PORTABLE GRASS CUTTER (PGC)

Portable Grass
CUTTER (PGC)
Group F2

PORTABLE GRASS CUTTER (PGC)

Executive Summary
PGC:
A portable grass cutter, popularly known as string trimmer, is used as a device primarily used to
trim grass and sometimes to trim other shrubs, weed and other wild herbage. PGCs as a product
may have a lot of variations in features like different handles styles and length, blades and other
attachments along with various ergonomic features .However, our product is portable which can
be carried easily by a single person. This product has had a strong demand in the horticulture
Industry for a long time. There have been articles in various magazines mentioning the need of
such a device among owners of lawns for homes as well as hospitality industry. This product can
benefit many home as well as businesses, who cant afford costly substitutes available in the
market, this product is mandatory for lawn owners who have to maintain their swiftly growing
grass. This products usage can be explored in other industries as well as horticulture industry
and other businesses mentioned above. An effective marketing strategy is required to
communicate about this product in the Goa region. Sales strategy to reach out to these businesses
all across the state, promotional campaign to make them aware of the product and its benefits
and an efficient distribution network for a cost effective solution, are required for the lawn
owners of the region.

PORTABLE GRASS CUTTER (PGC)

Contents
1.

2.

3.

Market Analysis.................................................................................................... 1
1.1

Current Situation............................................................................................ 1

1.2

Goal for the Year 2015................................................................................... 1

1.3

Present Competition...................................................................................... 1

1.4

Expected Competition....................................................................................1

1.5

Marketing Objective....................................................................................... 1

1.6

Market Potential of the Product......................................................................1

Product: ANPEGG Portable Grass Cutter...............................................................1

2.1

Key Product Features..................................................................................... 1

2.2

Need/ Product................................................................................................ 1

2.3

Value Proposition:.......................................................................................... 1

2.4

Perception Map Analysis:...............................................................................1

Market Segmentation........................................................................................... 1
3.1

4.

5.

6.

7.

Consumer Behaviour:..................................................................................... 1

Price decisions...................................................................................................... 1
4.1

Selecting the pricing objective.......................................................................1

4.2

Estimating cost.............................................................................................. 1

4.3

Analysing competitors prices........................................................................1

4.4

Sales Forecast................................................................................................ 1

DISTRIBUTION CHANNEL...................................................................................... 1
5.1

Channel Objective.......................................................................................... 1

5.2

Channel Levels:.............................................................................................. 1

5.3

Channel Types................................................................................................ 1

5.4

Commissions and Margins:............................................................................ 1

Promotion decision............................................................................................... 1
6.1

Promotion Objective....................................................................................... 1

6.2

Promotion Mix:............................................................................................... 1

6.3

Budget Allocation........................................................................................... 1

Contingency Plans................................................................................................ 1

PORTABLE GRASS CUTTER (PGC)

1. Market Analysis
1.1 Current Situation
Goa has emerged as India's premier and most expansive market for the Hospitality segment.
Goa is India's richest state, with a GDP per capita that is two and a half times that of the country
as a whole. The tourism related hospitality industry in Goa is Rs. 5000 crores and with a 10 %
growth rate. The Tourism Master Plan estimates an additional bed requirement of 2914 in the
Star category and 4186 in the non-Star categories. The total no of star category hotels are 63 and
total no of hotels are 2500.Hospitality industry is the major client of majority of grass cutter
manufactures in Goa. India imported PGC worth USD 2,219 with total quantity of 323. China is
the largest supplier of GGC accounting for imports worth USD 1,929 followed by Spain which
exported PGC worth USD 290.Cochin Sea accounted for 85.9% of imports followed by Chennai
Sea and Nhava Sheva Sea which account for 13.1% and 1% of imports respectively.

1.2 Goal for the Year 2015

The combination of a unique, cost-effective design that will help us attain 10% market share in
the first year.

1.3 Present Competition

There are 4 major competitors in this market Bosch Honda Husqvarna and Hot Frog while there
are numerous others but are quite latent. With Honda and Bosch holding 53 percent of the market
share. Honda and Bosch have strong manufacturing and distribution skills, while Husqvarna and
Hot Frog have less extensive distribution networks but strong name recognition in the category.

1.4 Expected Competition

With the grass cutter industry growing with presence of many manufacturing agencies present in
the 16 SEZ of the state the expected competition will be widespread with new entrants as shown
by Hot Frog and other locally manufactured products apart from the well placed Bosch and
Honda.

1.5 Marketing Objective

To be well known in the top 5 brands in grass cutter market by the end of 2015 then build and
sustain the growth from there on.

1.6 Market Potential of the Product

The product has immense potential in the grass cutter market as Goa is filled with stadia function
venues and about 2700 hotels which have lawns apart from growing gardening households
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PORTABLE GRASS CUTTER (PGC)

across the state. With 3 national stadiums and many resorts coming up as the number of tourists
growing each year the scope of the product is vast due to the growth of Hospitality industry. This
has also led to increase in lawn services companies setting up offices around the state.

Current Market Share

SM Nursery; 20%
Others; 17%
Welcome; 13%
East West; 25%
Canara; 15%
10%

2. Product: ANPEGG Portable Grass Cutter

2.1 Key Product Features
1.
2.
3.
4.
5.
6.
7.
8.
9.

Powerful and reliable 550 W motor

Easy, ergonomic handling due to perfectly balanced design
Height-adjustable telescopic handle (85125 cm long) for comfortable trimming
90 rotating cutter head for effortless trimming and edging
Angle adjustment on trimmer shaft for easy trimming under bushes and benches
Additional spool holder under the handle for extra-strong line
Adjustable auxiliary handle for additional convenience
Plant protector for maintaining safe distance from walls and fences, and protecting plants
Detachable wheels help to maneuver the trimmer
Technical Specifications:

Motor Capacity

550 W
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PORTABLE GRASS CUTTER (PGC)

Cutting circle diameter

Height adjustment
Pro-Tap Spool
Weight
Cutting system
Extra-strong line

35 cm
85 125
cm
1.6 mm x
4m
3.0 K g
Extrastrong line
6 x 2.4
mm

2.2 Need/ Product

Many Lawn Care/Landscaping companies are on the rise in Goa due to the demand from
hospitality and residential communities. Large number of Hotels have lawns and few even have
small golf courses. Large number of Hotels want a nice looking yard but do not want the hard
work that come along with it have an unsatisfied want. This has led to many companies setting
up their sales offices in Goa to tap into the market of industrial goods. Due to the low availability
and high prices are charged by the few vendors available .Also the time of delivery is high as
demand is low and is mostly not stocked by dealers. This has led to e-retailers to supply these
equipments through websites like Flipkart, E-bay, Indiamart.com, and manufactures company
website like Bosch etc.

2.3 Value Proposition:

ANPEGG is a manufacturing outfit which provides Solutions to its customers on Value
Proposition rather than selling on specifications. With a new product on landscape maintenance
products on offer we provide reliable and efficient solutions to our customers. ANPEGG is being
positioned to supply throughout Goa; high quality portable grass cutter.
We are a customer centric syndicate with its main value proposition being customer satisfaction
for both external and internal customers. With prime focus on customer satisfaction; both internal
as well as external, ANPEGG is poised to carve a special place in portable grass cutter on the
basis of its zero maintenance high quality and reliable products

PORTABLE GRASS CUTTER (PGC)

2.4 Perception Map Analysis:

To find out the perception amongst our customers about the current perception about the market
products of different companies. We conducted a survey by asking leading lawn services
companies, wholesale dealers, High Income residential owners and hotel owners about the
products in quality, reliability and price of the products. The price sensitivity of the customers
was also recorded and we found that customers are not price sensitive as its a one-time purchase
and maintenance is a primary concern. So after plotting the perception map of the competitors
we found it apt to place our product as highly reliable (zero maintenance) and high priced filling
the vacuum in the perception Map.

The positioning of this product will be higher than any other lawn mowers because it is portable
and able to cut the grass in a professional way that will look like someone hired has cut the grass
in the yard. It will be on the pricier side but it is worth it because it will be better than always
having to pay someone else to do it or do the yard work themselves. I will also be available at the
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PORTABLE GRASS CUTTER (PGC)

major industrial equipment stores in Goa .The two main target market that are Hospitality
Industry and Lawn service companies. These segment has professional cutting as its reliable and
Price which are the main criteria .These customers will need disposable income because the
product is positioned higher and has a higher price than other lawn mowers in the market.

3. Market Segmentation
Market segmentation is the act of subdividing the market into a group or groups of people who
have similar needs within the group. We have divided the market into hospitality sector, lawn
Services Company and high income residential owners. Through the segmentation of the
lawnmower market, it will be possible to achieve a greater proximity to the final customer; create
advertising media that target the identified segments; facilitate the positioning of the product; and
obtain the return on investment by the company. The developments and technological diversity
provided by all the competitors operating in the sector has shown that this market is very
competitive nowadays. Thus, it is imperative that a strategic shift is implemented, which is more
focused on meeting the needs of the customer.
There are several types of lawnmowers available on the market: manual, battery - powered or gas
powered models, are some of the options. There are ways to segment the lawnmower market:
Customer characteristics: Price, Reliability, efficiency, manual effort, uniformity of grass cut etc.

3.1 Consumer Behaviour:

Consumers are of different types. The customers are not price sensitive as its a one-time
purchase and maintenance is a primary concern. The Male member of the family is the target
person who is the key decision maker for products in this category. While purchasing a grass
cutter, consumers may face a high involvement decision because a Grass Cutter is rather costly.
However, the Grass Cutter brand names will not be of much concern to consumers. Buyers will
still look around and compare different lawn mowers based on their extrinsic features, and
purchases are normally made within a shorter period of time as opposed to complex buying
behavior. After making a purchase, the consumer may encounter post purchase dissonance, also
known as after-sales discomfort, resulting from discrepancies between the consumer's decision
and the consumer's prior evaluation .For instance, the buyer may discover undesirable traits or
hear negative comments about the Grass Cutter and thus regret his or her purchase. To minimize

PORTABLE GRASS CUTTER (PGC)

such dissonance, we will introduce certain features to satisfy customers, such as warranties and
after-sales services.

4. Price decisions
4.1

Selecting the pricing objective

Product-Quality leader
Our company aims to be a product quality leader in the market. Our brand strive to be
affordable luxuries- product or services characterized by high levels of perceived quality, taste
and status with a price just high enough not to out of consumers reach.

4.2

Estimating cost

Production Cost
Investment
The details of plant & machinery required is given below:
Sl.No

Particulars

1
2

Manufacturing Plant land lease (5yrs)

Setup, Machinery cost
Total

Amount (Rs)
10,00,000
2,00,000
12,00,000

Costing (Year I)
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PORTABLE GRASS CUTTER (PGC)

Sl.N
o
1
2
3
4
5
6

Particulars
Office Rent
Electricity
(plant)
Administration
Labour
Material Cost
Other
Total

Quanti
ty
1

2
6
1000

Cost

Amount (Rs)

1,80,000
3,60,000

1,80,000
3,60,000

1,50,000
35,000
560

3,00,000
2,10,000
5,60,000
2,84,000
18,94,000

Costing (Year II)

Sl.N
o
1
2
3
4
5
6

Particulars
Office Rent
Electricity
(plant)
Administration
Labour
Material Cost
Other
Total

Quanti
ty
1

2
6
1200

Cost

Amount (Rs)

1,80,000
3,60,000

1,80,000
3,60,000

1,50,000
35,000
560

3,00,000
2,10,000
6,72,000
3,40,000
20,62,000

Costing (Year III)

Sl.N
o
1
2
3
4
5
6

Particulars
Office Rent
Electricity
(plant)
Administration
Labour
Material Cost
Other
Total

Quantit
y
1

3
6
1400

Cost
1,80,000
3,60,000
1,50,000
35,000
560

Amount
(Rs)
1,80,000
3,60,000
4,50,000
2,10,000
7,84,0000
2,85,000
22,89,000

4.3 Analysing competitors prices

Earth Auger Ky-Bc01o Petrol Brush Cutter, Grass
Cutter
Morya Petrol Brush Cutter Side Pack/Grass /Paddy

Rs.
11,900.00
Rs.
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PORTABLE GRASS CUTTER (PGC)

Cutter

11,999.00
Rs.
11,749.00
Rs.
12,249.00

Bosch Art 30 Combitrim Grass Trimmer

Varun Brush Cutter/Shrub Cutter

4.4 Sales Forecast

No. of units
Price
REVENUE
COST OF PRODUCT
Retailer Margin
Total Marketing Expenditure
(20%)
TOTAL COST
TOTAL PROFIT
PROFIT MARGIN

Year 1
Year 2
Year 3
520
540
560
12000
12000
12000
6240000 6480000 6720000
1894000 2062000 2289000
576000
600000
624000
3376000
5846000
394000
6.30%

3016000
5678000
802000
12.30%

2848000
5761000
959000
14.20%

5. DISTRIBUTION CHANNEL
5.1 Channel Objective
Our firm will adopt the mixture of Push strategy and Pull strategy. Our firm is new
to the market for the grass cutter so we will rely on our distributors and retailers to sell our
product through a push strategy. Since the involvement in this category is less, so we will depend
heavily on advertisements and promotions to persuade the consumers to demand the product
from intermediaries.
We will use Hybrid Channels to reach to our customer segment. We will follow the philosophy
of brick and click firm. Our distribution plan will include both online and offline channels.
The main objective is to penetrate the maximum market with minimum cost by utilizing an
optimum distribution network providing high quality maintenance and services.

5.2 Channel Levels:

Manufacturer - Customer A zero level channel, also called a direct marketing channel
is the simplest and shortest channel in which no middlemen is involved and we directly sell the
product to the consumers. It is fast and economical channel of distribution. This is majorly
through companys direct sales force and through internet. In internet selling the individual
customers visit the company website or third party marketplaces like Sulekha, IndiaMart.com,
Snapdeal.com, Ebay.co.in, PumpKart.com, AliBaba.com, Junglee.com, Amazon.com and Also
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PORTABLE GRASS CUTTER (PGC)

through our website wherein customer places request and the product is directly delivered
through companys sales force.
Manufacturer Retailer Customer This channel of distribution involves only one
selling intermediary called 'retailer'. Under this we sell this product to retailers Nurseries,
horticulture institutes who in turn sell to the ultimate consumers.
Manufacturer - Distributor- Retailer - Customer - This is the most important
channel of distribution in which distributor plays an important role of identifying the customer.
This channel is suitable for wider distribution of various industrial products. Since our company
lack the expertise to sell the product to high end customers like Lawn Services Agency it is
easier to sell through the extensive network of privately owned distribution organization.

5.3 Channel Types

Companys Sales force: To sell the product to large potential customers like educational
institutes, golf clubs, and stadiums.
Distributor Network: To sell the product to lawn service agency, horticulture and nurseries.
Retailer Network: To sell the product to individual high income profile customers like
gardeners, landscape garden owners and roof top garden lovers.

5.4

Commissions and Margins:

Commission: A commission of 10% would be given to the retailers to push the product i.e.
marginally higher than our competitor are providing as the product is new to the Goa market. As
the demand for the product increases we would be reducing the margin where in pull strategy
would automate the sales rather the push strategy. A distributer would be given a commission of
12% on the sales he makes to the consumers
Margins: We would have a low margin in the first year i.e. around 10% due to our marketing
cost but then onwards the target margin is 20%.

6. Promotion decision
6.1 Promotion Objective
The product launched by ANPEGG is a new product it is in the introduction stage of the product
life cycle. In order to improve the brand purchasing intension and brand awareness,
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PORTABLE GRASS CUTTER (PGC)

advertisement, events and experience have the highest cost effectiveness, followed by personal
selling by direct sales force to increase the distribution coverage.

6.2 Promotion Mix:

We intend to participate in local trade shows and plant exhibitions wherein we will display our
product and educate people about its benefits. We will also encourage people to go for trail runs.
Once they are interested, direct company sales force can demonstrate it in their place of need.
We plan on printing brochures and distribute it in local plant nurseries, horticulture gardens and
Lawn Services Company as it is a great way of creating awareness among the target segment.
These brochures will be informative, highlighting the product and its benefits.
Printing ads in local newspaper and local garden maintenance magazines will also help in
creating awareness about the product. During the beginning of the ad campaign, the awareness
about the company and its product will be low. So, informative advertisements will serve the
purpose of creating brand awareness and knowledge of new product. After the initial phase of the
ad campaign, we should move on to persuasive ads where it can show comparison between its
products and its competitors.
An increase in sales is projected during the months of June- July due to rainy season when the
rate of growth of vegetation (grass) is high. Taking these facts into consideration, we can target
these potential buyers by introducing new schemes and offers during this particular time period.
These schemes will consist of gifting gardening tools like shovel, rake etc. Garden rake and
shovel cost around Rs 600. Hence would mean free attachments worth about 5% of the portable
grass cutter price. Offers combined with informative ads in newspapers will make sure there is
an increase in demand for the product.
During the winter season, that is during the months of Nov- Feb, when the projected sales are
low because of low rate of growth of vegetation, in order to decrease the inventory stock piling
among the distributors and retailers we can still target potential buyers by introducing schemes
like buy in winter and pay in summer. This will allow buyers to buy the product easily when the
demand is low (month of Nov-Feb) because the product will be readily available with
distributors and pay in when the demand is high (month June-July).

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PORTABLE GRASS CUTTER (PGC)

6.3 Budget Allocation

Advertising
Sales Promotion

Direct Marketing

Local Newspaper
Local Magazine
Fair and Trade Shows
Gifts
Demonstrations
Catalogues
Web Sites

10%
10%
25%
5%
20%
15%
15%
100%

Budget allocation will be maximum for fair and trade shows because different Lawn Services
agencies are the frequent visitors of trade shows. We have allocated 20% for demonstration
dedicated to personal selling aimed at increasing the product experience. Catalogues, local
magazine and newspaper are directed towards high income group residential.
The promotion is aimed at informational appeal to elaborate products benefit, product point-ofparity and point-of-difference.

7. Contingency Plans
At ANPEGG, we have truly invested time and effort in researching possible strategies for a
failed business plan. In the event of a possible reduction in sales we are prepared to scale our
operation down to a single crew production. We will focus on the aspect of our company that
brings in the most revenue. We are also prepared to reduce our top three cash out-flows. These
will include items such as the president and vice presidents salaries and the amount of equipment
we own. We are also prepared to fluctuate our prices in order to meet any demand. If customers
feel that our prices are too high and we will be viewed as quality leader. Transversely, we can
lower our prices to meet a competitive market.
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PORTABLE GRASS CUTTER (PGC)

Should fate grant us positive success we will look to grow our company at a moderate rate.
Growing our manufacturing team, equipment, and experience will help us to achieve profit and
expand throughout the country.

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