NJOY: Marketing Mix Strategies for the Different Cycles
Executive Summary Over the past few decades, there has been a substantial amount of increase in smoking. There has also been an increase in technological advances. Recently a pharmacist in China put the two together and invented an electronic cigarette. This invention enables the smoker to inhale the addictive ingredient of nicotine in the form of vapor without the added harmful ingredients. NJOY introduced these e-cigarettes to the American consumers in mid-2000’s. It caught on much popularity and is now one of the fastest growing industries with revenue of $1.7 billion. With such growth and popularity, come regulatory actions from the government. This is done to slow down growth in the name of public health. Such regulations lead to decreased demand and revenue. NJOY is expected to be affected by these regulations and it will take necessary steps to counter them. Introducing new products and making product improvements along with promotional discounts are just some examples of actions taken by NJOY to ensure revenue stability in the upcoming maturing and the declining stages. Founded in 2006, NJOY is the top electronic cigarette company in the United States. NJOY prides itself in providing a high quality e-cigarette experience for the past seven years. NJOY electronic cigarettes are currently in the growth cycle with its revenue expected to grow three times in this coming year. This paper will be focusing on the 4Ps of Marketing for NJOY e-cigarette products and it will cover the Growth, Maturity, and Decline life cycles.
Current Product Description
NJOY electronic cigarettes look just like conventional cigarettes but they do not contain harmful chemicals like Tar and carbon monoxide. There is no danger of second-hand smoking since they do not produce smoke; instead, vapor is exhaled, which comparatively is safer for other people. Inside the e-cigarette are nicotine and glycerol and propylene glycol which gets heated and vaporized when the smoker inhales. The vapor then goes inside the smoker and delivers nicotine to be absorbed by the body. Since e-cigarette is battery operated, it can last longer than a regular cigarette. One disposable NJOY King e-cigarette has as much nicotine as a 20 pack conventional cigarette. These products look, feel, and perform like the real cigarette to give the best alternative experience to an existing smoker.
Growth Life Cycle Stage This product is currently in its growth life cycle. It entered the growth life cycle in 2009 when it gained much popularity among consumers and is expected to be in this stage until the government regulations banning smoking e-cigarettes in public places goes into effect in 2015.
Segmentation
Primary Target Market
Market-Mix Strategies for e-cigars in the Growth Stage (2009-2015)
Product
Price
Placement
Promotion
Concentrate on the look and feel of the actual e-cigs to resemble conventional cigars
$20 for one e-cigar which is equivalent to 7 conventional cigars which is $3 cheaper per cigar
Aisles of convenient stores and smoke shops at eye-level to increase awareness of the products
Ads in Cigar magazines
A market which would be beneficial for NJOY e-cigarettes is cigar smokers in the United States. NJOY is currently not producing any e-cigars but this would bring in increased revenue for the company if it was pursued. According to the Center for Disease Control and Prevention, as of 2009, cigar smokers accounted for 5.9% of the American smokers or an estimated 13.3 million people (Smoking and Tobacco Use, n.d.). This number is on the rise as smokers become more health conscious and they are opting for cigars for their less harmful ingredients. There are e-cigars already out in the market and if NJOY introduced its own, combined with its highly regarded reputation, it would be good for the company’s revenue
Secondary Target Market
Market-Mix
