Vivid Vapor Lounge

David
Bisho
Sam
p
antha
G
Reya
na K erthe
as
Shan
non S sira
tien
Alicia
W
h
Linds
ey W iteis
hites
ide

Table of Contents
3. Introduction

17. Positioning & Market Strategy

3. Consumer Needs & Key Issues

18. Product

5. Market Research- Secondary Data

19. Promotion

6. Market Research- Primary Data

23. Budget

12. Consumer & Buyer Behavior

24. Place

13. Competition

25. Success/Popularity

14. SWOT Analysis

26. Possible Errors

16. Segmentation & Targeting

27. Sources

Introduction
About Vivid Smoke

Vivid Smoke launched an online

website in 2010 to sell personal
vaporizers as an alternative
method to traditional cigarettes.
They currently have a wide
variety of designs, kits, colors for
personal vaporizers but only sell
online.

Our Plan

We would like to open a vapor

lounge by UT Dallas so that we
can sell personal vaporizers to
UTD students and the
Richardson community.
We plan to have a personal
vaporizer bar where customers
can try the different flavors and
devices. We will also have a
lounge where customers can
hang out and smoke their
vaporizers.

Consumer Needs & Key Issues

Tobacco smoking has continuously proven to damage the health of

smokers and those around them. More than 16 million Americans suffer
from a disease caused by smoking.1 So, there is an increasing push for
Americans to quit smoking and vaporizers are an alternative to tobacco
smoking.
Most personal vaporizers are sold online or already pre-packaged in large
retail stores. There are very few places where you can actually try the
vaporizer and flavors before you buy the product.
College students like to have a place where they can relax and hang out
after classes that is within close proximity to campus.

Market Research
Secondary Data

42 million smokers in
the U.S.

Market Research
Primary Data - Consumer Behavior

We surveyed a
sample 50
people ages 1835

Of this sample
polled, 36% of
people live on
campus and 64%
of people live off
campus

Based on the
survey results, we
have compiled the
following sets of
data about interest
in personal
vaporizers and a
vapor lounge.

Market Research
Primary Data - Possible Market Size

67% of the sample polled do or have smoked (Cigarettes, cigars, hookah, etc.)
7

Market Research
Primary Data - Interest in Hookah Bars

48% of sample have been to a hookah bar

Market Research
Primary Data - Interest in Personal Vaporizers

Interest in
personal
vaporizers of
sample based
on four key
points
9

Market Research
Primary Data - Interest in Lounge Area

43% of sample were very interested, 35% of sample were

somewhat interested and 22% of sample were not interested

10

Market Research
Primary Data - What is Most Important in Lounge Area

Of the sample polled, 20%

primarily valued
entertainment, 42% valued
atmosphere, 30% valued
BYOB option, and 8%
valued size of lounge area

11

Consumer and Buyer Behavior

Considering 67% of people polled do or have smoked in some
fashion in their lives implies that there is a good market for
personal vaporizers as a healthier way to smoke
Considering 48% of people polled have been to a Hookah bar, there
is a sizeable interest in a lounge that would allow people to both
smoke their personal vaporizers and socialize at the same time.
The order of importance regarding the decision of which brand of
personal vaporizer to buy is as follows: First: the overall quality of
product, Second: The variety of flavors offered, Third: the price, and
Fourth: the ability to customize
Atmosphere is the primary concern regarding the lounge area to the
majority of people with the BYOB option coming in second,
entertainment coming in third, and size coming in fourth

12

Competition
Other E-Cig Brands and Vaporizers

Hookah Bars and

Lounges

Blu
V2 Cigs
Halo Cigs
Green Smoke
EverSmoke

Cloud 9

Vivid
Vapor
Lounge

Kush
Cairo Hookah Lounge
Sultan Cafe

WhiteCloud
Mig Cigs
13

SWOT Analysis
Strengths

Weaknesses

Opportunities

- Great location,
right by UTD.
- Cheaper than
hookah lounges.
-You can try
different flavors
before you buy.
-You can bring
your own vaporizer
to smoke.

-We will only be

selling and
promoting one
brand, Vivid
Smoke.

-This is a unique
idea, incorporating
a vapor store and a
lounge hangout
area into one.
-Great for people
who are looking for
healthier smoking
alternatives.
-Custom made
vaporizers.

Threats
- Competition of
other vaporizer
stores in the area.
-Competition of other
hookah lounges in
the area that are
already established
with clientele and
word
of mouth.
14

SWOT Analysis
Success Probability
High

Low

Probability of Occurrence

L
o
w

High

Low

H
i
g
h

Seriousness

Attractiveness

H
i
g
h

L
o
w

15

Segmentation and Targeting

Students at UTD and people in the Richardson
area who have an interest in smoking
alternatives, a social hangout close to campus,
and unique, customizable vaporizers.

16

Positioning
Convenient
Close to campus, eliminates the
need for online purchasing/delivery

Market Strategy
Product Development

Unique
A combination of both a store and
lounge, with customizable vaporizers
and the ability to test before you buy

Innovative

Offer customers new Vivid Smoke vaporizer

products, in the sense that they look unique,
also Vivid Smoke brand is not offered in other
retail stores.

Product Differentiation

Advantage by offering and selling unique and

different accessories for your vaporizer.
No other vaporizer stores have a lounge type
area like ours will.

The first lounge/store combination in the

Richardson area

17

Product

The vapor lounge will be decorated very

modernly with several couches, tables and
chairs.
There will be a vapor bar with an assortment of
vapor flavors that people can test.
We will also have vaporizers that customers
can test if they have never tried an e-cig before.
We will sell a variety of starter kits, devices and
accessories such as charger kits, cases,
charms and other items to personalize the
vaporizer.

18

Promotion

We plan to promote via social media websites such as Facebook, Twitter and
Instagram. We will offer coupons and run competitions with our followers through
these websites.
We also will create a viral YouTube video which will be linked to our social media
sites. This will spread the word among the UTD and Richardson community that the
lounge is opening and the products we have to offer.
Flyers will be distributed throughout campus and will have coupons attached as
seen in the example. These flyers will also be advertised through the UTD Mercury
to target the UTD population.
We will create a website specifically for the lounge which will be linked to Vivid
Smoke but it will have all the specifics of our lounge and the products we sell.
We will launch a large grand opening where we will give away free samples of
flavors and purchase signs to attract people to the vapor lounge for the first time.
19

Facebook
kjsdksal

Categorize Album by
Color, Model, Parts
Advertise New Lounge

Offer Discounts
Promote Videos
Trafficking Customer Actions

20

Twitter/Instagram

Lacking Pictures/ Add Pictures

Updates With New Events
Communication With Consumers

Add Happy Customer Pictures

Target opinion leaders for advertisement
21

Vivid Vapor Lounge

Located right next to UTD

HUGE selection of
flavors. Sample
them before you
buy!

!
B
O
BY

Hang out with

friends

Bring your UTD Comet Card and

receive 20% off your entire purchase

Buy a
vaporizer, get
1 flavor free

Flyer
Example

Buy 2
flavors, get 1
flavor free
22

Promotional Campaign Budget

Media

Cost

Campus Flyers (10,000 flyers every month for first 4

months)

$6,000 ($7.50 for 50)2

Facebook, Twitter, Instagram (Business Pages)

Free

Website

$480 annually ($40 per month for Web Domain and

Hosting)3

UTD Mercury Ads

$900 ($75 per ad per month)4

YouTube Video

Free

Grand Opening (Free Samples, Signs)

$2500

Total

$9,880

23

Place
Planned Location

There will only be one

lounge, located conveniently
close to the UTD campus.

24

Success/Popularity
Gaining popularity with booming business

44% E-Cig smokers are Millennials (19771994) (Forbes)

Our Goal: Generate revenue after 6

month milestone
25

Possible Errors
Uninterested consumers (Surveyed only
UTD students)
Health statistic warnings
Overall smoker statistics have declined over
the years
Small sample size (around 50 participants)
Many hookah/E-Cig lounges around Dallas
26

Sources
1.
2.
3.
4.
5.
6.

http://www.cdc.gov/tobacco/data_statistics/fact_sheets/fast_facts/index.
htm
http://www.vistaprint.com/flyers.aspx?couponAutoload=1&GP=4%2f25%
2f2014+6%3a44%3a31+PM&GPS=3167812934&GNF=0
http://asmallorange.com/hosting/business/
http://utdmercury.com/advertising/
https://www.drugfree.org/join-together/tobacco/one-fifth-of-adult-smokersin-united-states-have-used-e-cigarettes-cdc
http://www.cancer.
org/cancer/cancercauses/tobaccocancer/questionsaboutsmokingtobaccoa
ndhealth/questions-about-smoking-tobacco-and-health-how-many-use

27