Marketing Strategy for ECIG (Electronic Cigarettes International Group)
Dan O'Neill took over as CEO of ECIG on January 9, 2015, replacing outgoing Brent Willis, who founded the company but who has also been viewed as the main reason for the plummet in share price. Dan O'Neill's record of experience as CEO of Molson's and top leadership positions at Heinz and Star-Kist suggests that ECIG may finally be in more capable hands. With the reduction of debt and the one-time write-off of losses, the company has pivoted for better years (Hoogervorst, 2012). However, restructuring its debt and distribution channels are main points that need to be addressed before any reversal in the company's fortunes can be expected. The three main reasons customers will be attracted to ECIG are: 1) sustainability: the vaporizer market is growing as a result of smokers looking for healthier alternatives; 2) Dan O'Neill is providing the kind of corporate governance that draws consumers; 3) ECIG is situated expansively throughout the UK in high-foot traffic areas with easy access for consumers.
Product/service concept:
ECIG is a real electronic cigarette and vaping company with retail shops and kiosks in the UK and USA as well as an online store for each of its various brands, ranging from the popular VIP brand to the FIN and Vapestick brands. The benefits of using e-cigs and vaporizers is that they significantly reduce the health risks normally associated with smoking, according to a health study recently released by the UK, which stated that e-cigarettes are 95% less harmful than tobacco products (Public Health England, 2015). The design of ECIG's various brands is simple, consisting of both disposables and refillables. VIP is a major seller in UK, with more than 100 kiosks established in high traffic locations, including in and around major metropolitan areas like London. FIN has recently been launched in America and has quickly expanded to more than 5000 locations nationwide. The products do not come with warranties or have significant life cycles. New product development consists of identifying the latest advancements in vaping technology and utilizing this to appeal to individuals looking to quit smoking.
Buyer Utility Map:
Purchase: The customer may choose from a variety of retailers, online and physical to select a product that appeals to his individual tastes. If the customer has some knowledge of vaping then the process is simple, if not there are tutorials on the web and assistants at kiosks and shops to help. The kiosks in UK are conveniently located to bring in the maximum amount of foot traffic. The risk in the purchase is that the customer will not enjoy the experience of vaping or using an e-cig. The image of vaping is seen first-hand in social settings as among the UK populace it is very popular and in the shops there are signs that show how to do it.
Delivery: The customer can purchase online and receive in mail or purchase in person from kiosk or shop. There is no risk involved in either purchase setting other than in mail delivery being held up by slow days. Convenience is guaranteed and the fun of being catered to in person or online is tangible.
Use: The customer receives the product and uses the e-cig or vaporizer as an alternative to smoking. The person can vape anywhere in public as there is no second-hand smoke.
Supplements: The customer can purchase e-liquids and mix and match flavors for his own personal taste. There is also vaping equipment that can be purchased to heighten the experience.
Maintenance: There is no maintenance required, as some or disposables and others simply need to swap out the e-liquid cartridges. Other than that, battery power is required so there will need to be a recharge plug and outlet.
Disposal: Disposables can be thrown away in the trash and there is no cost for disposing of the product
Product Classification:
This is a specialty product, considering it is relatively new to the market with a specific consumer base and an alternative method of achieving the smoking sensation without polluting the lungs.
Product Features/Benefits:
Vaping acvessories that promote a healthy lifestyle
E-cigarettes that allow smokers to kick the tobacco habit
Vape lounges/shops that allow customers to customize e-liquids
Online stores that allow ease of access shopping from home
Sales promotions online and at kiosks/retailers
Product Life Cycle
Products are constantly in a mature state, as the industry develops. FDA prescriptions and guidelines in the U.S.A. need to be met to ensure the highest quality of e-liquid product and accessories, and therefore staying abreast of these latest guidelines will be pivotal in the U.S. market.
Target Market:
"Places in Trouble" (Kotler, 1993) are to be avoided and places where non-traditional venues...
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