Professional Documents
Culture Documents
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The major players and their products in this category are:
• Good Knight, Jet, Banish, Hit from Godrej Sara Lee Ltd
• Odomos Cream from Balsara Home Products Limited
• Autan Lotion from Lever Johnson Pvt Ltd
• Camlin Limited
• Maxo from Jyothy Laboratories
• Mortein from Reckitt Benckiser India Ltd
• Tortoise from Bombay Chemicals Private Ltd
• Casper from Tainwala Personal Care Products
• All Out from Karamchand Appliances Private Ltd.
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THE EVOLUTION:
In the latter half of the 1990s, the market became much more
competitive, with the entry of GSLL, Reckitt Benckiser and HLL. GSLL
launched an array of brands (all coils) like Jet Fighter (1997),
GoodKnight Jumbo (1999) and GoodKnight Instant one after the other
The company's other brands included Banish (mats), Hit (aerosols), Hit
Lines (chalks), Mosfree (lotion) and Hexit (spray).while Reckitt also
launched its range of mats and coils.
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WHY WE CHOSE TO LAUNCH A VAPORIZER?
1) Market Growing:
The market for vaporizers has grown from 5% in 1999 to 20% in 2009.
It is expected to grow even further since vaporizers are becoming
economical and people are realizing the disadvantages of using coils
and mats.
2) Safer And Convenient: Vaporizers are safer than coils since they
just have to be switched on. They are far more convenient as well.
Many people complain of breathing problems with coils which is
eliminated through vaporizers.
FUTURE
According to industry reports, the Indian mosquito repellant market
is expected to grow rapidly. Analysts said that with improvement in
literacy and health consciousness in rural areas, the use of
mosquito repellants is expected to increase substantially in these
areas. As the per capita usage of repellants is very low in the
country, there is considerable scope for the market to expand.
ABOUT FIGHTER
Our product is a mosquito repellent vaporizer machine and its refill.
The machine has an added feature of being operated with AA battery.
This battery if used everyday will work for about 45 days. So it can be
used even without electricity and can be used outdoors as well; for
example tents, cars, etc. The refill will be available in 25ml pack which
will last 30 nights, 35ml which will last about 45 nights and 45ml
lasting 60 nights subject it is used for 8 hours every night. The liquid is
light green in color. The vaporizer liquid is herbal. It is very economical.
Some of the benefits of our product are:
1) Effective evacuation of mosquitoes
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2) No irritation of eyes
3) No hoarseness of throat,
4) No headaches and
5) No allergies.
Due to complex structure of herbal extracts in our vaporizer liquid,
mosquitoes will not develop immunity/resistance towards it like
synthetic toxicants.
USP: The USP of our product is that it is the most effective herbal
vaporizer which has an added feature of being operated with a battery.
MARKETING MIX
1) PRODUCT:
SEGMENTATION
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Fighter has also segmented on the basis of occasion where it can used
on occasions like camps, outings provided used in a closed area.
TARGETING
Our target market is SEC A, SEC B and SEC C.
Income: Rs. 60,000+ p.a.
POSITIONING STATEMENT
Fighter is primarily positioned as “A battery operated herbal vaporizer
which is most effective to repel mosquitoes, absolutely safe,
convenient and economical.”
PRODUCT DIFFERENTIATION
Our product is one of its kinds. Most of the other vaporizers are
chemical based, whereas we are the first movers to have a complete
herbal vaporizer. We have an added feature of a battery as well. Most
of the other vaporizers become ineffective if there are power cuts but
FIGHTER overcomes this problem.
2) PRICE
The price of our combi-pack is Rs. 67. The price of the 25ml refill is
Rs.32, 35ml refill is Rs.42 and 45ml refill is Rs.50.
Our pricing strategy is Penetration Pricing because we want to sell
high volumes which will result in high long-run profits. The price of our
product is low as compared to our competitors mainly because we are
using herbal products and thereby our manufacturing costs are low.
We want to penetrate into the market and want to be known as the
product which provides value for money to the customers.
3) PLACE
We have a distribution system which includes
MANUFACTURER- DISTRIBUTOR- STOCKIST-WHOLESALER-RETAILER
The margins are as follows:
Distributor 2%
Stockist 3%
Wholesaler 5%
Retailer 12%
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4) PROMOTION
The means that we will use for promoting our product are as follows:
1) Print Ads
2) Hoardings
3) TV Commercial
4) Press Conference
We have two print ads for promoting our product and creating
awareness among the public. These will be published in the leading
newspapers. The hoarding will be will be shown in all the major cities.
We have one TV commercial which will be aired for about six months.
The message appeal of the ad is that of benefits and uniqueness of our
product. On the day of the launch of the product we will call upon a
press conference for creating awareness about our product through
the media. The following are our print ads and storyboard:
This is our first print ad wherein we want to show that our product is a
herbal product.
Storyboard
Frame1:
Sadhu is trying to meditate in a hunt in a jungle.
Frame 2:
The mosquito are disturbing him and destroying his concentration. He
says “ Hey Hanuman! Ye macchar Mera dhyan Bhang Kar Rahe Hain!”
Frame 3:
He says “Inse Chutkara Kaise Payoon?”
He wants to get rid of them as soon as possible.
Frame 4:
He says “Yahaan toh bijlee bhi nahin hain…”
As he is in a jungle, then is no electricity and he has no other option as
he is a Sadhu and doesn’t use chemicals that are harmful to the
environment either.
Frame 5:
He uses our product “FIGHTER” AS IT IS MOBILE AND HERBAL. He gets
rid of the mosquitoes. He is extremely overjoyed and in his excitement
he says “TUSSI GREAT HO FIGHTER”
Frame 6:
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He continues meditation peacefully…! Our product is shown on the
screen.
SALES PROMOTION
The three vehicles which we have used for promoting our sales are:
1) DISCOUNT SALES
This is to generate trials. We will have stalls outside about 150 retail
stores including departmental stores, supermarkets in major cities like
Mumbai, Pune, Ahmedabad, Cochin, Panaji, Surat, Vadodra and
Bangalore. The customer buying the product for first time will get a
discount offer. The normal price of our product (machine +refill) is
Rs.67 but the product will be given to him at a price of Rs.60
2) COUPONS
Along with getting our product at a discounted price, the customer also
gets coupons. These coupons will carry a discount scheme where the
customer gets a refill of 45ml (which costs Rs.50) at price of 35ml
worth Rs.42.
3) MULTIPACKS
A multipack would contain 2 refill bottles of 45 ml and instead of
Rs.100 (price of both) it will actually cost Rs.92.
5) Financial Analysis:
We have estimated our costs, project sales and profits for the future in
order to achieve the objective of our company. This is further
understood in the cost sheet and break-even analysis as follows:
COST SHEET
Initial cost of plant: Rs. 20000000/-
1st Year
(all figures in rupees)
Direct Material 17600000
Direct Labor 3200000
Prime Cost 20800000
Depreciation 2000000
Administration Cost 7800000
Cost of Production 30600000
Advertisement & PR 16900000
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Selling & Distribution 15600000
Cost of Sales 63100000
2nd Year
(all figures in rupees)
Direct Material 19300000
Direct Labor 3500000
Prime Cost 22800000
Depreciation 2000000
Administration Cost 8600000
Cost of Production 33400000
Advertisement & PR 17200000
Selling & Distribution 17200000
Cost of Sales 67800000
3rd Year
(all figures in rupees)
Direct Material 22200000
Direct Labor 4100000
Prime Cost 26300000
Depreciation 2000000
Administration Cost 9900000
Cost of Production 38200000
Advertisement & PR 15600000
Selling & Distribution 19800000
Cost of Sales 73600000
Sales Estimation:-
Total Population of target market:- 12 crores
Assuming only 4% of population approaches us for our product:- 48
lakhs
Assuming each family to be of 4 members and some families may buy
one or more units of our product and some may not buy, hence
number of families who approach us for the product:- 12 lakhs
Assuming 40% of families approach us for our refill only and not for
machines, then number of machines sold would be 5 lakhs approx. and
then some of these families may again buy our products and some
may not and also we can get new customers.
Next, assuming major chunk of population opts for 45ml refill then
estimated sale of refills:-
45ml refills:- 360000
35ml refills:- 240000
25 ml refills:- 300000
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Therefore, sale of 1st year:-
Revenue Estimation:-
1st Year:-
Estimated Sales: 67680000
Profit (7%): 4580000
2nd Year:-
Estimated Sales: 74448000
(sales increase by 10% as compared to last year)
Profit (9%) : 6648000
(profit increases by reducing cost on advertisement)
3rd Year:-
Estimated Sales: 85615200
(sales increase by 15% as compared to last year)
Profit (14%) : 12015200
(profit increases by reducing cost on advertisement)
6) PRODUCT DEVELOPMENT:
In order to develop the concept into a physical product and to ensure
that the product idea could be turned into a profitable product we
decide to first produce 2000 units initially of which somewhere around
1500 units will be given to our target customers from all western
states and remaining units will be given to our employees and their
feedback will be taken.
7) COMMERCIALIZATION:
We have decided to launch our product in first week of May and more
awareness about the product will be created in the month of May to
induce the customers to buy our product. the sole reason to launch the
product in month of May is that the sales of mosquito repellents rise
during monsoon.
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BRANDING
LOGO
Our brand logo is a leaf. The leaf portrays the fact that our vaporizer is
herbal. The leaf has the strength to drive away the mosquitoes and
thereby protect you.
BRAND ESSENCE
Core attribute-it is a vaporizer.
Extended attribute-it is a herbal, mobile vaporizer and is effective.
BRAND IDENTITY
Fighter is basically an effective herbal vaporizer. It has an added
feature of being operated with a battery. It aims to identify itself as a
unique product considering it is one of its kind. It will protect your
entire family from mosquitoes.
BRANDING STRATEGY
The branding strategy that our company is following is that of product
branding as the company name is not associated with our product
‘Fighter’. It has an independent identity.
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Price: Being in the introduction stage, our price will be comparatively
lower since we want the upcoming people to use our product. We
would adopt penetration pricing in order to attract consumers.
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SWOT ANALYSIS
STRENGTHS:
• A herbal product
It is strength of our company as we have the first mover
advantage of an herbal vaporizer and also because people
are shifting their loyalties to herbal products as they have
realized the advantages of using herbal products.
• Innovative- Battery operated
The extra feature of our product is that it can be operated
with battery, making it mobile, which is a strength as it
provides convenience to customers.
• Economical
The price of our product is lower and the quality of our
product is comparatively better than those of competitors.
WEAKNESS:
• It can turn out to be expensive if the vaporizer is extensively
used on battery.
OPPORTUNITY:
• Market is growing at the rate of 15%
As the market is growing at a fairly good rate we have a
great opportunity to capture the market share.
• First Mover advantage-First battery operated herbal vaporizer
We have the first mover advantage over being the first
herbal vaporizer in the industry. Being battery operated
gives us the advantage to attract different customers.
THREATS :
• Supply of raw materials
The raw materials used by us may not be available at all
times keeping in mind the natural calamity that may occur.
• Competition from Existing brands having a large market share
• Increase in competition because of upcoming segments such as
personal sprays and gels.
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FUTURE PLANS
After concurring the western belt and Gujarat we would shift towards
the south eastern belt then towards central India and consequently
towards eastern India and finally towards north. Eventually our product
would be available nation wide. We also plan to enter the rural market.
We also plan to diversify into horizontal integration of mosquito
repellent sprays and creams.
Company plans to export its product to countries like Afghanistan,
Bangladesh, etc.
Last but not the least company would like to make its product enter
into the unaided segment i.e., at top of the mind.
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