New product development

P re se n te d b y : -
Abhay pakash
ranjan
Uday kant pandey
Awish mirza baig
Diptish pardhan
Kavita kumari
Soumita ghosh
 Road map
•Introduction
•Need to develop this product
•Product
•Segmentation
•Pricing
•Distribution
•Promotion
•Conclusion
•
•
 Cigarette industry
• Global cigarette consumption has
grown by 22% .
• Today 1 in every 4 person of the
world smokes cigarette .
• Every year, 77.4 million packs of
cigarettes are bought or smoked by
youth. 
• Nearly 90 % of adult take their first
puff at or before the age of 18. 
•
 Do you know ????
According to WHO report
•

• A person dies every 10 seconds from

tobacco-related causes .
• In next 22 years, every year 8.5 million
people (against 5.5 million people now) will
die due to usage of tobacco.
• Smoking is directly responsible for 87% of
lung cancer cases and causes most cases of
emphysema and chronic bronchitis. 
• If current smoking patterns continue an
estimated 25 million people alive today,
including 5 million people currently under
age 18 , will die prematurely of a smoking-
 Relax……there is a hope.
• Each year, more than five million years of life could
have been saved if every person who died that
year from tobacco use had lived to their average
life expectancy.
•
•So how to save our people???

•Is it quitting ? But….its not that easy.

• Each year, nearly 35 million people make great

efforts to quit smoking. Less than 7% succeed
•

• Reason is Nicotine .
• Nicotine is the primary one that acts on the brain
— altering people’s moods, appetites, and alertness in
ways they find pleasant and beneficial. .
Technology …has a solution
• Threshold amount of Nicotine & other
chemicals which would give the taste
and sensation like the conventional one
but without harming .
• GM Plants
Green house Molecular farming of GM Tobacco

zebr
oo

Miracles Of
brand

P line

standard
premium
 Quality
•

• Genetically modified tobacco

• filter are made of high quality
cellulose-acetate
• Our cigarette will produce low
smoke
•
 PACKAGING
• Packet:- White with green colour/Gold
• Cigarette:- white with green ring
• Hard cardboard paper , with aluminum
coated interiors.
• 10 cigarettes

• Premium pack:- 90 mm in length and

10 mm in diameter
• Standard pack:- 70 mm in length and
10 mm in diameter
•
SEGMENTATIO
N
 GEOGRAPHIC
Chandigarh Allahabad

Indore
Nagpur
 DEMOGRAPHIC
• AGE:- Above 18
• GENDER:-Unisex
• INCOME:- above 5000
• EDUCATION:-Both (literate &illiterate)
•
 P S Y C H O G R A P H IC
• Socio economic classification-
• Middle class,

• Upper middle class,

• Premium class.
•

• Life style-
• Outdoor-oriented,
• Fashion oriented,
• Show off oriented.
 B E H A V IO R
AL
• Occasions- Regular, special
• Benefits-Quality,
• User status- potential user, regular
user
• Usage rate- Light, Medium and High
 PRICING OF “ULAX”
• Intermediate pricing strategy- Pricing
somewhere in between the skimming
strategy and the penetration
strategy
•

• Competitive
Segment
Bingo >3
parties
Price/piece(Rs) 10
–
Pieces/pack Examplesflakes
Scissors,

Standard 3-5 20 Classic, Gold flake

• Super premium <5 20 Insignia, Jaisalmer
•

•
Table 1 shows the unit cost price and mark up price of one single cigarette

standard premium
Unit-cost price (Rs) 4 5.6
Mark up-price(Rs) 5 7

Assuming that our company wants to earn

20 % profit

Table 2 shows the price of one packet of ULAX which contain

10 cigarette both in premium brand and in standard brand

SEGMENT RETAILER PRICE MRP

STANDARD 45 48
PREMIUM 62 67
Distribution channel
THREE LEVEL CHANNEL
•Pu b s/ B a rs:
•K io sks:
•Lo ca l “ p a n va d is
’ ”:
•C o n ve n ie n ce sto re s( K irya n a
sh o p s):
•S m o kin g zo n e
 DIRECT MARKETING

1.Blogs-www.ulax.blogspot.com
2.Website-www.ulax.com
3.Microsites-
 PERSONAL SELLING
• Getting the data base of those
patient who are seriously addicted
to smoking
 ADVERTISING
• TV&RADIO-Conducting chat show
and debate competition with
different doctor scientists,
researchers
 SALES PROMOTION
• Aisle Displays-Poster in betel
shop
 ANK
TH

U
YO