Entrepreneurial Opportunity: E-cigarette Market Analysis Report

This report provides a comprehensive analysis of the e-cigarette market, focusing on entrepreneurial opportunities. It begins with an overview of market segmentation, differentiating between demographic and geographic factors to identify potential customer groups. The report targets young adults (18-25) and individuals with lower incomes, highlighting the appeal of e-cigarettes as a less harmful alternative to traditional tobacco products. It also discusses the business's targeting strategy, focusing on current and former smokers, as well as young professionals. The report emphasizes the growth potential of the UK e-cigarette market, citing its projected CAGR and comparing it to the global impact of tobacco-related deaths. It concludes with a summary of the business model, including startup costs and target customer needs, and references relevant sources to support its findings. The appendix includes a visual representation of the UK's e-cigarette market.

ENTREPRENEURIAL
OPPORTUNITY

TABLE OF CONTENTS
TARGET SEGMENT BENEFITS AND ATTRACTIVENESS.....................................................1
SEGMENT.......................................................................................................................................1
TARGET..........................................................................................................................................2
MARKET.........................................................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................4
APPENDIX......................................................................................................................................5

TARGET SEGMENT BENEFITS AND ATTRACTIVENESS
SEGMENT
Segmentation is replicated as process to divide market of potential customers in different
groups, or segments on basis of different features. As it is known that one organization could not
serve all consumers in entire market or at least with not profitability in similar aspect. Moreover,
variety of various kinds of consumers and their needs are very large (Chu and et,al., 2019). In
this aspect, here market has segmented on basis of demographic and geographic variable as its
detail description is stated. It had undertaken best step for marketing strategy as it had not tried
for laying emphasis on full market so it has divided in small segments which is very useful for
attaining success and competitive advantage:
Demographic segmentation: It is referred as market segmentation as per age, income,
gender and family size. This could be segmented in several markets which leads to organization
target its consumers in accurate aspect. For purpose of this business of E-cigarette as it is less
harmful comparatively to tobacco smoking as it is battery operated device which emits vaporized
nicotine or with non nicotine solutions to inhale (Diamantopoulou and et,al., 2019). As it has
similar sensation to inhale tobacco smoke and it has been extracted that smoking is very common
within age of 18 to 25 years as in every year it has reduced to 11.3 cigarettes each day. With this
context, this is the one reason is about prevalence of E-cigarette because this helps in reducing or
quit smoking. Smoking has been prompt by teens of age 13 to 17 years as mostly of them are
forced to try for first time and then it becomes habitual while knowing this leads to serious
disease such as cancer or any heart disease (First evidence that e-cigarettes may be prompting
UK teens to try the real thing, 2019). At the adolescence age, they are highly cautious for health
so preference of E-cigarette tends to higher.
On basis of income level, one who are earning less than £10,000 per year are at mode
who are facing stress and depression, so they try E-cigarette which helps to forget them their
issues at present level. This will lead to one more advantage to consumers is about affordability.
Age: 18 to 25 years
Income: Less than £10,000 per year
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TARGET
Targeting is replicated as strategy for purpose of selecting potential customers the
organization could sell its services or products as well. It is specifically done to particular target
group along with presence of different segments in any market. After assessment of each
segment targeting is directly concerned for evaluating attractiveness of segment for organisation
and selecting one segment to penetrate in market. In this business of E-cigarette it has targeted
youth with newfangled contraption and one who are current and previous tobacco users (Huang
and et,al., 2019). In simple words, as who are smokers they are not likely to stop smoking so
they give high weight to e-cigarette which helps to give up as in this market it had attained
growth of its users. Furthermore, the business has targetted youth and professionals as they are
served because mostly of them are addicted to smoking and wants to quit for health. This
business would be established in London, United Kingdom as it has various corporates and
universities which has tight schedule
MARKET
It has been forecasted that e-cigarette market in UK will attain growth at CAGR close to
30%. in order to this, growth momentum of market is expected for decelerate because of decline
in year over year growth. E-Cigarette is safer than tobacco products as tobacco smoking leads to
6 million deaths on global perspective. There are various strategies which will be used for
promoting e-cigarettes are influenced through involvement of tobacco industry as this will
position itself by selecting signal that will help in reducing or quit habit of smoking in affordable
cost. It has been derived about incremental growth by $4.05 bn by year 2022 and in 2018, it had
been estimated growth rate of 33.01% (McCausland and et,al., 2019). This market is fragmented
highly with various players occupied market share.
CONCLUSION
From the above report it had been concluded that e-cigarette is smokeless cigarette
powered through industry and is free from harmful chemicals consists in conventional cigarettes.
However, this leads against tobacco smoking as it will create huge market for e-cigarettes as it is
healthier substitute for addicts and even this could be smoked in areas where smoking is
prohibited. Furthermore, this business has requirement of £5000 as its initial start-up cost and its
current fixed cost would be salaries to its employees and rent. Thus, it had segmented young
generation who are working and facing stress mainly because of employment. Henceforth, E-
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cigarette are considered safer comparatively to tobacco products which is key driver for this
market.
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REFERENCES
Books and Journals
Chu, K. H. and et,al., 2019. Strategies to find audience segments on Twitter for e-cigarette
education campaigns. Addictive behaviors. 91. pp.222-226.
Diamantopoulou, E. and et,al., 2019. Patterns of e-cigarette use, biochemically verified smoking
status and self-reported changes in health status of a random sample of vapeshops
customers in Greece. Internal and emergency medicine. pp.1-9.
Huang, J. and et,al., 2019. Vaping versus JUULing: how the extraordinary growth and marketing
of JUUL transformed the US retail e-cigarette market. Tobacco control. 28(2). pp.146-151.
McCausland, K. and et,al., 2019. The Messages Presented in Electronic Cigarette–Related Social
Media Promotions and Discussion: Scoping Review. Journal of medical Internet
research. 21(2). p.e11953.
Online
E-Cigarette Market in UK. 2019. [Online]. Available through
<https://www.businesswire.com/news/home/20180910005694/en/E-cigarette-Market-UK-
2018-2022-Impending-Brexit-Boost>.
First evidence that e-cigarettes may be prompting UK teens to try the real thing. 2019. [Online].
Available through <https://www.bmj.com/company/newsroom/first-evidence-that-e-
cigarettes-may-be-prompting-uk-teens-to-try-the-real-thing/>.
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APPENDIX
Illustration 1: UK's E-cigarette market
(Source: E-Cigarette Market in UK, 2019)
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