E-Cigarettes: Target Market Identification Analysis

E-Cigarettes: Target Market Identification

Over the last ten years, electronic cigarettes (e-cigarettes) have become booming business. The e-cigarette is the first product ever that has the potential to significantly cut into the tobacco market. As traditional tobacco cigarette sales have declined over the years, new e-cigarette companies have been enjoying rapidly increasing sales.

Even though e-cigarettes is still relatively small and new market, a survey by Wells Fargo predicts that e-cigarette sales could hit $1 billion in 2013—with the potential to surpass sales and profits of traditional cigarettes. As a result, big traditional tobacco cigarette companies have sensed this as a new opportunity to increase profits in its current target market. For instance, traditional cigarette maker, Philip Morris USA, has plans to enter the e-cigarette business in late 2013 or early 2014.

E-cigarettes are essentially a cigarette-shaped tube that delivers nicotine through vapors when smokers take puffs. E-cigarettes provide that smokers even hold something shaped like a cigarette, while puffing and exhaling something that looks like smoke.

Smokers are beginning to recognize this as a pro of using e-cigarettes. Aside from the most obvious health benefit of quitting smoking, theoretically, e-cigarettes can even be used in places where smoking is banned; for example, in office buildings and restaurants.

Target Market Identification: Adult tobacco users who are looking for an alternative to tobacco.

Why they need a new product: Tobacco users who wish to cease or curb their tobacco addiction can now be satisfied with the nicotine they need or want without the presence of chemicals, tar or odor of regular cigarettes.

Location: Nationwide

Market Size: According to the Center of Disease Control, in 2012, approximately 60 million adult smokers. Globally—approximately 1.1 billion people.

Demographics: Current long-time smokers-Female and Male; Age: ≥ 18; Employment: Part-time and Full-time; Education: Minimum high school

Determining