IMM PROJECT ON SMOK-OX ANTI-SMOKING CHEWABLES

A PROJECT ON

INTERNATIONAL MARKETING MANAGEMENT

TO STUDY

GLOBAL MARKETING ENTRY STRATEGIES TO BRING

smok-ox
“Now quit smoking naturally”

SUBMITED BY:

MITHUN KUMAR- 82

NANDITA SADANI- 48

VENKAT SURESH- 40

DINESH-62

AMITY GLOBAL BUSINESS SCHOOL

BANJARA HILLS, HYDERABAD

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INDEX

CONTENTS………………………………………………………………………………………………
……………………………………………..PAGE

1. INTRODUCTION
1

1.1 ILL EFFECTS OF SMOKING

1

1.2 INTRODUCTION TO SMOK-OX

4

2. MARKET RESEARCH (QUETIONNAIRE)

9

3. STP
12

3.1 SEGMENTATION
12

3.2 TARGETING
14

3.3 POSTIONING
15

4. PORTER’S ANALYSIS
15

5. 4P’S
17
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6. IMC (AIDA model)

19

7. SWOT ANALYSIS
19

8. OTHER ANALYSIS
20

8.1 PRODUCT LOFE CYCLE

8.2 PACKAGING AND LABELING

8.3 GLOBAL MARKETING STRATEGIES

8.4 CAUSE RELATED MARKETING

9. MACRO ECONOMIC FACTORS

21

10. CONCLUSION
22

11. BIBLIOGRAPHY
22

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1. INTRODUCTION

1.1 Ill-effects of cigarettes:-

Here are some facts of which you are probably aware, but which should be serious
thinker over:

• Nicotine and other harmful chemicals, which cigarettes contain, create a serious
toxic environment in your body and brain. These toxins are accumulated in your body, in
particular in those organs which are most
vulnerable for smoking - heart and lungs.

• The smell of cigarette smoke

always accompanies the smoking person.
The cigarette smoke penetrates deeply
the skin of your hands, your hair and
clothes.

• Smoking of a single person renders

a negative impact on him and on all the
people around him as well. Passive
smoking is particularly harmful to young
children.

• Think, how much money you spend daily to reduce your own life? The amount will
be really surprising for you.

• Male smokers lose about 13.2 years of life and female smokers - 14.5 years of life
due to the smoking. Each year about 440000 people die in the United States for the
reason of consuming of tobacco products.

There is no denying to the fact that tobacco is a global problem with 1.1 billion tobacco
consumers in the world today. The WHO estimates that if the current trends continue then
4

by 2025 the number of smokers would increase to 1.64 billion, with most of the increase-
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taking place in developing countries. Four million people die yearly from tobacco-related
diseases, one death every eight seconds.

India is the third largest producer of tobacco after China and America. There are 142 million
men and 72 million women above the age of 15 years who consume tobacco; 2,200 persons
die every day from tobacco-related diseases. Although people are becoming aware of the ill-
effects of smoking in terms of morbidity and mortality, they cannot be expected to be able
to evaluate the epidemiological implications of smoking, says a report of the expert
committee on the Economics of Tobacco Use (ETU) instituted by the Indian Ministry of
Health and Family Welfare. In a study conducted by the Indian Council for Medical Research
it was revealed that each patient suffering from a tobacco-
related disease costs the country Rs 2.5 million through
direct medicinal costs, absenteeism for treatment and loss of
income due to premature death.

Realizing the need to curb the most dreaded epidemic in

developing countries, Voluntary Organization in Interest of Consumer Education (VOICE)
decided to work on the Framework Convention on Tobacco Control (FCTC), international
treaty on tobacco control of the WHO, within India with 1600 consumer organizations and
also with the Consumers International (CI) and its members. VOICE is also actively involved
with WHO and other Global Networks working on tobacco related-issues. During the WHO
Executive Board Meeting at Geneva in January 2001, VOICE was made the Regional
Coordinator f or Network against Tobacco
Transnational’s (NATT) and has taken the task to
organize various groups in the region to work
together on the seven key principles of NATT.

The tobacco epidemic that was earlier restricted to

men, is now shifting towards women. A WHO study
titled "Women and the Tobacco Epidemic:
Challenges for the 21st Century" states that eight percent of women in developing countries
and about 15% in industrialized countries currently smoke cigarettes. In addition, women in
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India and several other countries chew tobacco.

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In India, about one-third of women use at least one form of tobacco. Overall prevalence of
bidi and cigarette smoking among women is about 3% and 22 per cent women consumers
use smokeless tobacco.

With laws in industrialized nations putting curbs on tobacco companies, there is a scramble
among the several tobacco giants to conquer new markets. In India, women are the targets
of aggressive marketing campaigns by foreign tobacco firms, which have launched several
"women's brands." the latest figures from anti-smoking organizations show a rise of 18
percent in the number of women smokers in India.

However, the prevalence rates for women differ widely from region to region - 15% in
Bhavnagar to 67% in Andhra Pradesh. Tobacco is probably the most researched consumer
product.

The health aspects related to smoking among women are grim. New research has found
that smoking causes more breathing difficulties in women than in men. Women smokers
reported higher rates of asthma than men, with the prevalence of asthma in women
increasing with increasing numbers of cigarettes smoked. The asthma rate was more than
one in 10 among those women smoking more than 20 cigarettes a day. In India where betel
quid chewing is widespread among women, oral cancer is more common among women
than breast cancer. In addition women also suffer from general respiratory problems.
Female smokers are more susceptible to osteoporosis or "brittle bones." Also, smoking
during pregnancy significantly increases the chances of the infant dying of sudden infant
death syndrome, Spontaneous abortions, delivering a pre-mature baby, delivering a low
birth-weight baby, impairing the child's long-term growth and intellectual development.

In view of the dangerous tobacco consumption patterns, the draft bill to control
consumption of cigarettes and tobacco in the country needs to be passed urgently.
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1.2 Introducing Smok-OX

-“Now quit smoking naturally”.

SMOK-OX includes clinically tested Ayurvedic herbs. The pleasant-tasting chewable capsules
should be assumed right when you feel you want to smoke. The capsules help to get rid of the
nicotine addiction, and start the detoxification of the body, helping to restore and heal it. The
dosage of Smok-OX is 8 -12 capsules a day or you can take them whenever you have a craving
for smoking.

We’ve tested all our herbs and they are absolutely safe. Their
medicinal properties have a right affect on the entire organism. Herbs
included by the product do not contain pesticides, and after a manual
selection, they’ve passed a series of clinical trials. A correct selection
of herbs not only helps the smokers to quit smoking, but also restores
the body during the healing procedures.
Quitting smoking has a load of considerable advantages. It will help to
reduce the risk of lung cancer and oral cavity diseases, various heart
problems, emphysema, chronic lung diseases and complications during pregnancy:

x To improve skin and hair

x To improve the memory
x To improve the taste and smell (already after 48 hours from quitting these senses get
much improved)
x To improve blood circulation (a significant improvement after 2 weeks from the smoking
cessation, thereby reduces the risk of myocardial infarction)
x To improve the perception of the world
x To improve breathing (up to 30%

Ingredients of Smok-Ox:-

All-Natural Herbs

Our herbs are all naturally grown, which allows us to deliver only the finest ingredients.
Each of 60 Smok-OX capsules contains the following ingredients:
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Aloe Vera (10mg)

It is a great antioxidant and general detoxifier. Aloe Vera provides natural
support to the immune system and cleanses the digestive system. It has
also been known to help soothe upset stomachs, improve the health and
quality of hair and skin, and heal the mouth and gums.

Curcuma Longa (200mg)

It is also called Turmeric; helps detoxify the body, getting rid of harmful
toxic chemicals throughout the organism. Turmeric is especially healing for
smokers, as it reduces the cancer-causing substances that are left over in
the body. It also works to lower cholesterol and reduce blood pressure.

Camellia Sinensis (10mg)

Commonly known as green tea, is used for thousands of years as a
powerful antioxidant. Green tea helps with a number of different ailments.
It helps calm headaches, the nerves and the stomach. Current research
shows that green tea may prevent the growth of some cancer cells, lower
blood pressure, stimulate and cleanse internal organs.

Eugenia Caryophyllus (20mg)

Is familiar to everyone under the name of cloves. It has great antioxidant,
antiseptic, and blood purifying properties. Cloves have been used to
cleanse the digestive system and boost metabolism. It has also been used
to help clear up the lungs, reduce headaches, and freshen up the breath.

Zingiber Officinale (10mg)

Also known as ginger, has antioxidant, blood circulation, and energy
metabolism properties. Ginger has been known to lower cholesterol,
reduce blood clots, and some studies show that ginger may be useful in
helping to treat heart disease and some forms of cancer. Used also for
respiratory infections. 8
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Mentha Piperita (10mg)

It is usually named "peppermint". It is great for calming for headaches,
indigestion, and upset stomachs, as well as soothing coughs and sore
throats. Mint stimulates circulation, clears lungs, and calms the nerves.
Early studies have shown that mint may prevent lung cancer.

Cinnamomum Zeylanicum (10mg)

It is also known as cinnamon, works well for coughs, asthma, and nausea.
Cinnamon is great for improving circulation and digestion, as well as
soothing upset stomachs, clearing up nasal/sinus congestion. It has blood-
purifying qualities too.

Piper Nigrum (20mg)

It is well-known as black pepper. This strong antioxidant has outstanding
antibacterial properties. It is used to improve digestion and circulation.
Black pepper enhances the healing effects of other herbs, such as green
tea. Studies have shown that black pepper may help to prevent cancer.

Glycyrrhiza (70mg)
Also known as licorice is used for thousands of years to relieve coughs and
sore throats. It promotes overall good upper respiratory health. Licorice is
also a powerful detoxifier, working to improve the function of the liver and
rid it of toxins.

Emblica Officinalis (100mg)

- Indian Gooseberry (Amla) - both purifies and strengthens the lungs. Being
a great aid for eliminating harmful chemicals from the body, it cleans and
rebuilds the blood, cells and tissues. Also, it is a powerful antioxidant and
immune booster.

We use very high standards in the manufacturing of all our products and work hard to maintain
control over the production process. It is our commitment to ensure that we use herbs that are
fresh, safe, manually selected and inspected. We aim to make certain that our products meet
compliance and thus provide our customers with ultimate satisfaction
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How Does It Work?

The capsules help to get rid of the nicotine addiction, as well as detoxicate the body,
restoring it and strengthening.

The combination of natural herbs doesn’t only help the smokers to quit smoking, but also
restores the body during when taken. The limitation of the cigarette smoke concentration in
your body helps to:

x To reduce the risk of lung cancer and oral

cavity diseases, heart illnesses, emphysema,
chronic lung diseases and complications
during pregnancy.
x To improve skin and hair of a person.
x To improve the memory.
x To improve the taste (already after 48 hours
from quitting these senses get much
improved)
x To improve blood circulation (a significant improvement after 2 weeks from the
smoking cessation, thereby reduces the risk of myocardial infarction)
x To improve the perception of the world
x To improve breathing (up to 30%)

How to Use?
Take Smok-Ox whenever you have a craving for smoking. There are 60 capsules in a bottle;
the suggested dosage is 8-12 capsules a day. Smok-Ox makes your sense of taste perceive
cigarette smoke as something unfamiliar, and react to it with distaste. Smok-Ox is made
from plant extracts and therefore is suitable for vegetarians and vegans. Recommended
usage period: 2-4 weeks (4-5 bottles), till craving for smoking goes away.
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What Side Effects May I Notice?

There are no negative side effects! All ingredients are natural, free of pesticides, manually
inspected, ecological-friendly produced and clinically tested. Smok-Ox is also free from
allergens, artificial coloring, flavors, salt and preservatives.

Advantages-

Less harm to your body, more bonuses to general

health:

x NO weight gain
x NO toxins
x NO stress
x NO chemicals
x NO cough and sore throat

Say YES to your health!

General Precautions-

If you have liver or kidney disease, consult your healthcare provider before using this
supplement.

Always give your health care provider a list of all the medicines, herbs, non-prescription
drugs, or dietary supplements you use.

How to Store?

Store in a dark cool place away from heat and moisture. Keep away from children and pets. Throw away unused
capsules after the expiration date.
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1. MARKET RESEARCH

Questionnaire:-

SAMPLE SIZE-20 AVG AGE-(20-25)

1) How many cigarettes do you smoke per day?

A) 1-2 B) 3-4 C) 5-6 D) 1PAC+

A B C D
3 2 5 10

25

20
D
15
C
10
B
5 A
0
1

2) Have you ever thought of quitting smoking?

A) Yes

B) No

Y ES NO
14 6
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20

15
NO
10 YES
5

0
1

3) After quitting, did you ever start off again?

A) Yes

B) No

Y ES NO
17 3

100%
95%
NO
90%
85% YES

80%
75%
1

4) Which factor influences the most to smoke?

A) Addictive

B) Stress

C) Status
13

D) Pleasure
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ADDICTIVE STRESS STATUS PLEASURE

10 6 2 2

100%

80%
PLEASURE
60%
STATUS
40%
STRESS
20%
ADDICTIVE
0%
1

100%
PLEASURE
80%
STATUS
60%
STRESS
40%
ADDICTIVE
20%
0%
1

5) Would you be willing to quit smoking with a prescribed smoking method?

A) Yes

B) No

Y ES NO
15 5
14
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25

20

15
NO
10
YES
5

0
1

100%
80%
NO
60%
YES
40%
20%
0%
1

2. STP

3.1 Segmentation

A. Geographic and Demographic factors:-

Of the estimated 1.1 billion smokers worldwide, about 182 million (16.6%) are in India and
by 2020 it is predicted that tobacco will account for 13 per cent of all deaths. The National
Family Health Survey (NFHS) is a large scale multi-round survey conducted in a
representative sample of households throughout India. According to NFHS-3 conducted in
2005-06, which collected data on tobacco use directly by asking respondents to report on
their own tobacco use, the percentage of women and men aged 15-49 yr who smoked
cigarettes or bidis, in India was 1.4 and 32.7 per cent respectively. Bidis are thin, often
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flavored and are made of tobacco wrapped in a tendu (or temburini; Diospyros
melonoxylon) leaf.

Bidis have higher concentrations of nicotine, tar, and carbon monoxide than conventional
cigarettes. Prevalence of cigarette/bidi smoking in different States was variable with a low
of 14 per cent of men in Goa to a high of 74 per cent in Mizoram. Four in 10 male smokers
reported that they smoked 10 or more cigarettes/bidis in the previous 24 h. Two per cent of
rural women smoke cigarettes or bidis, while less than 1 per cent of urban women smoke.
The lower prevalence of smoking rates in women in India compared to men is presumed to
be due to social and cultural factors.

A multicentric study in four districts (Bangalore, Chandigarh, Delhi and Kanpur) showed that
the prevalence of smoking was 15.6 per cent (male 28.5%, female 2.1%), that significant
respiratory morbidity was associated with smoking and that quit rates were low (10%) . In a
study of smoking habits among medical students, 46 per cent of the medical students
smoked (all were male and no female smoked). In recruits enrolled for military training (in
the age group 17 to 23 yr), 43 per cent were smokers (15). In the Global Youth Tobacco
Survey (GYTS) reported from the northern region of India , among school going children
aged 13 to 15 yr, the prevalence of ever used tobacco was 2.9 to 8.5 per cent in boys and
1.5 to 9.8 per cent in girls although the majority of them reported desire to quit.

In the GYTS conducted in Tamil Nadu, 10 per cent of the students had ever used tobacco
and a significantly higher percentages of current tobacco users (one in three students)
compared to never tobacco users thought smoking or chewing tobacco made a boy or girl
more attractive. These rates of tobacco use in the school going age group are a cause for
alarm. In most studies from India, prevalence of smoking in the female population was
generally very low. However, in a study in Bihar, smoking prevalence in females was
reported to be 23.4 per cent.

As of 2000, smoking is practiced by 1.22 billion people. Assuming no change in prevalence it

is predicted that 1.45 billion people will smoke in 2010 and 1.5 to 1.9 billion in 2025.
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Assuming that prevalence will decrease at 1% a year and that there will be a modest
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increase of income of 2%, it is predicted the number of smokers will stand at 1.3 billion in
2010 and 2025.

Smoking is generally five times higher among men than women; however the gender gap
declines with younger age. In developed countries smoking rates for men have peaked and
have begun to decline, however for women they continue to climb.

The World Health Organization (WHO) states that "Much of the disease burden and
premature mortality attributable to tobacco use disproportionately affect the poor". Of the
1.22 billion smokers, 1 billion of them live in developing or transitional economies. Rates of
smoking have leveled off or declined in the developed world.

B. Benefit-Value based segmentation:-

VALUE=BENEFIT/PRICE

Example:-

If one cigarette costs an average of Rs.5/-, a box of 10 cigarettes would cost 50/-. Therefore,
if a smoker smokes a packet of cigarettes in a day, the per month cost for him would be
1500/- and this would go on until he quits smoking. If he purchases our product, he will be
able to save the life long cost by just spending approximately 3000/- once.

Hence, Value = Quit smoking / R.s 3000

C. Behavioral segmentation:-

 Product usage - e.g. light, medium, heavy users.

 Type of users (e.g. after meals, in special occasions)
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3.2 Targeting:-

Target the higher income group’s people who are more addicted to smoking.

Target only youth who are recently addicted to smoking, the product works on them more
effectively

3.3 Positioning:-

Being a new product entering into market it should maintain brand equity with smarter
pricing.

India being a traditional country believes in natural things, we can use the product tag as the
weapon for targeting people.

3. PORTER’S ANALYSIS

3.1 Competitive rivalry

 Pfizer introduced an anti smoking drug called Champix in India. . It is a
prescription drug that will be promoted only through doctors who will be
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informed of its risks carried in its labeling. Smoking is expected to cause

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930,000 adult deaths in 2010 in India and given the growth in population,

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there will be a million smoking-associated deaths every year thereafter. At Rs

9,500 for the three-month treatment, it doesn’t come cheap. Two studies
have shown that 44% of smokers who went through the prescribed 12-week
treatment quit smoking. However, US regulatory issued warnings on the drug
due to the many side effects associated with it such as mood fluctuations,

abnormal behavior, heart attacks, loss of memory.

 Homeopathic treatment is also available in India. However, it contains oils

like Ylang ylang, rosemary, peppermint and Eucalyptus which need to be

mixed with alcohol and diluted amounts of nicotine.

3.2 Threat of substitutes

 Yoga helps people in exercising control over mind and body. Because of this,
people they are able to overcome their stress and hence they are not
addicted to smoking.

 Therapeutic and counseling centers

 Healthy cigarettes(Electronic)

 Candy cigarettes, which are not addictive.

 Hookah

3.3 Bargaining power of Buyer’s

There are few buyers, so buyers are powerful. The buyer’s can at times reject the
product because of its pricing. This product is not standardized, so buyer’s can
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easily switch to another product.

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3.4 Bargaining power of suppliers

 The bargaining power of suppliers is quite low.
 This product actually does not need any kind of external suppliers. We can
have our own nurseries and grow the herbs required for making the product.

3.5 Threat of new entrants

 The threat of new entrants is very low.

 Local herbal companies can be a threat; however it will be minimal at initial

phase.

 Champix, if at all it changes the formula of the product and eliminates the
side effects.

4. 4 P’s

 Product – Anti-smoking pill(Smok-Ox)

 Pricing – 12.50/- per pill

Steps involved while arriving at the final price:-

1) Objective - Low price Compared to the US since we want to penetrate the
market and grab the market share. So, we assume that low price increases
volume of sales and discourages actual and potential competitors.
2) Demand – Based on market research and target customers
3) Estimating costs – Costs incurred for Nursery, Lab, Machinery, Cost of Capital,
Distribution costs, Transportation costs, Licensing costs and labor costs.
4) Analysis of Competitors – We have only one competitor Champix, which is much
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more expensive.
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5) Pricing methods – Value pricing.

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 Promotion -
1. Personnel Selling
2. Advertisements
3. Newspaper
4. RJ Promos
5. Samples
6. Brand Ambassadors
7. Through Anti smoking camp

 Place
The places that we would like to choose for selling the product are as follows:-
o Rehabilitation Centers.
o Doctors Clinic
o Medical Stores and pharmacies
o Hyper mart and super markets

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5. IMC (INTEGRATED MARKETING COMMUNICATION)

AIDA model:

Attention Creating awareness the customer through television advertising,

newspaper advertising.
Interest Raise customer interest by demonstrating features, advantages, and
benefits such as eliminating cough, pain in the stomach, irritability and
anxiety which occur immediately when you quit smoking.
Desire Convince customers that they want and desire the product or service
and that it will satisfy their needs. This can be done through an
attractive tagline.
Action Lead customers towards taking action and/or purchasing. It can be
done by intensive distribution, stating the benefits of the product in
the ads.

6. SWOT ANALYSIS

Strengths:-

1. Purely Herbal
2. No Side effects
3. Nice flavor
4. No chemical and toxic substances

Weakness:-

1. Costly

Opportunity:-

1. First anti smoking herbal medicine, so it almost a monopoly.

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2. Capturing the vast market available.

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Threat:-

1. Substitutes
2. Competition from other herbal products.
3. Threat of being unsuccessful

7. OTHER METHODS FOR ANALYIS

7.1 Product life cycle:-

Stages of Product life cycle (PLC)-

x Introduction
x Growth
x Maturity
x Decline

Smok-ox will be in Introduction stage in India. Hence we follow value chain pricing
method.

7.2 Packaging and labeling:-

o We will use Strips of tablets containing 12 tablets of Smok-ox each. We would
also use containers having 240 pills.
o Strips and containers covered with stickers and paper covering which tell
about the ingredients, dosage and benefits of the product. 23
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7.3 Global market entry strategies:-

They are-

x Licensing
x Direct and indirect entry
x Joint venture
x Direct investment

We would acquire license and enter the Indian market through direct entry mode.

8.3 Cause related marketing:-

We are going to market the product along with

NGO’s, rehabilitation centers and WHO (World
Health Organization) because the product is also
associated with a social cause.

8. MACRO ECONOMIC FACTORS

1. Society: - The product is helpful to the society because this product will protect the
society and environment from pollution and moreover it is a very eco- friendly
product as it is pure made of herbs. The product is a kind of boon to society as it has
all the benefits it protect the life of consumers who are everyday ruining their life by
moving one step towards the death.
2. Government: - The product will reduce government revenue because most of the
government revenue comes from high taxes on tobacco products, around 400 billion
India has 300 million smokers and revenue is around 400 billion rupees but on the
other hand as it is good for society and benefits the society so government will help
in promoting the product. Moreover India is committed to reduce the tobacco
consumption, recent laws to restrict public smoking is an example.
3. Legal Environment: - There is no such legal restriction on the product because it is a
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purely herbal product that prevents a person from smoking. Only products made
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from tobacco are bounded by legal rules and regulations non tobacco products do
not face any such kind of restrictions. Licensing for any global product is required.
Any global product need to seek the government licensing before entering into any
new or local market .So licensing for the product is required.
4. Market Environment: - As it is a completely new product which is first time being
launched in India. Before it only one such anti- smoking product was launched in
India by Pfizer but that product was couldn’t gain popularity speed because of its
side effects moreover the product was not an herbal product. In India this is the first
anti-smoking herbal product so it is a monopoly for the product. If we launch the
product in India it we will hold a stake in the market as it is the only anti-smoking
product made of herbs.

9. CONCLUSION
We feel this product would definitely be a huge hit in the current Indian
market. The reason being that the government here is striving hard to reduce the
tobacco consumption. Indian government has already imposed restrictions in some
cities upon smoking in public places. Also, we would get support from the NGO’s and
other social organizations which are trying to prune the tobacco consumption in
order to improve the health of people as well as protect the environment. Since it is
the only anti-smoking product in India with a herbal touch, it is almost a Monopoly.
Smok-ox is all set to hit the Indian market with a bang and now “Smokers can quit
Smoking Naturally”.

10. BIBILOGRAPHY
 MARKETING MANAGEMENT BY “PHILIP KOTLER”
 BUSINESS ENVIRONVIMENT BY “FRANCIS
CHERUNILAM”
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Page

BY GROUP15, MBA2011, AGBS HYDERABAD.