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    nitesh bhawsar
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    The document discusses the pricing strategy for an e-cigarette product called ECOSTIC. It analyzes the fixed and variable costs associated with producing 1000 units from various suppliers. Based on these costs and a 30% markup, the document calculates that the break-even point will be achieved in 25 months if 100 units are sold per month.

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    The document discusses the pricing strategy for an e-cigarette product called ECOSTIC. It analyzes the fixed and variable costs associated with producing 1000 units from various suppliers. Based on these costs and a 30% markup, the document calculates that the break-even point will be achieved in 25 months if 100 units are sold per month.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    15 views8 pages

    Mkting

    Uploaded by

    nitesh bhawsar
    The document discusses the pricing strategy for an e-cigarette product called ECOSTIC. It analyzes the fixed and variable costs associated with producing 1000 units from various suppliers. Based on these costs and a 30% markup, the document calculates that the break-even point will be achieved in 25 months if 100 units are sold per month.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    ECOSTIC

    (E-CIGARATTE)
    HOW DOES IT WORK?
    STP
     

    SEGMENTATION
     
     GEOGRAPHIC
    Bhopal city – Urban, semi-urban areas
     
     DEMOGRAPHIC
    AGE-no such age group

    INCOME GROUP- high class, upper middle class, middle class.


     
     
    GENDER-both male and female.
    CONTD………..
     TARGETTING
     
     All the markets except rural sector where people prefer bidis.
     We have targeted High class, upper middle class, middle class market which includes
    both men and women with no age factor.
     
     POSTIONING
    An eco friendly product
    Campaigns- environment safety, healthy india
    Hidden needs of the people - to smoke with same pleasure with almost zero
    bad affects and reduced cost.
     
     
    GRID
    PRODUCT LIFE CYCLE

     
     
    PRICING
    lasting of One cartridge- 150 puffs ( equal to 17 normal cigerraes)
    Charge time – 1.5- 2 hr
    Battery life – more than 300 times

    Our 1 set of E – cigarette include:-


    Cartridges- 5 pcs
    Atomizer – I pcs
    Batteries – 2 pcs
    Charger- 1 pc
    User manual – 1pc
    Liquid nicotine- I bottle

    Different parts of e- cigarette from different suppliers


    JKDN Enterprises (Gwalior) - Electronic cigarettes
    VISHWA EXPORTS (anand, Gujarat) – For liquid nicotine
    SPK consumer solutions pvt ltd (Chennai)- E CIG BATTERIES, chargers, cartridges
     
     

     
     
    PRICING
    COST PLUS PRICING –
    We have decided to keep the mark up as 30% in the starting and we will gradually increase it according to the market
    conditions.
    We have decided to buy 1000 complete sets from suppliers to keep in stock and will increase according to the market
    demand.
    So, for 1000 pieces we have estimated our
    Fixed cost – 1000/piece
    Variable cost-300/piece
    Total unit cost -1300
    So, total cost of 1000 units= 1300* 1000 = 1300000
    Profit margin- 400/unit
    So, total profit = 400*1000= 4, 00,000
    It means that we will achieve our B.E.P point after selling 2000 sets.
    So if we estimate our sales to be 100 sets /month
    Therefore,
    Profit= 500*100= 50,000
    So, the BEP will achieve in = 25 months
     
     
     
     
     

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