Innovative Marketing:
• VELO leads with innovative thinking, selling an experience, a story, and moments of awe rather
than just a product.
• Artistic execution of campaigns, showcasing quality, visuals, and impactful storytelling.
• Imagination in Marketing:
• VELO's campaign demonstrates the power of imagination in marketing.
• Highlights the effectiveness of engaging audiences through captivating stories that transport them
to another world.
• Rare Marketing Approach:
• The campaign's rarity lies in its ability to turn a daily commute into an interstellar adventure.
• Illustrates the potency of marketing that goes beyond straightforward ads, engaging audiences
through immersive storytelling.
VELO stands at the forefront of transforming the nicotine industry, embracing creativity,
resilience, and a commitment to delivering more than just a product to its consumers. As
the brand continues to innovate and captivate, it holds the potential to reshape the
industry landscape and create a lasting impact on consumer perceptions.
