SUBJECT: ENTERPRENEURSHIP & BUSINESS PLAN

TOPIC- HERBAL CIGARETTES (HONEY ROSE)

(ADD STYLE TO YOUR LIFE NATURALLY)

SUBMITTED TO: SUBMITTED BY:

Mr. RAJAN GIRDHAR SUSHIL BHALLA (26)
Lecturer in LPU RAJVINDER DEOL (27)
DEPART. OF MGT RAVNEET KAUR (28)
LSB AVINASH GUPTA (29)
SHAMMI (30)
GROUR: 6

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CONTENTS PAGE NO.

EXECUTIVE SUMMARY…………………………………………….. 3-5

INTRODUCTION……………………………………………………….. 6-8

SWOT ANALYSIS……………………………………………………….. 9

INDUSTRY ANALYSIS………………………………………………… 10

ORGANIZATION STRUCTURE……………………………………… 11

OPERATIONAL PLAN………………………………………………… 12-18

FINANCIAL PLAN……………………………………………………… 19-20

MARKETING PLAN……………………………………………………… 21-25

CONCLUSION……………………………………………………………… 26

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 EXECUTIVE SUMMARY
Herbal cigarettes (also called tobacco-free cigarettes or nicotine-free cigarettes) are
cigarettes that do not contain any tobacco or nicotine. There are several popular brands of
such cigarettes, usually containing a mixture of different herbs and/or other plant
material. Like herbal smokeless tobacco, they are often used as a substitute for standard
tobacco products (primarily cigarettes), and many times as a tobacco cessation aid. They
are also used in acting scenes by non-smokers.
“THE NAME OF OUT PRUCT IS HONEY ROSE”

How does it actually work?

NicoBloc reduces the intake of nicotine and tar by a combination of processes:

· It breaks the physical habit of smoking

· It progressively reduces the number of cigarettes that smokers smoke over a period of
around six weeks

· It helps to gradually reduce smoker’s nicotine intake by simply applying NicoBloc fluid

How to use it?

In the first week when smokers start using NicoBloc, they should use apply one drop of
NicoBloc to the filter of each cigarette they smoke. In week two they should use two
drops of NicoBloc on the filter of each cigarette they smoke. And from week three
onwards, they should apply three drops of NicoBloc to each cigarette they smoke. This
reduces the amount of tar and nicotine up to 99%.

Using NicoBloc, Smokers can also slowly reduce the number of cigarettes they smoke
daily.

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Benefits:

• Smokers can use it with their usual brand of cigarette. It has been developed in
such a way that there are minimal changes to the taste and smoking experience.

• NicoBloc is a natural product; the main ingredients of NicoBloc are completely

natural and consist of water, corn syrup and citric acid.
• NicoBloc is not ingested, it can be used safely by anyone who wants to quit
smoking, and it helps the body takes in decreasing levels of nicotine.
• Smokers should just apply 1, 2 or 3 drops of NicoBloc to cigarette filter as
required. It should not be taken internally.

Honeyrose Lights Cigarettes (Blue):

Honeyrose Lights Cigarettes give a light, mild smoke with a uniquely satisfying flavor. It
is a non-addictive and guaranteed tobacco and nicotine free cigarette with a tar level of
just 3mg; Honeyrose Blue Cigarettes are one of the lightest, smoothest and most
satisfying cigarettes available.

Honeyrose Lights Cigarettes are tobacco free and nicotine free and contain no addictive
ingredients so there is no risk of developing a long-term chemical dependency.

When smokers choose the Honeyrose Herbal Cigarettes, they should try to find the
variety that most closely resembles their tobacco brand. Honeyrose has been making
herbal cigarettes and smoking mixtures for over thirty years. These cigarettes are trusted
method of helping to give up smoking while avoiding the harmful effects of tobacco and
nicotine.

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How do the Honeyrose Lights Cigarettes work?

The Honeyrose Stop Smoking Plan allows a natural progression away from both tobacco
and nicotine. Honeyrose Herbal Cigarettes and Smoking Mixtures provide the support
needed to reduce tobacco intake without removing the physically satisfying process of
selecting, lighting and holding a cigarette, especially during the difficult quitting period

Herbal Cigarettes

NicoBloc is a smoking cessation aid which, when added to the filter of cigarette, blocks up
to 99% of the harmful nicotine and tar Smoker inhale. This
helps to gradually reduce nicotine intake while Smoker give up smoking.

The story of NicoBloc started during the Vietnam War when American soldiers were
looking for something to improve the taste of their free issue cigarettes. They used to add
a drop of glycerin to the filter to remove the bitterness.

This experiment was remembered after the war, and the technique was adapted and tested
with as a way of blocking nicotine and tar in cigarette filters, as a result of this field
research and laboratory testing, NicoBloc was found and developed as an aid to stopping
smoking.

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 INTRODUCTION
In India, current market size of cigarettes is rs 23000 crores. Every year are 9, 00,000
smokers die due to cancer and main reason for death in tobacco. Tobacco contain
nicotine which is harmful for body most of smokers smoke to relax, youth smoke as a
style statement and some smoke because they are addicted and recent. But, this smoking
causes many health hazards.

NEED
Here comes our idea “A cigratte which does not coustitute tobacco instead contaive
various types of herbs.”
It would satisfy the need of smokers without causing dependence up it and less harm to
the body. Herbal cigrettes will allow the consumer to enjoy smoking without hazardous
effect tobacco.

BUSINESS PROFILE
Herbal cigrattes is basically not a Nero concept to the would but its having a great future
opportunity in India. Youth is now prefering flavoured cigarettes. This concept is already
running in USA. But when we talk about India as the market for the herbal cigarette is
being exported as there is a ready-mads market over there.
As in north India there is no as such player dealing in the field of herbal cigrettes. So we
would be having the first-mover advantage.
We will start operating in the major cities of Punjab. Initially we would be supplying
herbal cigarettes through the existing outlet and later on we would be moving towards
having own outlet.

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PRODUCT SPECIFICATIONS

Tobacco increases nicotine in our body which causes but herbal cigarettes is nicotine
free. The ill effects of nicotine are that the person becomes addicted. Companies claim
that they produce harmless cigarettes produced are 60% tobacco free.
But the herbal cigarettes which in 100% tobacco free” Have the ingredients like rose
petals, herbal plan etc.

The ingredients basically used are:

1. Corn silk leaps
2. Mint
3. Lemon gram
4. Turmeric
5. Tender leaf

USB of Herbal cigarettes: Herbal cigarettes are helpful to combat cough and cold in
winters and helps digestions and removal of toxins from chest and lungs

VISION - Our vision is to be the Market leader in terms of market share within 5 years in
herbal cigarettes
MISSION – To become a today’s Fashion style and prevent people from various disease

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 TARGET MARKET
According to the facts and figures per capita consumption of cigarette is 85 in India and
that of world is 845. Our target market would be the middle class community of smokers
in the region of Punjab. We would be targeting those people which are there to give up
smoking but couldn’t do so due to addition and this would be the substitute to the
smokers.

ECONOMIC ASSESSMENT

Initially, we are the team of five member would be investing rs. 5 lakhs each other
comprising of over all capital as rs. 25 lakh considering the overall production cost
advertisement cost, margins etc. we have decided the selling price of the herbal cigarettes
as rs.27-30.

COMPETITION
There are the production houses in Tamilnadu but major player is NIRDOS. Both the
houses are export oriented. Companies are launching flavoured cigarettes but the major
ingredient is still tobacco. So as far as India is concerned we are not having any such
competition. There is no as such direct competition for us in herbal cigarettes but
competition exists in other products such chewing tobacco, bidi etc.

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 SWOT ANALYSIS
STRENTH: As there are lesser restrictions on herbal cigarettes and provisions of
COTPA (2003) are not applicable in the case.

WEAKNESS
As the herbal cigarettes are in the introductory stage in India so there is unawareness
among customers about the product.

OPPORTUNITY
WHO’s framework connection on tobacco control (2003) (FCTC)
India is signatory to this convention and has promised WHO to reduce tobacco
production in India by 50% by 2020. As a result tobacco board is offering each tobacco
grower a sum of rs. 5 lakhs to surrender their licenses. In coming future when the
production of tobacco will decrease herbal cigarettes may act as substitute to the tobacco
products.

THREATS
Since in this sector the initial capital investment is very less. So there are less barriers to a
new extent. So in coming future many competitors may get into this field.

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 INDUSTRY ANALYSIS OF HERBAL CIGRATTES
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a national level. It provides the latest retail sales data, allowing you to identify the sectors
driving growth. It identifies the leading companies, the leading brands and offers strategic
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duty paid retail volume and value sales, illicit trade volume, company and brand shares,
pricing, distribution and production data.

The cigarette industry involves companies that sell and produce tobacco products all
around the world. Tobacco products include cigarette, cigar, pipe, and chewing tobacco.
Tobacco smoking is “the single largest cause of preventable death and disease in our
community.” (Tobacco. 2006) With a society becoming more prosperous, education is
improving and a concern for quality of life is resulting in a strong anti-smoking sentiment
on all levels of society. Therefore the present and future marketing activities of the
tobacco industry are heavily impacted by forces within its micro and macro
environments.

In analyzing the changing marketing environment for the Cigarette industry, we look at
the micro and macro-environments impacting on this industry.
The micro-environment consists of the forces close to the organization that affect the
customers; the organization, suppliers, intermediaries, customers, competitors,
and the public. The macro-environment involves the societal forces that impact on the
micro-environment; demographic, economic, natural, technological, political, and
cultural.

Macro-Environment
Demographic
Smoking rates vary over the different socio-economic levels in society. Education levels
show trends in smoking rates with people having obtained higher education levels being
less likely to smoke than others with a lesser education. Current smoking rates reflect that
smoking is more prevalent in blue collar workers than in white collar. (Tobacco in
Australia: Facts and Issues. 1998.) Our population is becoming more educated and the
rising numbers of educated people pose a threat to the present and future marketing
activities of the tobacco industry.

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ORGANIZATION STRUCTURE
• SALE AND MARKETING : 1 EXECUTIVE FOR JALANDHAR AND 1 FOR
AMRITSAR
• OPERATION MANAGEMENT : 2 PERSON
• OFFICE HANDILING : 1 PERSON
As we are five group members we will control at different geographical areas.

And other total number of employees depends on the requirement. For this do not need so
much skilled labor. Workers who are capable of doing such work are hire and for other
official work skilled employees must be hired.
DESIGNATION LIKE WILL BE AVAILABLE
• Managing Director
• Chairman
• Finance Manager
• Marketing Manager
• Human Resource Management

All these designations are filled by hiring top experienced employees.

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OPERATIONAL PLAN
Following data will throw some light on the daily operation of our business, its location,
equipment, people, processes, and surrounding environment.

Production
How and where our products or services shall be produced?
We shall be producing Herbal Cigarettes at our factory which is situated at main road on
Morni hills which is 45kms from Chandigarh and would provide us an easy access to
Himachal Pradesh.
Our methods of:
• Production techniques and costs –Most of the job shall be done by machines but
much supervision would be required to ensure quality goods and also we would
be starting at a small scale, so very few machines would be required to produce
them and we shall opt for semi automatic machines.

Following is the process to manufacture cigarettes:

1. Silo- In the silo, the ingredient will be processed to insure the fullest flavor of
your cigarette.

2. Another machine will work with the paper. The paper will be fed into
machines on long rolls that will cut off at specific sections.

3. Then it is transferred to a machine that will cut the ingredient and divide it.
The machine will divide the ingredient and roll it into cylindrical shapes. This
system will make two or more cigarettes in which are rolled into the paper and
glued, then cut.

4. The filter is then added and a brown pre printed cork paper is then added to
the white tube which will be done manually.

5. The final process is to flip one of the doubled stick so that it faces the opposite
direction. This ensures that made cigarettes are in proper place for packing.

6. From there, the cigarette will move onto the packaging area. While packaging,
the cigarettes will be each turned opposite from each other and then put into
packs. This will ensure a tight fit into the wrapping.

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 The estimated cost of installing these machines would be around 7.5 Lakhs and
the cost of production per cigarette would be around 90 paisa as our production
would be low due to limited demand and we shall be operating at 50% capacity in
the beginning which we shall increase as the demand increases.

• Quality control- We shall keep a proper check on quality of raw material when it
shall be received and also each batch of our final produce shall be tested in
Cigarette testing station (CTS) before they are sent for further distribution. The
CTS shall test cigarettes for a variety of physical properties including weight,
dilution, circumference, and amount of air drawn through the filter.

• Customer service- Our VP- Marketing shall be personally visiting our

distributors & retailers once in a month and listen to the problems faced if any by
them in selling our product. Any type of feedback from customer shall be
cordially invited and we shall try to satisfy our customer to the fullest extent.

• Inventory control- Since the items is not too costly and its initial demand may
not be too high, so we shall keep a minimum stock of raw materials for 3-4 days
which would be sufficient to produce goods and would try to use Economic Order
Quantity and Just in Time policies to manage our inventory.

Location
What qualities do we need in a location and the type of location we’ll choose?
Physical requirements:
• Amount of space- We do not require to store much raw material as our
ingredients are dried rose petals and Cinnamon grass & Tendu leaves as they are
easily available throughout the year, and since we aim to follow Just in Time
policy so a shed to store raw material would be enough. We shall carry put
operations in a factory of 500 Square Yards as the machinery required is not too
huge in size. We shall be allocating a small space for offices of our CEO & VP’s.

• Type of building- The Building shall be single storied and shall be divided into
various parts- Shed for storing raw material & Two large rooms for different
processes of production. One Room having different cabins for Our CEO & VP’s.

• Power and other utilities- We shall require a commercial electricity connection

of around 20 Kilowatts.

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Construction:
We shall be spending around Rs. 3.5 Lakhs for construction of sheds& single storied
building.

What will be our business hours?

Our normal working hours would be around 10 A.M to 6 P.M for executives and from 9
to 5 P.M. for workers. However, the working hours are subject to minor modifications as
per demand and other conditions.

Legal Environment
• Licensing and bonding requirements

To start business we will have to first register our firm. We will register our firm
with:

Sales Tax Department

Excise Department

We will have to fulfill the provisions required for starting the manufacturing. These
provisions may differ from state to state; even these provisions may also differ within
the state depending upon the characteristics of that particular area. License to
commence the manufacturing will also to be produced from the government of
Himachal Pradesh.

• Special regulations covering our industry or profession: Special regulation and

licensing policy for the cigarette industry will not be applicable to our firm as we
not dealing in tobacco and we need not to fulfill the provisions set for tobacco
products.
• Trademarks, copyrights, or patents (pending, existing, or purchased):

In our study we could not find any kind of existing process or product patented with
regard to herbal cigarettes. But nothing prevents us from file an application to patent
our product and production process. That will save our product of being copied.

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 Of course we will also get trademark for our brand name and logo that is yet to be
decided.

Patent and copyright can be filed online on the website http://www.patentoffice.nic.in/

Personnel
• Number of employees: For sales and marketing purpose we will be having two
sales executives. Since, initially we are targeting only Punjab region, we have
further divide it into two areas. One executive will be responsible for Jalandhar
and Amritsar and another will head the marketing and sales of the company at
Ludhiana and Patiala.

Sales Executive - 1

Jalandhar Amritser

Sales Executive - 2

Ludhiana Patiala

• Type of labor

Making cigarettes does not require much technical skills on the part
of workers. So, semiskilled laborers can be trained to work on machines. Moreover,
more use of machinery makes our production technique capital extensive so we will
not require many workers.

Our study reveals that as initially we are not going for mass production,
we can do well with six workers and one supervisor. One worker on each machine
will be sufficient one at silo machine, one at paper cutting machine, one at folding

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 machine, one at cok tip, one at packing, one for storing. And supervisor will supervise
all the processes and will ensure minimum wastage and minimum idle time.

• Where and how will you find the right employees?

For sales executive we will prefer local energetic and enthusiastic people, who have
knowledge about the domestic market.

We think we will be able to procure workers from the region where our plant is going
to be established. Our plant will be situated at Morni Hills, Himachal Pradesh and raw
material source is also not too far. Skilled or semi-skilled workers can be hired from
the places or villages around for the purpose.

• Pay structure:
Wages (3500*6 + 5000*1) 26000
Sales Executives 16000
Partner's Salaries 75000
Total 1,17,000

• Training methods and requirements:

As we are hiring semi-skilled workers, some sort of training will be essential for all
the workers. We will give them “On The Job Training”. The will be working on
original machines and production of the cigarettes will continue even during training.
Moreover raw material used in the processes is not much expensive. So, some
wastage during training program will not cause much.

Inventory
• What kind of inventory will you keep: raw materials, supplies, finished goods?

We shall keep raw materials (Herbal Plants), our work in progress at different
stages and finally finished Herbal Cigarette as our inventories.

• Average value in stock (i.e., what is our inventory investment)?

Our average investment in inventory shall be Rs. 1.2 Lakhs which shall be
subdivided into Rs.10000-12000 as raw materials & work in progress & Rs.15000
as finished goods.

• Rate of turnover and how this compares to the industry averages?

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 Since there is no local player already in manufacture of Herbal Cigarettes, so a
comparison between industry standards is not quite possible as each brand &
product in industry has its separate standards.

• Lead-time for ordering?

It is estimated that the lead time for ordering the raw material may range from 5-
10 days.

Suppliers
Identify key suppliers:
• Names and addresses-

1. Tendu Leaves:

M.P. State Minor Forest Produce Co-op Fed. Ltd.

Sports Complex
Indira Nikunj, 74 Bungalows
Bhopal - 462 003 (M.P) INDIA
Telephone: 91-755-2555867, 2555869, 2555871, 2554880
Fax : 91-755-2552628
email : mdmfpfed@sancharnet.in

2. Dried Rose Petals:

Green Earth Products Pvt. Ltd.

W-105, khuranas, greater kailash part I
New Delhi - 110048, Delhi, India
Phone: + (91)-(11)-29239095
Mobile: + (91)-9810153563
Email: gep@vsnl.com

• Type and amount of inventory furnished – Dried Leaves & Petals. Our
Average inventory of raw material shall be around Rs.10000-12000.

• Credit and delivery policies- We shall be purchasing goods on credit of 7 days.

However if any supplier allows us attractive discounts, we may make payment
immediately on delivery.

Should you have more than one supplier for critical items (as a backup)?

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Yes, we will have a backup for supplying raw materials in case any of our suppliers fails
to deliver us goods within stipulated time.
Do you expect shortages or short-term delivery problems?
No, we do not expect any type of shortage or short term delivery problem as raw
material is available throughout the year.

Credit Policies
• Do you plan to sell on credit?

No, Basically Cigarette business is 100% Cash & Carry Business and since the
scope of margin is also very less, so we shall also follow Cash & Carry policy.

• Do you really need to sell on credit? Is it customary in our industry and expected
by our clientele?

No, since already this industry is following Cash & Carry policy, so we shall go
by the prevalent rules of industry. However, we shall ensure good margin (around
3-4%) to distributor, whereas other tobacco companies give only 1.5% margins to
distributors.

• If yes, what policies will you have about who gets credit and how much?

Not Applicable

• How will you check the creditworthiness of new applicants?

Not Applicable

• What terms will you offer our customers; that is, how much credit and when is
payment due?

Not Applicable

Managing Our Accounts Payable

We shall be purchasing goods on 7 days credit as our average inventory period for raw
material would be 3-4 days and for finished goods shall be 3 days. However the cigarette
business is wholly cash & carries business, so we think we shall be able to pay our
creditors after realizing the cash from debtors.
Do our proposed vendors offer prompt payment discounts?
If any vendor offers us attractive discounts on cash payment, we may opt for the offer
depending upon the availability of cash with us

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 FINANCIAL PLAN
PROFIT AND LOSS ACCOUNT
ESTIMATED INCOME STATEMENT
(PER MONTH)
Rs. Rs.
Sales (300000*2.50) 750000
less Excise & Other Taxes 150000
600000
COGS
Raw Material 80000
Wages (3500*6 + 5000*1) 26000
Power 20000
Carriage Inwards 6000 132000
Gross Profit 468000
Salaries
Sales Executives 16000
Accountant & Stores Incharge (7000+5000) 12000
Partner's Salaries 75000
Distributors Margin (3% of Sales) 18000
Carriage Outwards 8000
Office Expenses 10000
Distribution Charges 9000
Salesman Commission (1.25%) 7500
Packaging Charges 5000
Telephone Charges 4000
Travelling Expenses 12000
Petrol & Other Charges 3000
Insurance 1500
Depreciation @ 10% Furniture 8200
Depreciation @ 15% Delivery Van 1200
Depreciation @ 15% BUILDING 4375
Postage & Telegram 1000
Advertisement Charges 150000
Miscellaneous Expenses 20000 365775

Net Profit 365775 102225

Total 600000

ANALYSIS OF FINANCIAL PLAN

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We have attached excel sheet with this document. In which 2 years
• Projected balance Sheet
• Profit & Loss account
• Projected Cash Flow Statement
• Break Even Point
1. The Sales has been increased from 750,000Rs to Rs825000 in second year.
2. Gross Profit has also been increased from Rs 468000 to Rs 514800
3. But with the increase in Gross Profit, Expenses has also been increased like..
• Salesman Commission 7500 to 8250
• Travelling Expenses 12000 to 13200
• Petrol & Other 3000 to 3300
• Advertising 150000 to 165000
4. Net Profit has also increased i.e. 365775 Rs to Rs 399597.5, it is only less
increased but it is estimated that it will increased in Future with higher rate of
return.

BALANCE SHEET
5. With the increase in Cash in hand our total asset increased i.e. is Rs 243600.00
6. BREAK EVEN POINT
• First Year = Rs 147257.95
• Second Year = Rs 144132

MARKETING PLAN
Market Definition and Segmentation

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We have broken our markets into groups according to the age.

STP PROFILE
The market Segmentation of our business is quite difficult as we are manufacturing the
products that will be curing the diseases of any age group. But still we will be focusing
on the middle income groups that can not afford the highly expensive prescriptions of the
doctors. We are offering the products that are price friendly and are in the reach of every
one. We will be having the products that are suitable for everyone. Our main objective is
to eliminate the diseases form the root level of an individual. We want every needy one to
be cured at the very its effort of reaching our product service

1. SEGMENTATION

I. GEOGRAPHIC: Punjab & Delhi

II. DEMOGRAPHIC:

• Age 20-50 years

• Gender – Male

• Family Size- Single, Married

• Socio Economic – Upper Middle & Middle Class

2. PSYCHOGRAPHIC

• Lifestyle – Enjoys parties & other such activities

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 • Occasion – Whenever Require

• Benefits – Herbal, hence no damage to the body

3. TARGETING
Target audience – Male youth of urban cities who belong to upper middle & middle class
of society & who enjoys parties & other such activities.

4. POSITIONING

An Herbal Cigarettes prevent from damages like Nicotine & many other

5. PRODUCT LIFE CYCLE

a. DECLINE STAGE

• OBJECTIVE – To retain the product at reduced cost . Price cut & cost cutting in
promotion.

b. MATURITY STAGE

• OBJECTIVE – To sustain market share, sales promotion & use of greater variety
of media.

c. GROWTH STAGE

• OBJECTIVE – To compete by advertising or spending high

d. INTRODUCTION STAGE

• OBJECTIVE – To create awareness & trial promotion

6. PACKAGING
The color of cigarettes will be white & golden coil fpld around it & it present
the freshness in the product.

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 7. MARKETING MIX – PRODUCT STRATEGY

• Product differentiation on the basis of performance quality

• No artificial ingredients

• 100% natural

• Contain no chemical additives or synthetic preservatives

8. PRICING STRATEGY
Product cost for Company is Rs 25 to 30

9. .PROMOTIONAL – IMC APPROACH

• Online Marketing & Direct Marketing

• Public Relation: Press release

• Advertising

• Print ad in newspaper & magazine

• Electronic Ad in Broad Cast Media

• Hoardings

Online Marketing & Direct Marketing: Yahoo has 30 million registered user in
India. Yahoo.Com offer mail shots (digital mailer) @ Rs 2 per mailer for 200000 shots.
EW will target for 200000 shots in first phase of promotion.

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Advertising

 Newspaper/Magazine Advertising

Cost of Newspaper Ad
Size: 10 X 12 cm
Rate: Rs. 250 -1200/ sq.cm depending upon newspaper (local, national)
Frequency: Twice a week on weekends on front page
Type of Newspaper: Regional/National

Cost of Magazine Ad
Size: 10 X 12 cm
Rate: Rs. 450 -600/ sq.cm
Frequency: Fortnightly
Type of Magazine: Fashion Magazines

 Bill Boards
Cost of Billboard
Size: 250 Sq. ft
Skin: Rs. 8750
No. of Billboards: Depends upon Sales Potential of the area.
Cost of TV Ad
Prime Time: 6-11pm
Channels: Neo Sports, M Tv, News channels etc.
Cost in Prime Time: Rs. 150,000-350000/min
Cost in Off-peak time: Rs. 40,000-70,000/min
Duration of TV Ads- 30 Seconds

Sales Promotions
Consumer Oriented
 Buy One 100 pack get 2-3 packs free (Initial two months)

 Get 15 % off on returning the empty gel tube (25 gram)

 Get 20% extra on 100 gram pack

Trade Oriented

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 Free tour to Goa two nights-three days on achieving the quarterly sales target of
Rs.150000/-

 Free gift inside a 50 pack CFC or Buy two CFC’s (100 units) get 5 units free

10. MEDIA MIX

• Print Ads

• Newspaper

• Magazines

• India Today

• Hoardings

THESE ARE THE VARIOUS HERBAL PRODUCTS THAT ARE USED IN HC

CONCLUSION

25
Considering all the facts and figures the idea of herbal cigarettes secure feasible and may
have a good future prospectus and may be scales up as the demand may likely to grow up
the major challenge is to create the awareness in the general public and persuade them to
switch to less harmful substitute i.e. “ herbal cigarettes”.

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