electronic cigarrettes

8/8/2019 Electronic Cigarrettes

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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

electronic cigarrettes

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