MARKETING 2: Analysis of Nicorette Vape Product Marketing Strategy

This report provides a comprehensive marketing analysis of Nicorette's one-off vape product, focusing on its introduction and positioning within the Australian market. The analysis begins with an executive summary that highlights the key impacts of the marketing theory on the market mix, segmentation, targeting, and positioning. It then delves into the industry background, mission statement, and goals of the firm. The report extensively examines the marketing environment, differentiating between the macro and micro environments, with detailed discussions on demographic, economic, physical, technological, political-legal, and social-cultural components. The microenvironment section covers corporate partners, competitors, and market intermediaries. A significant portion of the report focuses on Segmentation, Targeting, and Positioning (STP) strategies, including demographic, psychographic, lifestyle, and geographic segmentation. The marketing mix of Nicorette, including product, price, place, and promotion, is thoroughly analyzed. The report concludes by summarizing the key findings and implications for Nicorette's marketing success in Australia. This report provides a good overview of the marketing plan and the factors that affect the success of Nicorette in the 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