Herbal Cigarette: Group No 9

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The key takeaways are exploring ways to help smokers quit by providing herbal cigarettes as an alternative to regular cigarettes containing nicotine and tobacco. Various solutions like herbal cigarettes, flavored hookahs etc. are being proposed. A lean canvas business model is outlined detailing costs, revenues, customer segments etc.

The problem being addressed is how to convince smokers to become more health conscious and help them quit smoking regular cigarettes containing nicotine and tobacco.

Solutions being proposed include herbal cigarettes made of herbal substances without any harmful components, flavored hookahs as alternatives, and using marketing strategies to promote quitting.

HERBAL CIGARETTE

GROUP NO 9
DEFINE PROBLEM

How to convince them to become health


cautious and help them to quit smoking?
Alternative solution
Cipla FLAVOURED HOOKAH HERBAL CIGARETTE

k.a. hamied LOCAL MANUFACTURER Group no. 9

Debts and equity

Nicotex HOOKAH HERBAL CIGARETTE

Who quit smoking FLAVOURS QUIT SMOKING

STRESS BUSTER LOOKS COOL


smokers smokers SMOKERS

659 Rs per pack(10) 200 TO 250 400 RS PER PACK (10)

High distribution
HELPS QUITTING
Helps quitting
Addictive/bad taste
4 /5 (global)

Quit smoking No nicotine/no tobacco


Value proposition
Herbal cigarette

This is the herbal cigarette which is made up of


totally with the herbal substances
That not contains any type of harmful substances
OPPORTUNITY

Population
TAM
SOM

SOM
Total population 136.64 crores (2019)        
  % population who smoking population % of who quit  
under 15 26.60% 36.346          
15-29 25.90% 35.390 7.90% 2.79579104 66.70% 1.864793  
30-44 21.80% 29.788 16% 4.7660032 59.80% 2.85007  
45-59 15.70% 21.452 18.40% 3.94725632 49.60% 1.957839  
60-74 7.90% 10.795 17.50% 1.889048 1.144705  
71-84 1.80% 2.460 19.90% 0.48944448 47.20%    
above 84 0.30% 0.410 11.40% 0.04673088    
          total 7.817407  
               
24-april-2021
Lean Canvas Herbal cigarette

Problem Solution Unique Value Unfair Advantage Customer


Proposition • no unfair Segments
Addiction of smoking Providing cigarette with • Nicotine free advantage • Smokers who
no addiction • Tobacco free wants to quit
(placebo effect) • Unique flavors

Key Metrics Channels


• High marketing • Ecommerce sites
• Distribution • paan shops
• Social media
channel
advertising

Cost Structure Revenue Streams


Raw material
Manufacturing cost Product sale
Distribution cost
Marketing cost
Packaging cost
Fixed cost

PRODUCT MARKET
Break even point
Customers No. of
fixed cost monthly         Revenues (for 30 days)     (per day) days  

rent 15000   Number of customers 15000   500 30  

labours 80000 8000 per labor   Units per purchased          


advertising 100000   Price per unit (INR) 400 box      
distribution cost 12000   Purchase frequency 2 days      
other cost 10000    
total 217000            
        revenue per month 3000000    

variable cost rs unit cost contribution margin 2617500    


raw material   break even 12.06221 days  
paper 1 12.5 0.08      

herbal green leaves 2 0.02 100 rs/kg        

additional flavors 1.6 0.001 1600 kg  

packaging material 5 5   
total 4.6   per cigarette  
  51 per box    
                       

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