Beruflich Dokumente
Kultur Dokumente
Submitted To:
PROF. SIDDHARTH BANDKAR
Submitted By:
Samarjeet Biswas - 50
Manish Asnani - 02
Sharath Pillai - 35
Amit Deora 60
Siddhesh Surve - 40
CONTENTS
Page number
1. Executive Summary
2. Introduction
3. Literature Review
4. Research Methodology
5. Data Analysis
11
6. Findings
16
7. Conclusion
19
8. Recommendations
19
9. Limitations
20
10. Bibliography
21
25
2|Page
EXECUTIVE SUMMARY
The topic which was considered for research by the research group was to understand the
awareness and purchase intension of consumer for Tobacco Free Electronic Cigarettes. This
was taken for study as the electric cigarettes was introduced to be the solution for antismoking in the country. The topic was taken into consideration so as to understand the
present awareness level of the anti-smoking electric cigarettes and would help to create
awareness of adopting the anti-smoking products and also to launch a product - tobacco free
electronic cigarette.
The study was initiated with the help of Explorative Research. The research proposal gives
the statement, objective for the research work. The research proposal also gives the list of the
proposed literature review books and the research proposal also focuses on the benefits of the
study. The research proposal considers, what design methods and the design tools that can be
used and the ones we plan to use. Here, we also give the sample of the final form of the
results. The research proposal is comprehensive study of the proposed research that we plan
to conduct. The main aim of conducting the research is to find out whether there has been
awareness of electric cigarettes.
The secondary research has been done using various books and using various websites giving
the details about anti-smoking cigarettes.
The primary study was conducted on a set of 127 respondents with the help of Nonprobability sampling method and the sample being from Internet users who smokes. The data
collection method adopted was the Survey method. The instrument used was Questionnaire
and the contact method used was online survey. In the survey various questions seeking
information about the anti-smoking cigarettes, the awareness about the product and reason for
adopting this.
The research report would help to determine the current level of awareness and would help to
find the problem with electric cigarettes. One could use this report to decide on the future
plan of to create awareness among the public.
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The major limitations of this project can be missing responses, bias responses, constraints due
to time and coverage of research. The ultimate aim of the research is to find out What factors
are responsible for the low acceptance of anti-smoking product in the market and how can it
is improved if proper corrective measures are taken.
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Introduction
Electronic cigarettes are a recent development in tobacco harm reduction. They are marketed
as less harmful alternatives to smoking. Awareness and use of these devices has grown
exponentially in recent years, with millions of people currently using them. This systematic
review appraises existing laboratory and clinical research on the potential risks from
electronic cigarette use, compared with the well-established devastating effects of smoking
tobacco cigarettes. Currently available evidence indicates that electronic cigarettes are by far
a less harmful alternative to smoking and significant health benefits are expected in smokers
who switch from tobacco to electronic cigarettes. Research will help make electronic
cigarettes more effective as smoking substitutes and will better define and further reduce
residual risks from use to as low as possible, by establishing appropriate quality control and
standards.
RESEARCH OBJECTVE
a) The basic objective of this research is to gain an understanding, the awareness and
purchase intension of the people who are smoker studying the attributes and find the
key drivers that can tie in the findings to marketing strategy.
b) Segment the smokers into smokers who tried quitting smoking vs. smokers who
didnt. How big are these segments? What is their profile in terms of age, income,
SEC, psychographics etc.
c) Among smokers who tried quitting, What were the reasons for them to consider
giving up smoking? What all quit methods were they aware of (top of mind and
aided)? What were their sources of awareness?
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LITERATURE REVIEW
Over the last few years, the major players in the Tobacco industry have experienced a decline
in revenue from the sales of the traditional cigarette due to the increasing popularity of ecigarettes worldwide.
A decrease in their revenue from traditional cigarettes coupled with increased tobacco taxes
are forcing them to invest in the Global E-cigarette Market. E-cigarettes are considered less
toxic than traditional cigarettes because they produce vapor instead of smoke. They are
considered an effective method of helping smokers quit smoking, though there is no
scientifically-grounded evidence for this. Although e-cigarettes have exploded in popularity
worldwide, India has not been so quick to jump on board the e-cig train.
India has roughly 110 million tobacco smokers. Thus far, e-cigarettes have not been able to
compete with traditional cigarettes because of lack of awareness and the comparatively high
cost of e-cigarette starter kits. The lack of regulations regarding e-cigarettes is also affecting
the market.
inhales and exhales. An e-cigarette is also known as an e-vaping device, a personal vaporizer,
or an e-nicotine delivery system. It contains a heating element that vaporizes liquid nicotine
or a flavored liquid. The e-liquids used in e-cigarettes are available in different flavors such
as pink bubble gum, menthol, watermelon, and peach.
E-cigarettes are not considered as Nicotine Replacement Therapy (NRT) products because
of the lack of significant clinical testing in India. Rather, they are sold as "a healthy
alternative to traditional cigarettes. Many online sites sell e-cigarettes citing their advantages
over tobacco products and claim that "no harm" is caused to those who use them.
Recently, tobacco companies have realized that the e-cigarette market in India presents a
large addressable market to grow and earn huge profits. The high price of e-cigarette starter
kits allows only a small fraction of smokers to switch to e-cigarettes. An e-cigarette
costs US$6-US$8 per stick in India. The starter kits of recognized brands are available
for US$50-US$80 and above.
This offers a huge opportunity for e-cigarette vendors in India if smokers can be encouraged
to switch to e-cigarettes. The e-cig market in India is also witnessing the development of
innovative products with additional features, an extensive understanding of customer needs,
and imaginative marketing.
As big tobacco companies are primarily interested in e-cigarettes, they are providing accurate
information about nicotine use and other health problems associated with smoking tobacco,
thereby trying to portray e-cigarettes as suitable alternatives to tobacco products.
While the e-cigarette market in India is still in its infancy, the Tobacco industry is taking an
active interest in this new-generation product, and vendors are investing significantly in
acquiring small entities and organizing advertising and promotional strategies.
The Cigarette market in India is dominated by four major vendors:
Big
ITC
VST Industries
Golden Tobacco
tobacco
companies
such
as BAT, Philip
Morris
International,
and Japan
Tobacco have stakes in these leading companies in India. BAT and Philip Morris
7|Page
International have recognized brands of e-cigarettes in the global market. There are several
vendors in the e-cigarette market in India, but they lack organized e-cigarette selling
strategies.
Few vendors use retail outlets to sell their products while many generate revenue through
online sales. Tobacco companies promote their e-cigarette brands through celebrity
endorsements. They also try to differentiate their brands from those of the Pharmaceuticals
industry.
In addition, the increased demand for e-cigarettes is increasing the market's lucrativeness and
forcing retailers and cigarette sellers to stock e-cigarettes, cartridges, and e-liquids. Online
sales constitute the majority of the market share. The entry of leading cigarette manufacturers
into the market is expected to increase the number of distribution outlets around the
country. This will help increase the revenue of the market during the forecast period.
An electronic cigarette is made of 2 parts; a cartomiser and a battery. The cartomiser is made
up of two components, a cartridge and an atomiser. The atomiser is an element in the
cartomiser that heats up andis responsible for vaporising the eliquid. The cartridge is located
at the end of the cartomiser and contains the e-liquid. The battery is a lithium-ion battery. The
battery is the largest part of the electronic cigarette and is responsible for powering the
atomiser and LED light in the tip which lights up purple as you puff.
Study shows that analysts forecast the E-cigarette market in India will grow at a CAGR of
63.38 percent over the period 2013-2018.
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RESEARCH METHODOLOGY
a. RESEARCH APPROACH:
We have basically conducted a primary survey among smoker or any member of their family
is a smoker in order to collect the required information. Thus the basic research approach
would be primary research, though a substantial amount of secondary research has also been
conducted in order to collect supplementary data.
b. RESEARCH DESIGN:
The research design that we have used is exploratory in nature. This is so because, through
this research we are trying to explore deeper into the lives of these consumer. This includes
their attitudes, beliefs, lifestyles, preferences, likes and dislikes, desires and expectations.
c. RESEARCH TOOL:
The primary research tool used here is the questionnaire. A questionnaire consisting of 17
questions was first framed in order to gain insight into various aspects of the attributes which
will influence anti-tobacco smoking with demographics, Key drivers and factors.
d. SAMPLING SIZE:
Due to various constraints, we have limited our study to the city of Mumbai only. Out of our
entire target population, we have selected 111 respondents belonging to various age groups
and have specifically categorized them into categories as mentioned below:
Gender
Frequency
Valid
Percent
Valid Percent
Female
119
8
93.7
6.3
93.7
6.3
Total
127
100.0
100.0
Male
Cumulative Percent
93.7
100.0
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Marital status
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
Married
51
40.2
40.2
40.2
72
56.7
56.7
96.9
1.6
1.6
98.4
Divorced or separated
1.6
1.6
100.0
127
100.0
100.0
Total
e. SAMPLING TECHNIQUE:
The sampling technique used here is Convenience Sampling AND Quota Sampling.
Male/Females were randomly approached through social media like facebook, whatsapp and
gmail groups.
f. METHODS OF DATA COLLECTION
The data collection method adopted was the Survey method. The instrument used was
Questionnaire and the contact method used was online survey.
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DATA ANALYSIS
1. Regression Analysis:
Descriptive Statistics
Mean
Std. Deviation
How willing are you to
purchase a new anti-Smoking
(Tobacco free) cigarette with
advance features.
Model
3.31
1.616
127
Health warnings
Affects Your Looks and Life
3.37
1.367
127
2.96
1.300
127
2.76
1.318
127
2.08
1.325
127
Family members
Peer Pressure
Heart problem / Lung problem
3.10
2.52
1.362
1.302
127
127
3.02
1.439
127
Model Summary
R Square
Adjusted R Square
R
.611b
.373
.336
1.317
a. This table tells you 37.3% % of variability in the DV is accounted for by all of the IVs
together (its a multiple R-square).
b. Predictors: (Constant), Heart problem / Lung problem, Pregnant or Partner pregnant,
Affects Your Looks and Life, Family members , Peer Pressure, Health warnings, Poor
Skin Tone
ANOVAa
Model
1
Sum of Squares
Df
Mean Square
Regression
122.652
17.522
Residual
206.371
119
1.734
Total
329.024
126
Sig.
10.104
.000b
a. Dependent Variable: How willing are you to purchase a new anti-Smoking (Tobacco free) cigarette with
advance features.
b. Predictors: (Constant), Heart problem / Lung problem, Pregnant or Partner pregnant, Affects Your Looks
and Life, Family members , Peer Pressure, Health warnings, Poor Skin Tone
Interpretation: This table confirms that F-test value (10.104) to determine the model is a good
fit for the data. According to this p-value, it is.
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Coefficient
Model
(Constant)
Unstandardized
Coefficients
Standardized
Coefficients
Beta
.619
Std. Error
.417
Health warnings
.147
.105
.423
Sig.
1.483
.141
.125
1.397
.165
.154
.340
2.748
.007
.269
.150
.220
1.799
.074
-.070
.103
-.057
-.676
.500
.054
.105
.045
.511
.610
-.144
.111
-.116
-1.297
.197
.178
.095
.158
1.862
.065
SPSS output for the PCA: We have used the following option in SPSS o extract
the factors or components.
Descriptive Statistics
Mean
Std. Deviation
Analysis N
Health warnings
3.37
1.367
127
2.96
1.300
127
2.76
1.318
127
2.08
1.325
127
Family members
3.10
1.362
127
Peer Pressure
2.52
1.302
127
3.02
1.439
127
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Bartlett's Test: As KMO test gives us a value of .639 , hence the accuracy of
model is fine with sample size of N=127 . As the Bartlett's Test is significant (of sig.=0), we
conclude there is at least one meaningful Correlation between variables
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.639
Bartlett's Test of Sphericity
Approx. Chi-Square
266.810
df
21
Sig.
iii) Communalities:
.000
The below column of Extraction has values all greater then 0.3, hence this
values represent the variability of each variable accounted for in the model. The largest
variability of variable explained is that of Poor Skin Tone .i.e. (.855). There doesnt exit
any low Communality with extraction value less than .2.
Communalities
Initial
Extraction
Health warnings
1.000
.797
1.000
.852
1.000
.855
1.000
.782
Family members
1.000
.642
Peer Pressure
1.000
.558
1.000
.585
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iii) Total
Variance Explained: We now look into the Extraction Sums of Squared Loadings,
the Total column has Eigen values of the 3 factors or components and the Cumulative %
represent the total variance explained by the 2 component factor solution. As we have used
Direct Oblimin method of rotation, the last column represents the rotated factor Eigen values
or factor Loadings.
Total Variance Explained
Component
1
Initial Eigenvalues
% of
Total
Variance
2.897
41.384
Cumulative
%
41.384
Rotation
Sums of
Squared
Loadingsa
Total
2.475
1.159
16.558
57.942
1.159
16.558
57.942
1.865
1.015
14.502
72.443
1.015
14.502
72.443
1.608
.719
10.272
82.716
.642
9.174
91.890
.374
5.347
97.237
.193
2.763
100.000
We can conclude that for the 3 attribute from highlighted in yellow has high factor loading on
one component (greater than .5), 2 attribute highlighted in blue have high factor loading for
2nd component, and remaining 2 attribute have high factor loading for 3rd component
Pattern Matrixa
Component
1
Health warnings
0.053
0.889
-0.161
0.892
0.164
-0.135
0.952
-0.084
-0.019
0.066
-0.143
0.877
0.414
0.623
Peer Pressure
0.609
-0.004
0.292
0.029
0.722
0.135
Family members
1
Affects Your Looks and
Life
Poor Skin Tone
Peer Pressure
Factor/Component
2
Health warnings
Family members
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FINDINGS
Demographic Details:
Our survey is based on Convenience Sampling AND Quota Sampling. We have also
analyzed our questionnaire on the basis of some demographic details like marital status and
Age groups.
1. Marital Status: - Below is the split in for marital status. We have consider
Marital Status
2%
Married
2%
40%
56%
Living with a domestic
partner
Divorced or separated
cigarette smoked.
30
20
10
0
0
1 to 5
6 to 10
11 to 15 16 to 20 31 to 35
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No
Yes
0
4.
20
40
60
80
Quitters vs Non Quitters Profiling: Below is the profiling table i.e. gender,
education, marital status and income level of quitters and non-quitters profile
Tried to Quit Smoking in Past 12 Months
Yes
No
Table N %
Gender
Marital status
Male
5.5%
.8%
Married
31.5%
8.7%
43.3%
13.4%
1.6%
0.0%
Divorced or separated
1.6%
0.0%
Widowed
0.0%
0.0%
.8%
0.0%
0.0%
0.0%
Some/completed Elementary
0.0%
0.0%
Some/completed
Intermediate
0.0%
0.0%
Some/completed Secondary
2.4%
0.0%
Some/completed College
7.9%
0.0%
Graduate
46.5%
11.8%
Post Graduate
20.5%
10.2%
0.0%
0.0%
Full-time
61.4%
18.1%
Part-time
5.5%
0.0%
Pensioner
0.0%
1.6%
.8%
0.0%
Student
2.4%
0.0%
Housewife
0.0%
0.0%
Business
7.1%
2.4%
Refused to answer
.8%
0.0%
Up to 450,000 Lac
36.2%
7.9%
Refused to answer
OCCUPATION
HOUSEHOLD
21.3%
Female
Illiterate
EDUCATION
Table N %
72.4%
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INCOME
(Annually)
450,001-800,000 Lac
22.0%
5.5%
800,001-1,200,000 Lac
11.0%
6.3%
8.7%
2.4%
5.
Awareness - Anti smoking (Tobacco free): - Below is the list of brand respondents
are aware of, we see there are 76% respondents aware of some brand.
6.
Awareness - Anti
smoking(Tobacc
o free)
Source of Awareness - Anti smoking (Tobacco free): - Below is the list of sources
of brand aware of, we see there are 56% respondents aware from friends.
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CONCLUSIONS
We see there are about 76% of respondents aware of the different product available in
the market but 90% of the respondents have not used the product. Hence there seem to
be a problem with the marketing communication of the product or availability of the
product in the market.
Conclusion From Factor Analysis:
1. We have 3 major factor solutions that explain the variability of all the 7 attributes in 3
factors.
2. Below is the bifurcations:
1
Affects Your Looks and
Life
Poor Skin Tone
Peer Pressure
1st
2nd
3rd
Factor/Component
2
Health warnings
Heart problem / Lung
problem
3
Pregnant or Partner pregnant
Family members
RECOMMENDATION:
Distribution The distribution channel for E-Cigarette must be strong to achieve a
acceptance in a market for example Out of every 3 pan bidi shop at least one shop
should have availability of the product.
Product Taste As per the survey report Taste of the E- cigarette should be similar
to Traditional Tobacco Cigarettes
Promotion A strong promotional activity campaigns should be conducted near Well
Known Pan bidi shops and also to tie up with Anti-tobacco NGOS to create strong
awareness in the minds of smokers.
Benefits E- Cigarettes benefits should be clearly demonstrated in order to achieve a
success in the market
19 | P a g e
The survey was conducted through internet due to time and money constraints
2.
The sample size was restricted to 150 also due time constraints and hence is not
representative of the entire population.
3.
Also not all parameters under the heads of attributes and factors etc have been
covered.
4.
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Bibliography
Websites:
-
http://www.medscape.com/viewarticle/822398
http://en.wikipedia.org/wiki/Electronic_cigarette
http://www.technavio.com/blog/e-cigarette-market-gaining-steam-in-india
http://www.newindianexpress.com/cities/hyderabad/Growing-use-of-e-cigarettesworries-health-experts/2013/07/09/article1674207.ece
http://www.mumbaimirror.com
http://www.indianexpress.com
http://timesofindia.indiatimes.com
21 | P a g e
Annexure
Q1. Are you a smoker?*
Yes
No
Q2. What is your age?*
1 to 5
6 to 10
11 to 15
16 to 20
25 to 30
31 to 35
35+
Awareness Section
Q4. Tried to Quit Smoking in Past 12 Months?*
Yes
No
Q5. Rate on (1-low to 5-High) for the following attribute that makes you Think about Quitting
1- Low
5- High
Health
warnings
Affects
Your
Looks
and Life
Poor
Skin
Tone
Pregnant
or
Partner
pregnant
Family
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1- Low
5- High
members
Peer
Pressure
Heart
problem /
Lung
problem
Q6. Anti-smoking (Tobacco free) product you Aware of?* Please select all that apply
Others
Dont know
Q7. How did you become aware of these E-cigarette (saw advertising/communication on*
Please select all that apply
Dont Know
Other:
Q8. Anti-smoking (Tobacco free) product you used? * Please selects all that apply
Others
Dont know
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Q9. How willing are you to purchase a new anti-Smoking (Tobacco free) cigarette with advance
features.*
Low
High
Rs 20-30
Rs 30-40
Rs 50-60
Rs 60+
Q11. Will you recommend E-Cigarette to friends?*
Yes
No
Q12. Rate on (1-low to 5-High) for the following features you would like to be for E- Cigarette*
1- Low
5- High
Taste Like
cigarette/Flavored
Cigartte
Reasonable price
Availability
Appearance
Size and shape
Good Packaging
Demographics Section
D1. Gender*
Male
Female
D2. Which of the following best describes your marital status?*
Married
Divorced or separated
Widowed
D3. EDUCATION*
Illiterate
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Some/completed Elementary
Some/completed Intermediate
Some/completed Secondary
Some/completed College
Graduate
Post Graduate
Refused to answer
D4. OCCUPATION *
Full-time
Part-time
Pensioner
Student
Housewife
Business
Refuse to answer
D5. HOUSEHOLD INCOME (Annually)*
Up to 450,000 Lac
450,001-800,000 Lac
800,001-1,200,000 Lac
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