Matthew waning

Matthew Waning 10/21/12 Intro to Marketing Milestone 4: Final Paper NicoDerm CQ, produced by GlaxoSmithKline, helps people quit smoking. There are two forms of this smoking aid; a gum and a patch that is applied directly to the skin. This feeds the nicotine to the consumer, thus nullifying the need for cigarettes. There are 45. 3 million smokers in the United States of America, 70% of whom tried to quit smoking in 2011. (1) Tobacco kills 400, 000 people annually. That totals more deaths than AIDS, car accidents, murders, suicides, and alcohol combined. (2) With these new discoveries coming out about the hazards of smoking, this product will help the victims of the addiction and hopefully let them finally swear off cigarettes once and for all. The average consumer spends an average of $2, 500 a year on tobacco. (3) The tobacco distributor, Phillip Morris, made 7. 2 million dollars alone on cigarette sales. (4) What Nicoderm CQ is offering is a simple way to help people quit this dangerous habit. There is a three step process involved, all at a very reasonable price. In today’s economy, cigarette prices are rising as fast as the unemployment rate. This product is an investment that will, eventually, put that $2, 500 back into their pockets. Cigarette companies use visual stimulus to influence the younger populace into thinking smoking is the cool thing to do. Characters like “ Joe Camel” and the “ Marlboro Man” were highly appealing to the younger generation. “ Before the birth of Joe Camel in 1988, the federal government reports, an estimated 3% of teen-age smokers and 4% of adult smokers picked Camel cigarettes as their brand of choice. Five years later, the percentage of adult smokers favoring Camels remained the same, but among smokers ages 12 to 18, Camel’s market share had more than tripled to 13%. ” (5) These characters gave the idea that smoking cigarettes will lead anyone who smokes to a high class status. Unfortunately, this isn’t the case. There are other smoking aids out there. For example, electronic cigarettes (also known as e-cigarettes,) are one of the biggest competitors. These feed the nicotine to the consumer without the usual hazards that actual cigarettes have. Nicoderm CQ has a huge advantage over e-cigarettes. In order to use e-cigarettes, the user would have to make the same motions as a regular cigarette by bringing the hand to the mouth, inhaling, and exhaling. Also, the electronic cigarette is not FDA approved. The FDA announced that a laboratory analysis of electronic cigarette samples has found that they contain carcinogens and toxic chemicals such as diethylene glycol; an ingredient used in antifreeze. (6) NicoDerm CQ was approved by the FDA in 1991, and touted as the original ” nicotine transdermal system.” (7) These aids never truly break the habit, but instead, enforce the nicotine addiction by providing a ‘ healthier’ way to get nicotine into smokers systems. The company that produces NicoDerm CQ is GlaxoSmithKline Pharmaceuticals. The company made 42. 56 billion dollars last year. (8) 52% (23, 556, 000) of smokers last year tried to quit smoking. With the three-step program that is set at $28 per step, the profit could be enormous. If those 23, 556, 000 smokers use Nicoderm CQ once, their potential profit is $659, 568, 000. If 52% decide to follow through with all three steps, the potential profit is $1, 978, 704, 000. If all 70% decide to, that makes them $887, 880, 000. If all 70% decide to use all three steps, this could net GlaxoSmithKline $2, 663, 640, 000. This is, of course, hypothetical, but the potential and the numbers don’t lie. Based on these facts, it is safe to assume that the following are the strengths, weaknesses, opportunities, and threats directly pertaining to NicoDerm CQ. With a strong understanding of each, NicoDerm CQ can easily rise to be the number one smoking aid in the market. StrengthsNicoDerm CQ is a well-known smoking aid. First smoking aid to be FDA approved. | Opportunities70% of American Smokers want to quit smoking. 52% tried in 2011. | WeaknessesThree-step program involved may lose the customer’s loyalty to the brand. | ThreatsElectronic cigarette is inexpensive. The side effects of using NicoDerm CQ. | Nicoderm CQ is one of the best brand names on the shelves. This product is one of the top smoking aids that there are available to purchase. With 70% of the American population willing to quit, and 52% trying, the market for this product is enormous. One of the major problems that NicoDerm CQ must overcome is the electronic cigarette. The electronic cigarette is inexpensive and comes natural to the consumer. Another obstacle that Nicoderm CQ faces is the three-step program that is involved by using the product. The customer must commit to the use of the product in order for it to be effective. If the consumer gives up, that is a loss in the profit margin. One last issue that is evident would be side effects. Abnormal dreams; headache; mild dizziness; mild redness, itching, or burning at the application site; nervousness; sweating; trouble sleeping; vivid dreams (9) are side effects that some users have had. With all this in mind, NicoDerm CQ does state what side effects may happen during the treatment, but this product is a safe, effective way to quit smoking. The person buying this product will have made a step in the right direction. Quitting smoking is a healthy, smart choice, and if the consumer completes the three-step program, he/she should not have the need to smoke again. The electronic cigarette seems like the way out, but it doesn’t help quit the motions involved. A person using an electronic cigarette can just as easily pick up a real one. The target demographic is universal. Anyone that can smoke cigarettes can easily use NicoDerm CQ. The consumer can wear it or chew it. The aid has improved its overall design as well. With new time release patches, the consumer gets nicotine gradually, rather than all at once. These design changes help increase the products ability to give the consumer what they are looking for, success. In conclusion, NicoDerm CQ is one of the top smoking aids in the country, matched by its fellow product, Nicorette (also produced by GlaxoSmithKline.) With its large amount of superiorities in comparison with its major competitors, NicoDerm CQ is already the clear choice for the massive consumer base that is looking, sometimes desperately, to leave smoking behind them once and for all. References 1. http://www. cdc. gov/tobacco/data_statistics/facts_sheets/fast_facts/ 2. http://www. tobaccofreekids. org/facts_issues/toll_us/ 3. http://wiki. answers. com/q/how_much_does_a_smoker_spend_on_cigarettes_each_year 4. www. cnnmoney. com 5. http://articles. latimes. com/1995-08-21/news/mn-37410_1_year-joe-camel 6. http://www. fda. gov/newsevents/newsroom/pressannouncements/ucm173222. htm 7. http://www. fda. gov/forconsumers/consumerupdates/ucm198176. 8.