Contents

EXECUTIVE SUMMARY.............................................................................................................2
BUISNESS DESCRIPTION...........................................................................................................5
GENERAL DESCRIPTION OF PRODUCT:.............................................................................5
GENERAL DESCRIPTION OF BUISNESS:.............................................................................6
INDUSTRY BACKGROUND:...................................................................................................6
GOALS AND OBJECTIVES:.....................................................................................................6
UNIQUENESS OF THE PRODUCT:.........................................................................................7
MARKETING.................................................................................................................................7
RESEARCH AND ANALYSIS:.................................................................................................7
TARGET MARKET:...................................................................................................................8
MARKET SIZE AND TRENDS:................................................................................................9
COMPETITIONS:.......................................................................................................................9
MARKETING PLAN:...............................................................................................................10
MARKETING STRATEGY:....................................................................................................10
PRICING POLICY:...................................................................................................................10
ADVERTISING AND PROMOTION PLANS:.......................................................................10
MANUFACTURERS AND COSTS.............................................................................................11
MANUCTURERS:....................................................................................................................11
COSTS:......................................................................................................................................12
OPERATIONS..............................................................................................................................12
LOCATION:..............................................................................................................................12
TAXES:.....................................................................................................................................13
PROXIMITY TO SUPPLIERS:................................................................................................13
MANAGMENT.............................................................................................................................13
MANAGMENT TEAM:...........................................................................................................13
OWNER:....................................................................................................................................14
INITIAL FUNDS:.....................................................................................................................14
INVESTMENT:.........................................................................................................................14
CRITICAL RISKS.........................................................................................................................14
SWOT ANALYSIS.......................................................................................................................15
FLOW CHART.........................................................................................................................17
Financial plan.................................................................................................................................18
Cash Flow..................................................................................................................................19
EXECUTIVE SUMMARY

 Nowadays mostly people in the world are getting addicted to

tobacco cigarettes and these cigarettes are the main cause
of different heart diseases, disability and death.
 Cigarettes and other forms of tobacco including cigars, pipe
tobacco, snuff, and chewing tobacco contain carcinogens
(cancer causing compounds), tar, and other harmful
ingredients.
 Tobacco cigarettes contains nicotine although nicotine is
addictive and can be toxic if ingested in high doses, it
does not cause cancer. other chemicals are responsible for
most of the severe health consequences of tobacco use.
 Tobacco smoke is a complex mixture of chemicals such as
carbon monoxide, tar, formaldehyde, cyanide, and ammonia
many of which are known carcinogens.
 We want to introduce a product named as”eCig” and it will
work as a substitute for tobacco cigarettes.
 No tar and other harmful ingredients to the human body.
 No objections in during flights and non smoking zones.
 The concept of the business is simple and clear that we saw
this opportunity in the market that why not to introduce a
product that would be a substitute for tobacco cigarettes
and will have no harmful ingredients.
 Electronic cigarettes have been around for about 3-4 years
now, which is considered to be a very short time for any
technology. These are state of the art, cutting edge
 vaporizing devices designed to deliver nicotine in a safe
and effective manner.
 Electronic cigarettes are a safe source of nicotine.
Nicotine by itself has a lot of medical benefits and some
drawbacks to it, but it is not a carcinogen (cancer causing
compound). Electronic cigarettes do not have smoke, they
actually produce a vegetable glycerine based vapour that
actually feels and looks like ordinary smoke.
 We are providing the best alternative to the people which
will help people to quit smoking.
 By using this product people can smoke without having any
damage to their health.
 There are other nicotine replacements present in the market
for example (nicotine gums and patches),but people do smoke
while using them.
 Our product is totally a safe and effective nicotine
replacement and gives the same feeling and experience of
smoking as tobacco cigarettes do.

 It does not have any harmful effects on heath as it produces

vapours instead of smoke.

 The competitive advantage of our product will be that there

is no such product available in the market here in Pakistan.

 Electronic cigarettes take into account all three desires

from an ordinary tobacco cigarette and satisfies them in a
safe and effective manner.

1. Nicotine - It is the actual craving that a smoker has,

electronic cigarettes deliver nicotine through glycerine
 based vapour.
2. Throat Hit and Visual Sensation - Every smoker loves the
throat hit of smoke and enjoys the sensation of smoke coming
out of their mouths. Electronic cigarettes produce a fine
vapour that looks and feels exactly like smoke - Without the
harmful effects.
3. Taste - Smokers love the taste of their brand, electronic
cigarettes liquid delivers this taste through 'edible,
permitted food flavouring'.

 We have surveyed the market and analyzed that people want to

quit smoking but they cannot because they have not find any
good substitute for cigarettes.

 We have used the technology for the betterment of people and

as well as the society.

 As far as the manufacturing of the product is concerned will

place the order to the manufacturing companies in China.
This is because the manufacturing cost and labour cost is
low in as compared to other countries.
BUISNESS DESCRIPTION

GENERAL DESCRIPTION OF PRODUCT: The name of our product is

health eCig and the product is available in two types.

Types of eCig:
 Pen-type.
 Mini-type.

the device “health eCig” consist of following parts:

 Battery
 Atomizer
 Cartridge
 Charger
 Liquid

This device is a chargeable device and can work for 20

hours. the working of the device depends up on the usage of
the device. The device has an atomizer which changes the
liquid in to vapours. The cartridge contains liquid and the
liquid passes through the cartridge to the atomizer. It has
a charger which is used to charge the electronic cigarette.
The liquid contains nicotine; glycerine and flavour.there
are thirty six flavours available. The liquid has no other
harmful ingredients added in it.
GENERAL DESCRIPTION OF BUISNESS: The description of our
business is that each and every part of the product will be
manufactured in China by “galaxy group technology limited”.
as too much financial assistance is need to construct your
own manufacturing plants, so therefore we are giving the
contract of manufacturing of the product to this company.
Only the packaging would be done in Pakistan.

INDUSTRY BACKGROUND: The demand for the cigarettes is

increasing day by day. And mostly adults are attracted
towards the cigarettes. The tobacco industry is one of the
most taxed industries in the world, the actual cost of one
cigarette is in paisa's the rest is all tax. Pakistan has
the 2nd highest tax rate on cigarettes in the world, and now
after June 2010, the highest. So the government is earning a
high amount of revenue from these industries. People are
still buying and are consuming cigarettes even they know the
harmful effects of tobacco. Health ecig will not have to pay
any of these taxes since there is no tobacco involved.
Giving health eCig a competitive advantage. There are no
competitors in Pakistan who have their own brand name.

GOALS AND OBJECTIVES: The main objective is to achieve

maximum profits as there are no such competitors in the
market. In the initial stages the business will generate
maximum profits and then it will be expanded around the
country in different cities by opening outlets in different
cities. The objective of introducing this new product is
 also to provide a safe nicotine replacement and to provide a
healthier environment while using health eCig. As it do not
need any ignition and no carbon monoxide is produced.

UNIQUENESS OF THE PRODUCT: The product is unique because it

being introduced for the first time in Pakistan. Most of the
people have not seen this product. This product is available in
thirty six different flavours. The product is unique because it
has no harmful effects and provides the same taste and feeling as
tobacco cigarettes do. It has no objection in during flights and
non smoking zones.

MARKETING

RESEARCH AND ANALYSIS: We have surveyed and questioned smokers

that can they quit smoking? And the answer was “no” but when
we told them about my product electronic cigarette and about
the product features and benefits they were quite convinced.
People want to quit smoking but they do not find a suitable
alternative for cigarettes. Nicotine gums and patches are
available in the market but they are not the best suitable
alternatives. Research shows that 30-39% percent of the
Pakistani adults smoke and most of them have started smoking
in the age of 13 and 14,which has done a lot of damage to them
physically. Some of the adults smoke because they think that
smoking has a charm which reflects the personality and style.
Most of them are influenced and impressed by different
celebrities who smoke different brands while playing different
characters in the movies. The product “health eCig” satisfies
their needs of style and their habit of smoking.

TARGET MARKET: The target market for our product is:

 middle
 Upper middle
 Elite class

This is because our product is a bit costly and these

people can afford it easily. Once u buy u do not need to
buy it again and again like tobacco cigarettes. The target
market we have chosen for my product is because these
classes are attracted towards new inventions and whenever
they see a new product in the market they buy it on trial
basis. If they like the product and are satisfied with the
product they tell their relatives and friends to afford
it. And it is easy to create awareness among those people
because they are literate and educated people. First we
will start our business in Islamabad and with the passage
of time I will extend my business in different cities.
MARKET SIZE AND TRENDS: The trends in the market changes with
time to time so people want new products which they have never
used before. New technological advancements are advancing and are
entering in to the market. Therefore we want my new product to be
introduced for the first time in Pakistan. It would attract the
people and it will make people to buy it and use it because
people over here have not seen such product.

COMPETITORS: There are no competitors for our product

in Pakistan, whereas there are some but they are doing
business in other countries. Health eCig is the first one to
introduce this product in Pakistan. The only competitors are
the nicotine alternatives in Pakistan and these are:

 Nicotine gums
 Nicotine patches

These are not competitors for our product but these are
alternatives for tobacco cigarettes. The competitors for our
product are doing their business abroad and they are:

 Palluchi
 E-lite
Whenever they want to start their business in Pakistan then we
will focus on competitive strategies.

MARKETING PLAN: marketing plan consist of many marketing

strategies which are as follows:

MARKETING STRATEGY: the sales of the product will be through a

website and through outlet which will b located in E-11 markaz.
We will also provide home delivery service anywhere in Pakistan.
This product will be delivered through courier services.

PRICING POLICY: the pricing policy for our product is:

Pen type:$65
Mini-type:$50
Liquid:$7

the price is in dollars because the manufacturing cost is charged

in dollars and as the dollar varies the manufacturing cost
varies.

ADVERTISING AND PROMOTION PLANS: The advertising strategies for

the product will be through:

 Sms marketing
 Email marketing
 University campaigns
 Banners
  Internet
 Radios
 Pamphlets

These are the marketing strategies for the product as these

are less costly and are efficient and effective. Advertising
in newspaper and on TV is quite expensive and that is why
other marketing strategies are adopted. Through sms
marketing large number of people can be targeted at lower
costs. Email marketing is another way to advertise product
and alot of people can be targeted in an efficient manner.
Pamphlets and university campaigns are another way of
effective marketing. Radios and banners are a useful means
to create awareness among the people about the product.

MANUFACTURERS AND COSTS

MANUCTURERS: manufacturers are located in Italy and China but

our product will be manufactured in china because in China labour
cost is low as compared to Italy. The name of the company which
will be producing this electronic cigarette is “galaxy group
technology limited.”

COSTS: The cost of the product from manufacturing to the shipment

process is as follows:
  Manufacturing cost per unit
pen type = $25
mini type= $20
 Freight costs=$20/kg
 Product weight= 0.3kg/unit
 Customs = 35%
 Cost per unit=$35 for mini and $40 for pen type(estimated)
 Cost of designing web site = 25000 rupees
 Sms cost = 0.10 paisas
 100000 emails for 8000 rupees
 Marketing expanses = 25000 rupees

These are the costs estimated for the pen type and mini type
electronic cigarettes because the value of the dollar varies
day to day. Freight costs and air fares is also a variable
factor so costs might change with time to time.

OPERATIONS

LOCATION: The location we have selected for our business is E-11

markaz Islamabad because it is the center of the city and is the
most attracted place in the city nowadays. The rent of the shops
in the markaz is quite reasonable as compared to other commercial
places in the city. Initially we will open an outlet in E-11 for
the product. No transportation is needed because people can visit
the outlet easily buy the product from the outlet. We also offer
home delivery through courier services. We don’t want any
transportation because it will increase our costs.
TAXES: There will be no taxes on the product because it a tobacco
free product. It is an electronic device not a tobacco consuming
product and it has nothing to do with the tobacco so it is free
from all the taxes.

PROXIMITY TO SUPPLIERS: The suppliers of the product are in China

so an efficient supply chain will be managed to ensure prompt
delivery of the product to the customers.

MANAGMENT

OWNER’s: Its a partnership type of business. The total

num of partners are 6 and have equal investment so
profit/loss share will also be equal.

INITIAL FUNDS: At the initial stage we will be investing

our own money. With the span of time when our business
starts to run smoothly then all the cost of the business
will be taken from the profit and other options would be
seeked.

CRITICAL RISKS

Critical risks are a part of every business so we have to be

proactive and find a solution and apply such strategies to
prevent the risks. The main critical risks involved in this
business are:
 Awareness
 Masses prefer conventional cigarette
 Costly
 Niche market
 Less availability
 Low demand for the new product
 Brand loyalty

These are the factors and risks which should be taken in to

account and produce solutions to tackle these risks. Awareness is
a major risk involved in the business so successful marketing
strategies should be implemented in order to make the venture
successful. Mostly people go for conventional cigarettes because
they think it has a different taste and feeling. Most of them are
brand loyal and they want to stick to one brand they don’t even
change their brand. Cost is another issue, as mostly people would
suggest that it is costly so not to try it and they cannot afford
trying it. Less availability of the product is another important
issue as it is not possible to make the product available in all
the cities and villages at the initial stages.
There is always been an issue for the demand of the new venture,
it is always seen that the demand for the new venture rises with
the passage of time. Mostly people are loyal to their brand and
they do not want to change their brand. So it is quite difficult
to change people’s mind and their perception.

SWOT ANALYSIS
 STRENGHTS:
 Uniqueness
 Innovative
 Attractive
 Easy to use
 No competition

WEAKNESSES:
 Costly
 Awareness
 Availability

OPPURTUNITIES:
 Market growth
 New demands
 Uniqueness

THREATS:
 Current situation of the country
 -Idea can be easily copied
 No control over cost due to manufacturing is outsourced

Financial plan
 BALANCE SHEET

ASSETS LIABILITIES

Office furniture
Long Term Debt 0
50000

Motorcycle 50000

Computer 25000

Inventory 500000

Owner’s equity 625000

TOTAL ASSETS 625000 LIABILITY + O.E 625000

Cash Flow

Inflows
 Revenues (1000X50$ +65$X500) Rs. 7012500($82500)

O.E 625000

Total Inflow 7637500

 Outflows

Electricity Charges 50000

Salaries 288000

Other Expense 50000

Tax 196187

Sum of Assets 625000

COGS 5100000

Total Outflow 6264187

Net Cash flow 1373312

INCOME STATEMENT

Revenues 7012500

Electricity Expenses 50000

Salary Expense 288000

C.O.G.S 5100000
Gross Profit 1574500

Other Expense* 50000

Earn before interest and tax 1524500

Tax(17%) 259165

EAT 1265335

Net profit 1265335