Marketing Analysis of Nicorette: Impact of Marketing Theory on the Market Mix

This analysis focuses on the impact of marketing theory on the market mix and its sub-components, with a specific focus on the Nicorette brand in the Australian market.

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BUMKT1501
Tong Miao
30350187

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Executive Summary
The key purpose of this analyzes on the marketing theory which brings a general impact
on the entire market mix and its sub-components by outlining the markets of interests. Impacts
related to this marketing strategy are also understood to arise from the marketing mix, a well
analyzed and established marketing environment in addition to other factors related to
positioning, market segmenting as well as targeting. From the up-to-date view of marketing, 3
elements are acknowledged. Such elements comprise of the concept of client's value,
management of customer relationships as well as viewing marketing strategy to be a function of
the organization in general. On the other side, the marketing mix is a collective term for the 4P's
which an acronym is standing (product, promotion, pricing, and place). In this paper we shall
focus on discussing the one-off vape product which is the product will greatly exist in the
Australian market and its brand is Nicorette.

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Table of Contents
Abstract............................................................................................................................................ii
Introduction......................................................................................................................................1
Industry background........................................................................................................................2
Mission statement........................................................................................................................2
Goals of the firm..........................................................................................................................3
Marketing Environment...................................................................................................................3
Definition.....................................................................................................................................3
Importance of Marketing Environment........................................................................................4
Components of marketing environment.......................................................................................6
Macro Environment.....................................................................................................................6
1. Demographic environment.............................................................................................7
2. Economic component......................................................................................................7
3. Physical environment......................................................................................................8
4. Technological environment............................................................................................8
5. Political-legal environment.............................................................................................8
6. Social-cultural environment...........................................................................................9

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Microenvironment........................................................................................................................9
Brand overview.......................................................................................................................9
Product overview....................................................................................................................9
Corporate partners...............................................................................................................10
Public.....................................................................................................................................10
Competitors...........................................................................................................................10
Market intermediaries.........................................................................................................11
Segmentation, Targeting, and Positioning (STP)..........................................................................11
Segmentation..............................................................................................................................13
a. Demographic variables.................................................................................................13
b. Psychographics..............................................................................................................14
c. Lifestyle..........................................................................................................................15
d. Geography......................................................................................................................15
Marketing Targeting..................................................................................................................15
Product positioning....................................................................................................................15
Marketing mix of Nicolette...........................................................................................................16
Product in the marketing Mix of Nicorette................................................................................16
Price in the marketing Mix of Nicorette....................................................................................17
Place in the marketing Mix of Nicorette....................................................................................17

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Promotion in the marketing Mix of Nicorette............................................................................17
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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Introduction
Nicorette is the brand name of the one off-vape products for the nicotine replacement therapy
( NRT) which contain nicotine. The Nicorette brand was developed in the late 1970s by the
industry called AB Leo which is based in Sweden. The Nicorette product was manufactured by
McNeil Consumer Healthcare Company which is a subsidiary of Johnson & Johnson.
GlaxoSmithKline is Nicorette gum license holder in the United States and on the other hand,
Johnson & Johnson is an industry which is responsible for marketing the Nicorette globally.
Nicorette is among the one-off vape brands whose establishment across the country is
rapid as far as e-cigarettes are concerned. Nicorette is fully owned by Nicorette Company which
is located in Australian and it is an entity on its own-originality. As its newest brand, Nicorette
Company has continued to be given good reviews for the brand’s vapor production.
Great economic advancement has been witnessed in the tobacco industry within
Australia as well as in other globalized nations. This industry has seen its success due to the high
acceptability of its products by their customers and also due to its effective marketing strategies
which have made the cigarettes of innumerable brands to be highly recognized. This industry’s
marketing strategies have ensured that children, as well as non-smokers, are not among their
targeted segments as far as their product promotion is a subject of concern (Olson, Slater, Hult &
Olson, 2018).
The marketing theory brings a general impact on the entire market mix and its sub-
components by outlining the markets of interests. Impacts related to this marketing strategy are
also understood to arise from the marketing mix, a well analyzed and established marketing

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environment in addition to other factors related to positioning, market segmenting as well as
targeting. Furthermore, all the above baselines of the tobacco industry’s success are engulfed by
the marketing mix (Fahy & Jobber, 2015).
The marketing process has been undergoing through various sets of evolution in terms of
service marketing, network-based B2B (business-business) marketing as well as relation-based
marketing. It has ensured that the exchange processes become affected through centralizing
interaction as a concept. This means expediting the form as well as the mode of interactions amid
the consumers and resource suppliers (Cacciolatti & Lee, 2016).
From the up-to-date view of marketing, 3 elements are acknowledged. Such elements
comprise of the concept of client’s value, management of customer relationships as well as
viewing marketing strategy to be a function of the organization in general. On the other side, the
marketing mix is a collective term for the 4P’s which is an acronym standing (product,
promotion, pricing, and place) (Hansen, McDonald & Mitchell, 2017).
This report has therefore chosen and analyzed one of the Australian tobacco firms;
Nicorette Tobacco Firm for explaining the power as well as the feasibility strength of this
industry as far as marketing is of concern. One-off -Vape is the chosen product whereas
Nicorette is the desired brand in this report.
Company/brand
Nicorette is among the one-off vape brands whose establishment across the country is
rapid as far as e-cigarettes are concerned. Nicorette is fully owned by Nicorette Company which
is located in Australian and it is an entity on its own-originality. As its newest brand, Nicorette
Company has continued to be given good reviews for the brand’s vapor production.
Plan

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This plan includes all the processes and factors which affects the success of Nicorette in
the market. Therefore, the plan of this report is to discuss more details concerning Nicorette and
its entire market in Australia.
Industry background
The Nicorette brand begins with chewing come from nicotine which was developed in Sweden
(Helsingborg) by the company called Leo AB and later the product was developed in pharmacai
& up John. In addition, Nicorette was the first product for the nicotine replacement therapy and
gain their inventory, over Ferno titles such as the founding father of modern pharmacotherapy
for smoking.
In addition, the firm provides its worldwide clients with various brands of cigarette and
this context, Nicorette is the brand of concern. It is one of the profit-oriented firms which aim to
enjoy a maximum return by ensuring that a good marketing strategy is put in place (Ferrell &
LeClair, 2015).
Mission statement
Nicorette Tobacco firm is an organization that was developed to fill in the breach that
existed as well as providing an efficient product that meets the various tastes of customers within
Australia and even globally. Whether focusing on making a profit or overcoming its competitors,
the firm aims at broadening customer experience.
Goals of the firm
 To produce the best products to be used in both the local market as well as in the
global market

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 To equip their clients/ employees with the desired knowledge of the general
environment
 To be an example in integrating the ancient methodologies with the current
trends in the field of marketing (Patrutiu-Baltes, 2016).
Marketing Environment
Macro Environment
External factors are categorized into types known as macro and microenvironment.
Macro environment as one of the types of external environment refers to forces outside an
organization whose effects are felt in the entire industry (Moon & Kamakura, 2017). In contrary
to the microenvironment, the broad environment does not pose its effects on the organization
directly but rather on the Tobacco industry as a whole. This component is further subdivided into
six (6) sub-components which are discussed below:
1. Demographic environment. Includes the general population in a given niche.
2. Economic component. Relates to those factors influencing the purchasing power of
the client.
3. Physical environment. Relates to the natural surrounding under which the
organization carries out its operations.
4. Political-legal environment. Includes all the laws and policies governing the
operations of the tobacco industry.
5. Social-cultural environment. Covers the general lifestyles as well as the cultural
beliefs of the people.

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6. Technological environment. Relates to innovation as well as the adoption of
technology as a competitive tool.
1. Demographic environment
This is a subcomponent of the macro environment deal with the various people who are
the major constituents of the market. This environment uses factual investigation is its key
feature as well as segregating the entire population. If the population in high then the purchasing
of Nicorette brand will increase due to that many people will be opting to buy. In addition, the
population which used the off-vape product is the women and men which are between 30-35
years old this is individual with high-income earnings. The segregation process is affected
basing on the size of the population, population density, age as well as gender in addition to
occupation with the race (Lei & Moon, 2015).
2. Economic component
The economic factors such as saving rates, interest rate, foreign exchange rate, economic cycle,
and inflation rate greatly affects the operation of the Tobacco company. The Tobacco Company
can use the economic factors of a given country such as inflation and growth rate to focus on the
factors that will affect the development of the new products. Economic environment involves
those factors which possess the ability to influence the purchasing power of the customers of the
Nicorette Tobacco industry. It also captures the consumer's Nicolette-purchasing patterns. This
environment is so broad that it constitutes all services related to causes of inflation, interest rates,
distribution of income, incentives as well as subsidies from the government of Australia (Wang,
2015).

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3. Social environment
The culture of the society and the way of doing things can greatly affect the culture of the
organization in a given environment. Shared attitudes and beliefs of the population will take a
great part in how the marketers at the Nicorette brand will get to understand the clients of a given
market and how they design the marketing message for the new one off vapes product.
4.Technological environment
A company should do technological analysis of the company and also the speed at which the
company disrupts that company. Any organization that has got the hope of being in a long-term
existence in a market characterized by dynamic changes is left with no alternative of survival
other than to adopt the power of technology in its operations. Therefore, the technological
environment is composed of external forces such as developing innovative products/services,
conducting research for the purpose of development, inducing innovative-methodologies as well
as identifying technological-barriers. Therefore, this environment is the determinant tool used in
gauging the competitive edge of Nicorette Tobacco Company as well as being the key source of
threats/opportunity in the dynamic world of operation.
5.Legal environment
In many countries, the legal framework and various institutions are not strong enough to
safeguard the company’s intellectual property rights. Thus the company should carefully do
some evaluation before entering so that the company information will not be stolen. Some of the
legal consideration that the Tobacco Company should consider before entering into market

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includes employment laws, data protection, and consumer protection and e-commerce. (Chen &
Sheu, 2017).
6.Cultural environment
This is the last of the components of the Macro environment and it deals with the culture
and norms of the people of the society in which the industry based. This also covers the lifestyles
as well as prejudices of the people and they vary from one region to another, age and according
to religions. The establishment of a one-off- vape product in the Tobacco Company will
influence the use of Nicorette of the people in a different culture.
Microenvironment
The microenvironment is the 2nd type as far as the external environment is a topic of
concern. It is also referred to as ‘task environment’. It refers to the external forces which have a
direct effect on the organizational operations (Chen & Sheu, 2017). Such forces include:
Corporate partners
This refers to a set of various independent entities whose aim is to conduct business
together with the organization. They including agencies used for marketing, organizations for
conducting research, banks as well as the third party organization for instance firms offering
insurance services. The corporate partners who work hand in hand with Nicorette company are
the banks which they were giving loans for the company for expansion.
Competitors
A competitor is a key player or actor who plays its role in the equivalent field and with
identical target customers. They play a key role in ensuring fair competition which results in the

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production as well as the distribution of a quality product to the customers. Despite being an
external force, it influences the Nicorette Tobacco organization directly. This is, for instance, if
the competitor has lowered the price of a similar product, it will prompt the organization to
reduce its price too. The main competitor of Nicorette Company is the Nicotine Company since
Nicotine Company sells their products at a low price which convince many customers.
Also, if a competitor has adopted an innovative product/ innovative service it means it is
likely to handle many customers per unit time (Olson Slater, Hult& Olson, 2018). This will then
force the organization to improve its creativity so as to come up with a more innovative product
compared to that of its competitors. Otherwise, the organization will be outcompeted thus
becoming irrelevant in the market as far that particular product or even service is of concern.
Market intermediaries
This is made up of the parties which act as a link between the consumer of Nicolette
cigarette and the Nicorette Tobacco organization. The longer the distribution chain, the lesser the
profit created by the organization. This is due to the increased price of the brand which may shy
away from the potential customers.
Segmentation, Targeting, and Positioning (STP)
STP is one of the most strategic models applied in current marketing. Its usefulness is
depicted in developing plans for communicating the marketing process. This is because it helps
an organization in prioritizing propositions with the aim of developing and disseminating
personalized as well as relevant messages so as to enable engagement with its dissimilar
audiences. Furthermore, STP is essential in making a segment selection for an organization as
well as aiming to cultivate a market mix for a particular segment. The diagrams are used to give
a pictorial view of STP (Olson Slater, Hult& Olson, 2018).

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Figure 1
Segmentation
The segmentation theory states that buyers and sellers who are available in the market for short
term securities pose distinct motivations and characteristics that buyers and sellers of long term
maturity securities and intermediate. The theory slightly relies on the investment habit of the
company.
This is where a broad market is broken down into very small portions or segments so as to group
together customers basing on similarity of their needs or interests. In a simpler language,
segmentation is just similar to grouping (Schmidt-Hebbel, & Carrasco, 2016). So, therefore, in
order to achieve this, the following variables can be considered in segmenting a market:

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a. Demographic variables
This involves breaking down the audience of the organization basing on personal statistics
falling under any of the following combinations; age, income level, education levels, location,
race or family size. Using age, anybody under the age bracket of children is prohibited from
smoking cigarette while using gender, the organization has noticed men contribute to a large
section of cigarette smokers as to women.
b. Psychographics
This is concerned with emotions which are based on behavior and have a direct linkage to
choices to be made concerning purchases. These include the attitudes of the audience, hobbies,
and leadership traits. In order to build a psychographic profile, the following ways can be applied
in capturing relevant data. They include:
 Interviews: involves selecting a sample of the target audience. An effective interview
model helps the organization in gathering relevant and qualitative data so as to gauge the
reason that holds the customers stick to the organization.
 Customer data: sometimes the organization contains the data of what the desires of its
customers are. This is especially if the organization has got installed mechanisms for
accessing the customer’s history of purchase.
 Surveys: conducting surveys involves processes like those of interviews. Surveys only
differ from interviews in that they reach more individuals.
c. Lifestyle

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This Constitutes the hobbies entertainment as well as any other tasks done at free time.
This is useful to the organization, especially when looking for someone with some skills
(Schmidt-Hebbel& Carrasco, 2016).
d. Geography
It means drilling down by using geographical sites, for example, using regions or country.
Market Targeting
After the segmentation process, the organization now applies different marketing plans to
target its product towards the innumerable segments (Schmidt-Hebbel& Carrasco, 2016).
Therefore, in order to weigh each of the segment’s attractiveness, the following should be
factored:
 Criteria size. The market size should be of a reasonable size to allow segmenting.
 Accessibility. The selected segment ought to be accessed by the relevant team with ease.
 Money. The process should meet the cost/benefit analysis
 Different benefits. Each segment should handle a unique benefit.
Below are the segment variables for the new product in the company. They include:
 Demographic segmentation this is where market targeting is determined using
personal qualities such as the amount of income, age, and education.
 Lifestyles segmentation- it targets certain people who value the use of certain
products.
 Geographic segmentation this target a certain group of people in a certain region.

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 Behaviorism segmentation this is targeting of customers in the market based on
their interests and their experience.
Product positioning
Upon completion of the target marketing, it is now high time for the Nicorette Tobacco firm to
struggle in developing the overall product-image in customers’ minds. The first impression
regarding the Nicorette cigarette is done through positioning (Shao, & Bao, 2015). The
organization benefits from this process in that the product’s general perception is done on the
audience’s mind. The figure below shows an example of the product positioning map.
Figure 3

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Marketing mix of Nicorette
Nicorette is among the brands from new one-off vape product, which top in Nicorette
Tobacco whose role is to manufacture as well as taking part in selling cigarettes. Projection of
this brand is towards cigarette for adults as a product (Kaul, 2019). Therefore, in a detailed
discussion concerning the marketing mix, the following sections explain the general marketing
strategy. In the current e-cigarette market, one-off vape product is the one which is mostly
utilized in the market due to the reason that it’s found in low price, convenient use, zero learning
cost, and many other advantages. On the product of one-off vape, customers can enjoy exquisite,
soft good mouth fell, so as to achieve the experience of the oil absorption, no blast oil, no oil
leakage, and no storage oil.
Product in the marketing Mix of Nicorette
Nicorette is one of the highly conventional brands of one off-vape product in which its
produce by Nicorette Tobacco industry. One-off- vape product has several flavors which are
appropriate for both men and women, there are also some fruit flavors and tobacco flavors as
well. This product at the time will not have any harm since its flavor is not the same as that of
cigarette. The portfolio of its product is in various segments. The customers value the Nicorette
brand since it can give the customers a preferable taste as compared to other cigarette products.
The product will serve many customers since the established brand will not be harmful to the
customers. The one-off vape product is classified as a top-class Tobacco product which can be
consumed by many customers without the product being harmful to them.

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Price in the marketing Mix of Nicorette
The pricing objective that the industry will use is competitor-oriented, these pricing
objectives will limit the competitors from entering into the market and this pricing objective can
be achieved through the lowering of the prices of the product.
The pricing strategy that the industry will use is the competitors-based pricing, this is
where the company will set their own prices by comparing it with that of their competitors and
also to reflect the way they need consumers to deduce their own prices relatives to the offerings
of the competitors. This pricing strategy is very reliable to the industry in the selling of Nicorette
brand product to its consumers.
The price tactics which the company will use is the discount quantity, this tactic will
increase the number of customers buying the product will be given a certain discount depending
to the quantity of product brand that they have bought (Kaul, 2019).
Place in the marketing Mix of Nicorette
Once a product for instance cigarette has been produced and priced, the next step
involves critically distributing the brand, Nicorette. This involves adopting a very strong
distribution channel to cover all the areas identified in the segmentation process to be of
significance. Having been projected as one of the conservative products, the organization has
identified both the adult men as well as women to be the target of interest. The one-off vape
product will be distributed by sales and marketing agents who will be assigned to distribution all

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over the world. In addition, the retail shops will be open all over the country so that the product
would reach all the customers all over the world and also in the Australian industry.
Promotion in the marketing Mix of Nicorette
A good promotional strategy has been devised to ensure that the brand of the product
well communicated through launching a serious brand launch-campaign (Kaul, 2019). This has
been effected through some of the promotional techniques for instance through an online
advertisement. The promotional tools which the Tobacco company will use are creating
roadshows where the uses of the product will be explained to the customers. The main reason
why I used this advertising is that it can reach many customers all over the world. The budget
that will be used for the campaign is $120 dollars.
Conclusion
In the current world of competition, it is very paramount to adopt a good marketing
strategy to enable the organization realizes the desired profit. Choosing a brand should be
accompanied by a good promotional strategy too.

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