Professional Documents
Culture Documents
Table of Contents
Sections Descriptions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Executive Summary Situation Analysis Market Opportunity and Issue Objectives Marketing Strategy Target Markets Positioning Marketing Mix Review and Control Marketing Organization Contingency Plan SWOT Analysis
After washing occurs, the unique dye in our soap remains on the hands and fades to the skin's natural color in under six minutes. This would allow parents to conclusively verify at a glance whether hand washing has taken place. No other product on the market offers such a high level of assurance of sanitation compliance. The product is safe and meets all current FDA regulatory requirements for soap. GME will initially tie up with large retail chains as a private-brand supplier for them. However, it plans to enter the domestic market, and subsequently the international market with its own brand once it has stabilized its procurement base, production process and quality of products, and generated enough financial resources. GME aspires to be a leading soap manufacturing company within India in the next 10 years.
Company: GM Enterprises was founded in Chennai and created as a Proprietorship Company. The company will initially be based out of a residential apartment in Chennai to run operations. In Year 2, we will move to a rented office. Total funding required to get the business started is estimated at Rs.5 million. GM Enterprises boasts a strong focus group and experienced board of advisors. The Initial plant capacity is for processing 50 tons of soap per month, will be used to test, patent, approve, produce, and market, as well as provide working capital for the first year. However, the capacity utilization is expected to be 70%, 80% & 100% in the first, second and third year respectively. Context: The annual production of soaps in India is estimated to be about 10 million tons. Due to rapid growth in organized retail and promotion of Indian Soaps for export, production is expected to grow at the rate of about 25% per year. The demand in the export market and organized attempts at brand building is also expected to help in obtaining better prices.
Section 4: Objectives
Develop a complete prototype, which meets regulatory standards by the end of Year 1. Achieve an internal rate of return of about 20% Achieve an average growth in sales of about 25% per year. To receive 95 percent positive customer feedback by the end of year 2. Achieve sales of 280, 360 and 450 tons in the first, second and third year, respectively. Sales Forecast Year 2011 2012 2013 Sales (Tons) 280 360 450 Rupees (Millions) 140 180 270
Assumptions:
The plant will run for 10 months in the first year at 70% of the capacity, for 11 months in the second year at 80% of the capacity and for 12 months in the third year at 100% of the capacity. The realized prices will be Rs.50,000/ton for the first two years, and Rs.60,000/ton for the third year. Achieve break-even sales of 130 tons in the first four months of operation
Rs. 50,000 Variable Cost/ton Rs. 35,000 Contribution/ton Rs. 15,000 Fixed Cost Rs. 2 million Break-even volume = Rs.2 millions / Rs. 15,000 = 133 ton Break-even sales would be at about 33% of the capacity
Our Mission
Our mission is to create value for customers by continually improving health and reducing preventable illnesses through the use of our soap.
Section 7: Positioning
GME will position itself as a value-for-money brand, one that is reliable and trustworthy. Keys to Success A first-mover branding campaign to build awareness of products as the standard for ensuring hand-washing compliance. Patent protection to defend our time-sensitive dye and product concept from competitors. Complementary relationships with organizations interested in increasing hand washing compliance.
Price: With all other points in place, price is the last item that needs to be established. It has become apparent, within our research, that the following price levels may be used for each product type: Soap in Jar: Soap in plastic bags: Soap in wrappers: Rs.50/ kg Rs.30/ kg Rs.40/ kg
These prices are based upon a combination of secondary research, cost estimates, and focus group information. A discount of 10% will be offered on the invoice price for volume exceeding 10tons/month. The distributor will decide the maximum retail price to be printed on the packs. Place: GME will need to be determined on the preference of the target market. When conducting the focus group on soap numerous ideas were introduced. The most important goal that was established when determining a place and time to distribute the product is making the product easily obtainable
Numerous locations of sale were indicated by the focus group, the focus group suggested that the product should be available any times of the year. Selecting the correct time is critical to ensure the popularity and sales of this product. The focus group assisted the marketing team in concluding that careful consideration be taken when choosing the time and place to market soap to receive the greatest results. Initially, GME will supply to markets directly. In the second year of operation, the product will be launched under the GM Enterprises brand, in a few major towns of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh at select outlets through wholesale channels. Promotion: The promotion of a product is strongly tied to the place, price, and packaging. The basic promotional route will be point-of-purchase material, attractive danglers placed near check-out-counters, and sample trial packs of 50 g each. Also, we will develop an awareness campaign to promote our product through several avenues. We will also attempt to capitalize on the novelty of the solutions provided by our product by actively seeking local news and media coverage to help spread awareness.
Research Further research to finally arrive at a working prototype will be outsourced to a chemist with extensive experience working with dyes. After a working prototype is developed it will be pushed through the appropriate regulatory channels. Funding for research for the first product (CHILDassure) will be provided for in the initial startup capital outlined in the start up table and summary. We will use our success in the day care market to propel and fund in additional research and development on an antibacterial version of our soap for use in restaurants (FOODassure) and hospitals (HEALTHassure). Market Initial target markets include all professional day care facilities with capacity for 20 or more children. Projections related to consumer acceptance were estimated using market surveys.
o o o o
y y y y y
OPPORTUNITY/RECOMMENDATION :Target male customers y Maintain better standards of quality y Unified advertising throughout the globe y Continuous innovation THREATS :Risk of being a brand for fat girls Involved marketing risk Copy by the competitors Undermining the aspiration of consumers Sustainability of campaign in long run
y y y y y
Thank You
Any queries please..