Post on 10-Apr-2018
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ECIG
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SMOKI N G IS DISASTROUS TO
HEALTH
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SCHEME OF PRESENTATION
Shams uddin Zaraq Khan
Naveed Zazai Tariq Khan
Muhammad Abdullah Shakir Ullah
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EXECUTIVE SUMMARY
Concept
Uniqueness
Type ofbusiness
Finances
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75%ofsmokers live in lowor middle income
countries
Male smoking
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BUSINESS OPPORTUNITY
30-39%ofPakistanis aging 15 and above are
addicted to cigarettes.
75% people want to quit.
Target market(upper middle and above).
Demand for cigarettes.
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ECIG
Introduction.
Nicotine alternative.
Electronic Vaporizer(which uses glycerin).
Glycerin, nicotine and flavor.
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CIGARETTES + HEALTH= ECIG
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48 hoursNicotine eliminated from the body,
Taste buds start to recover
Within hours.......
8 hoursNicotine and carbon monoxide levels halved,
Blood oxygen levels return to normal
24 hours Carbon monoxide eliminated from the body
BENEFITS OF ECIG
No objections during flights and non smokingzones
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Types ofeCig:
o Mini
o Pen type.
TYPES OF ECIG
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THE DEVICE
Indicator light.
Battery.
Atomizer.
Charger.
Liquid container.
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OPERATIONS
Outlet in E 11 markaz Islamabad
Operations in Islamabad and adjacent areas
Delivery toother cities through courier
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SURVEY
Most smokers cant quit smoking
No suitable alternative
Our product was appreciated by them
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MARKETING PLAN
Launch the product in Islamabad
Mostly high income people
Delivered anywhere in Pakistan through courier
Open outlet in places with good response
Try to get help ofNGOs and Government
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TARGET MARKET
Middle upper
Upper
Elite class
Innovators
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PRODUCT
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PRICING
Pen Type = $ 65
Mini Type = $ 50
Price ofeLiquid= $ 7
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PLACEMENT
Distribution through outlet.
Through commission agents.
Through website.
Home delivery anywhere in Pakistan.
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PROMOTION
Marketing (sms marketing,email,university
campaigns)
Sms costs=0.10 paisas
Email marketing=1000000 emails for 8000
rupees.
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COMPETITORS
eLight and Palluchi.
They dont have operations in Pakistan
They can be a threat
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ORGANIZATIONAL PLAN
Private ltd
Equal investment by each partner
Profit/loss equally divided
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ORGANIZATIONAL STRUCTURE
MuhammadAbdullah (M.D)
Tariq khan (E.D)
Shams uddin (C.F.O)
Shakirullah (M.O)
Naveed Zazai (M.E.A)
Zaraq khan (M.M)
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GOALS & OBJECTIVES
To penetrate the market ofother electronic
cigarettes
To aware people about affect ofnicotine i.e.
Lungs cancer, mouth cancer etc
To gain maximum profits
To
make custo
mer brand lo
yal
Expand business throughout Pakistan
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COSTS/MANUFACTURERS
Manufactures are located in Italy & China
Manufacturing cost per unit
pen type = $25
mini type= $20
Freight costs=$20/kg
Pro
ductw
eight=0
.3
kg/unit Customs = 35%
Cost per unit=$35for mini and $40for pentype(estimated)
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INVESTMENT
Investment required= rupees
eCig = 350000 rupees
eLiquid = 150000 rupees
Marketing and other expenses = 100000 rupees
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Revenues 7012500
Electricity Expenses 50000
Salary Expense 288000
C.O.G.S 5100000
Gross Profit 1574500
Other Expense* 50000
Earning before interest and tax 1524500
Tax(17%) 259165
EAT 1265335
Net profit 1265335
INCOME STATEMENT
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InflowsRevenues (1000X50$ +65$X500) Rs. 7012500($82500)O.E 2401,000Total Inflow 7637500
OutflowsElectricity Charges 50000
Salaries 288000Other Expense 50000Tax 196187
Sum of Assets 2410,000COGS
5100000Total Outflow 6264187
Net Cash flow1373312
CASH FLOWS
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SWOT ANALYSIS
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WEAKNESS
Costly
Awareness
Availability
Less awareness
Substitutes (nicotine gums)
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OPPORTUNITIES
Market growth
New demands
Uniqueness
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THREATS
Current situation ofthe country
Idea can be easily copied
No control over cost due to manufacturing is
outsourced
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1 billion smokers
5 million people die every year
This figure will have doubled by 2030
75%ofsmokers want to quit
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THEEND