E-Cigarette

Tobacco companies should invest more in doing research to do a breakthrough invention so they could produce products that are healthier as the anti-cigarettes campaign is showing definite results. With e-cigarettes that states themselves as healthier products, maybe in the future the demand will shift again to e-cigarettes. Only by discovering new things that satisfy the customer’s want and need will the company be successful.

Warner-Lambert, an international pharmaceutical and consumer products company in Ireland, planned to launch a new product in 1990 called Niconil which was made for those people who would like to quit smoking. Niconil were different than the existing smoking cessation products in the market. Managers of the company believed that Niconil had many competitive advantages over its competitors and were very confident of the product. But there were some arguments about pricing strategy and marketing communication: Should Niconil be priced at a premium over cigarettes or on a par with cigarettes?What kind of advertising and promotion method they should use? Before launch the product

Theoretically,(2) frequently advertised,(3) and commonly assumed by users,(4-12) this process avoids the harmful byproducts of combustible tobacco. Moreover, users cite considerable financial savings(4,5) using e-cigarettes over combustible cigarettes – i.e. $846 per year compared to $2190.(13) E-cigarettes are often marketed as a way to beat public smoking restrictions,(3) and users frequently claim this as one reason for consumption.(5,14)

In the past decade e-cigarettes industry has been growing quite rapidly. E-cigarettes were first created as a better alternative to the conventional tobacco cigarettes, pipes, and cigars. However, in todays society they have become a very popular commodity. Likewise, they are mostly used for mere pleasure and not what its original purpose was. Originally the sole purpose of e-cigarettes was to help wean their users off of the unhealthy drugs we all know as the conventional tobacco cigarettes (Dockrell, 1). But are they really the healthier alternative? Absolutely not. E-cigarettes are extremely unhealthy, used as a gate-way substitute, and also affect others who aren’t even directly using it!

Lastly, the rise of E-cigarettes may lead to Big Tobacco companies gaining larger influence and a new strong market. Big Tobacco companies are beginning to invest in E-cigarettes and since they are larger and wealthier than many smaller companies who deal E-cigarette products, they might have the ability to strongarm them into submission. Once Big Tobacco companies take control of the market they would once more have a foothold over society. Big tobacco companies should not be allowed to gain such strength since their market is in products which are toxic and ruinous to people.

Even though other leading tobacco companies, like Altria and Reynolds American, are strong competition for Lorillard, in the electronic cigarettes market, Lorillard continues to dominate. The question becomes, is the decision by Lorillard to expand its e-cigarettes business the correct action to be taking at this time? We will now take a look at three indicators that may put the potential upside of e-cigarettes business in perspective for Lorillard.

The profitable business of electronic cigarettes has raised over $3 Billion dollars annually, vastly spread across over 466 brands which have joined the ordeal. Above all, known as a “gateway drug”, electronic cigarettes have claimed the once-ordinary lives of people, specifically to those who have turned from tobacco cigarettes. What is more, scientists have determined that not enough research has been executed to automatically assume the healthiness of e-cigarettes. Despite this, many have claimed that e-cigarettes, are, and will be the new “healthy” drug, so to speak. Provided that e-cigarettes do not release harmful smoke, they are still not safe for one’s health given that not enough research has been performed on them.

E-cigarettes first came to the US in 2007, amid speculation that the device could reduce tobacco use and in long term, save lives.

An increasing number of physicians and scientists agree that e-cigarettes are a healthier alternative, and they say these products could end a major health problem. The Royal College of Physicians say, "Electronic cigarettes and other nicotine-containing devices offer massive potential to improve public health, by providing smokers with a much safer alternative to tobacco" (Jen Christensen, sec. 4).

The industry being analyzed is the tobacco industry. The tobacco industry manufacturer cigarettes, snuff, chewing tobacco, etc.

Jennifer jean a Registered nurse that has experienced the effects of traditional cigarettes especially on some of her older patients, believes that the electronic cigarettes will eventually end up being like the traditional cigarettes. The traditional cigarettes were once believed to be one hundred percent safe until they did research and investigation and then and all the different health issues began to arise in the smokers.There will soon be ads against the use of the electronic cigarettes just they what they currently have to haalt traditional cigarette smoking.

Constraints must as well be addressed before they become a threat to both the product and the brand. The MarkTen2 intends to capitalize on the consumer demand for both the product and the brand. As electronic cigarettes become a more popular alternative to regular tobacco products and an interest to non-smokers, the new and innovative product will position itself out of the unhealthy eye and serve a better purpose to the end consumer. It is obvious that Altria as a brand is a giant in the industry and has a methodology to both gain and retain loyal customers. The MarkTen2 will serve as a beneficial compliment to the direction Altria is headed and the future of the tobacco

The market for electronic cigarettes is a fast growing 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 potential growth, as more people are made aware of the product. Current advances in technology and quality of the product have greatly accelerated the product category. And as it continues to garner mainstream recognition the e-cigarette market will continue to expand.

I have chosen cigarettes to be my market transaction as it is has a very large and wide market. A cigarette is a product consumed through smoking and manufactured out of cured and finely cut tobacco leaves and reconstituted tobacco, often combined with other additives1,

E-cigarette is believed to greatly reduce on the health effects associated with tobacco smoking. However, e-cigarette has been criticized as a leading cause of smoking among the youth due to its flavor as well as its novel appearance and campaigns. It is also believed to pose some health risks. Despite such drawbacks, e-cigarette has recently gained a lot of popularity and subsequent growth.