Group Members

Syeda Alisha Fatima: 190010

Shama Khan: 190011
Zara Muskan Afridi : 190013

ERO BY COLLBRAINS INCORPORATIONS

LIMITED
TABLE OF CONTENTS
Introduction ........................................................................................................................................................................ 4
OBJECTIVES.......................................................................................................................................................................... 5
ISSUES ................................................................................................................................................................................. 5
Swot: ................................................................................................................................................................................... 5
Strength ........................................................................................................................................................................... 6
 Watch the Expenses ................................................................................................................................................ 6
 Strong Shield ........................................................................................................................................................... 6
 Continuous Monitoring ............................................................................................................................................ 6
Weakness ........................................................................................................................................................................ 6
Threats ............................................................................................................................................................................ 6
 Being out-performed by competitors: ...................................................................................................................... 6
 Brand loyalty: .......................................................................................................................................................... 6
 Consumer Spending Pattern: ................................................................................................................................... 6
 Cost Advantage: ...................................................................................................................................................... 7
Opportunities: ................................................................................................................................................................. 7
 Revenue Opportunities: ........................................................................................................................................... 7
 Globalization: .......................................................................................................................................................... 7
 Safety Standards:..................................................................................................................................................... 7
Marketing Strategy............................................................................................................................................................... 7
Segmentation/Targeting .................................................................................................................................................. 8
Target Market .................................................................................................................................................................. 8
Brand Positioning ................................................................................................................................................................. 8
Points of Difference: ........................................................................................................................................................ 8
Points of Parity: ............................................................................................................................................................... 8
Perceptual Map: Positioning of Brand Ero ........................................................................................................................... 9
Brand Mantra: ..................................................................................................................................................................... 9
Differentiation strategies..................................................................................................................................................... 9
Employee differentiation: ................................................................................................................................................ 9
Channel differentiation:................................................................................................................................................... 9
ADD On Services Differentiation: ..................................................................................................................................... 9
Branding ............................................................................................................................................................................ 10
Get yourself ERO and be safe & free: ............................................................................................................................. 10
 Amalgam of Emotional branding and Brand Journalism: ............................................................................................... 10
Pricing Strategies ............................................................................................................................................................... 10
Markup pricing: ............................................................................................................................................................. 10
Price Skimming Strategy: ............................................................................................................................................... 11
Segmentation Pricing Strategy: ...................................................................................................................................... 11
Going-Rate Pricing Strategy: .......................................................................................................................................... 11
Marketing Channels........................................................................................................................................................... 12
B2C Consumer- marketing Channel ................................................................................................................................... 13
B2B Industrial- Marketing Channel .................................................................................................................................... 13
Decision regarding the Channel design: ......................................................................................................................... 13
Managing the channel and conflicts: ............................................................................................................................. 13
Integrated marketing communication ............................................................................................................................... 14
Advertising: ................................................................................................................................................................... 14
Sales promotion:............................................................................................................................................................ 14
PERsonal selling: ............................................................................................................................................................ 14
word-of-MOUTH MARKETING:....................................................................................................................................... 14
Customer realtionship management ................................................................................................................................. 15
MESSAGE FROM CEO:

Ero’s mission is to serve our consumers and protect the environment through environmentally friendly
operation. We aim to be most committed by providing excellence to improve the quality of living and
to drive sustainability. Our vision is to be the most trusted one with irresistible appeal in the global
market. We are swiftly and dynamically innovating to keep ahead in rapidly changing world. None of
this, however, would be possible without our shareholders and it is with this in the mind that I express
my sincerest thanks to the board and shareholders for their sustained and ongoing support.

I also extend my gratitude to my team for their continued commitment to our cause. We will continue
striving to satisfy our customers, creating unique value beyond their expectations.

Sincerely,

Founder and CEO| Collbrains Incorporations Limited.

INTRODUCTION

Ero is manufactured by its parent company under the name of Collbrains. Alongside with Ero
Collbrains also manufactures some other electronic devices and is a recognized as a well-known brand.
Now the introduction of Ero is category extension and Collbrains is willing to be successful in this
product just like its other known devices.

Ero is a device that detects the presence of gases in an area, often as part of a safety system. This type
of equipment is used to detect a gas leak or other emissions and can interface with a control system so
a process can be automatically shut down. A gas detector can sound an alarm to operators in the area
where the leak is occurring, giving them the opportunity to leave.

Ero’s unique proposition is that it can detect 10 -15 gases leakage at one time compared to other 5 gas
sensors. Ero is way more user friendly, durable, authentic and a hassle-free device which will add to
protection and safety of our working laborers and our locals living in commercial areas. It will help in
addressing the issues of those working labors who have safety issues at work. Alongside with the
guarantee of the safety of those common people who are suffering from the fear of losing their lives
daily in accidents of Gas leaks. We came up after this product when the secondary data was gathered
of daily life incidents at homes and in factories. In this Pandemic condition where people are in pain of
losing their loved ones from this contagious virus; we aim at saving those who are safe with us but are
at unseen and unidentified risks. In this rapidly growing world of technology where businesses come
into being only for profits we used CSR as our pillar. Our entire focus was on the well-being of our
working laborers and innocent peoples. We pledge this by honor that our only aim was to cause no
unnecessary harm and have tried to build the best environment sustainability product
OBJECTIVES

The objectives of our product are

 To alert on both minor and severe gas leakages.

 To be capable of detecting air toxicity and presence of combustible gas in the air.
 To help detecting the gas leaked and generates a signal to take proper action to avoid gas
leakage.
 To use these detectors in the industries, residences and commercial zones to avoid mishaps
from gas leakage.

ISSUES

 Gas leakage is a global issue. It occurs in homes, offices and industries, this leakage can occur
anywhere.
 Gas leaks within the home are usually the results of poorly fitted, badly maintained or faulty
appliances like stoves and room heaters. There are several deaths per year linked to gas leaks in
addition to hundreds of hospitalizations.
 Incorrectly fitted or poorly maintained gas appliances produce a highly poisonous gas carbon
monoxide.
 This gas is odorless and it deadly dangerous. Carbon monoxide is a form of slow poison. It is
highly flammable, and increases the risk of fire and explosion.
 Oil & gas industry enjoys continuous growth in our country which helps all the related
industries to grow at a continuous pace. With an increase in oil and gas extraction activities, the
threat of emission of several hazardous gases has increased.
 In intensive work industries such as manufacturing, mining, oil & gas the incidences of gas leaks
leading to explosions have been growing at an exponential rate.

SWOT:
STRENGTH

 WATCH THE EXPENSES

With a gas detection system, we can reduce the amount of time it takes for an assessment
because we do not have to manually monitor the potential for explosion in the area. This will
cut down on the number of hours spent over labor, and ultimately, that means saving money
on the expenses.
 STRONG SHIELD
When we have a gas detection system, we can monitor the amount of gases in our
environment. Because of this, we can tell when there is a higher chance of poisoning, explosion,
fire or asphyxiation. Giving our personnel a safe environment to work in will mean that more
work gets done, and we will have to spend less time worrying about things going wrong.
 CONTINUOUS MONITORING

The benefit of a gas detection system is that it will provide us with 24/7 monitoring, and we can
watch all areas. Even if we have a section left unmanned the majority of the time, we still need
to monitor it to warn our personnel of a hazardous environment before entering. When we can
detect hazardous gases in advance, we will reduce the safety risks on the job, and many times,
we will satisfy the criteria on our insurance policy.
WEAKNESS

 IR detectors can only detect gases that are strongly absorbent in the infrared spectrum
 Dusty environments, high humidity, and high temperature can cause performance to degrade
over time, leading to higher maintenance costs.
 A main weakness is that catalytic gas detectors require oxygen for detection.
 Agents such as halogen compounds will inhibit the catalytic sensor and curtail its ability to
function. Entrapment of dust in the flame arrestor or exposure to heavy oils and greases can
also impair the sensor.
 Prolong exposure to high concentration of combustible gases may degrade sensor
performance.

THREATS

 BEING OUT-PERFORMED BY COMPETITORS:

Our competitive position will be at risk if competitor uses better an improved technology and
will introduce a break-through new products.
 BRAND LOYALTY:
Consumer in the industry show strong preferences for the products of already existing
companies.
 CONSUMER SPENDING PATTERN :
 The already established companies might exert a significant influence on our ability to generate
profit as we are new entrant in the market and consumers on the consumer loyalty end of the
spectrum will certainly believe that already existing brand provides better service and quality so
they will definitely shop from already established brands.

 COST ADVANTAGE :
 The existing companies will easily produce and offer their product at a lower cost than us.
 Competitors targeting our product gaps.

OPPORTUNITIES:

 REVENUE OPPORTUNITIES:

Technological advancements and new product launch are expected to create potential revenue
opportunities for operating in market.

 GLOBALIZATION:
Globalization of business will include increased international competition and the emergence
of regional and global customers and resource markets.
 SAFETY STANDARDS:
The government might intervene and make it mandatory for everyone to install gas leakage
detectors in residence, commercial zones and industries to maintain higher safety standards.

MARKETING STRATEGY
SEGMENTATION/TARGETING

Before launching the product, our company did an in depth market research to identify our actual and
potential customers. We conducted a market research based on consumer market segments which
include geographic segmentation, demographic segmentation, psychographic segmentation and
behavioral segmentation. After the market research we were able to find that the preferences and the
requirements of customer varied according to the above mentioned segments.

TARGET MARKET

After an in depth marketing analysis we were able to target our potential customers and as well actual
customers. Our main target is residence, industrial sector and commercial zone. As our product is
personal safety instrument, and the data we collected from the market research showed us that
various manufacturing industries are recently focusing on the use of advanced portable gas leak
detectors to maintain higher safety standards at the workplace. So such a product is high in demand
and our gas leakage detector will help to ensure better personal safety in hazardous work
environments and in household.

BRAND POSITIONING

Our product Ero is completely new in the market of Pakistan so we have the advantage of creating a
positioning that suits us and will be exclusive to our brand because for now we have no competition in
the market locally. Many accidents occur in our country because of gas leakage and many people lose
their lives. So we are offering safety to the people through our product. Also our product is durable
and will function for a long time, free of the fuss of changing the product every few months and the
price is appropriate to the value it gives to the customers.

POINTS OF DIFFERENCE:
1. As our product falls in the category of electronic devices so for electronic devices customers
want user friendly, reliable and durable. So our product is user friendly, do not require special
technical skill to use it. Our product can work in extreme conditions and will not fail to ring the
alarm in case of leakage.
2. Our product is unique and is not offered by anyone else in the local market. Also deliver the
best quality and work in extreme conditions of toxic air.

POINTS OF PARITY:
As for now we do not have any competitors in the local market so there are no points of parity for
now. But in the future if there are new entrants in the market then we will review our PODs and POPs
once again and evolve it according to the current time.

PERCEPTUAL MAP: POSITIONING OF BRAND ERO

Low Durability

Less Safety More safety (100%)

High Durability

BRAND MANTRA:

Our brand mantra is “Authenticity, Durability, Reliability and Safe innovation”.

DIFFERENTIATION STRATEGIES

EMPLOYEE DIFFERENTIATION:
Our employees will be well trained, soft spoken and efficient that will answer all the queries of
customers on time without being rude. They will also explain the usage of the product to the
customers and provide best customer service.

CHANNEL DIFFERENTIATION:
Our product will be available in many super markets that would cover a wide range of customers,
Also our online channel will be efficient and deliver on time.

ADD ON SERVICES DIFFERENTIATION:

 We will offer add-on services like 1 year warranty etc.Also if customers find any difficulty in the
usage or if they find any fault with the product they can contact on our helpline and an employee
from our company will go their houses and fix the problem. Our team will be reliable, resilient and
innovative.

BRANDING

GET YOURSELF ERO AND BE SAFE & FREE:

Our product ensures safety to the consumers. Buy Ero and spends your days and nights freely without
worrying for your life and your family lives. Be assured that we care for your safety because for us our
customers’ safety is a top priority.

AMALGAM OF EMOTIONAL BRANDING AND BRAND JOURNALISM:

Our branding will initially consist of emotional branding by highlighting the facts and stories of the
households that were victims of gas leakage incidents and then later on to ensure our point of
difference of safety and safe device we will also do brand journalism that will be based on customer
feedback data.

PRICING STRATEGIES

MARKUP PRICING:
At the initial level for the first 2 years the costs we are facing on Ero we want to breakeven and recover
our investment and other setup costs. Although markup pricing has its flaws but since we have
selected this strategy for our start-up. So for our product Ero we will adopt markup pricing method.

Variable cost= Rs.45000

Fixed cost=10000000

Expected unit sales=5000

Unit cost=Variable +Fixed cost/Unit sales

=45000+10000000/5000

=47000

Markup %=27%

Markup price=Unit cost/1-Markup

=47000/1-0.27=47000/0.73

=Rs.64, 383.5 approximately Rs.65000

PRICE SKIMMING STRATEGY:

As we have the competitive advantage of being the only company to provide this new
technology and also the competitive advantage of safest product then we will charge high price
i-e Rs 65,000.If in time new competitors enter the market then we will change our strategy.

SEGMENTATION PRICING STRATEGY:

We can also do segmentation pricing according to the type of customer. Like we can charge
relatively low price from house-hold customers and can charge high price from Office
customers that would require more time and service to cover large areas of the office premises.
Also office folks are less price-sensitive as compared to house-hold folks.

GOING-RATE PRICING STRATEGY:

In way future if the market becomes too much saturated and other competitor become market
leader then we can also switch to going-rate pricing strategy and price our product according to
the price of the market leader.
MARKETING CHANNELS

Since Ero is mainly targeting residential, industrial sector and commercial zone. So we have a both B2B
and B2C markets and slightly different channel integration for both. In order to be the successful new
entrant Ero has a completely organized set of channels to facilitate the transactions and physical
exchange. In order to reach out to our end consumers our company Collbrains is selling it through the
use of indirect channel with selective intermediaries. Suppliers are the value network dealers in our
channel in both markets linked through a yearly contract. All the required raw materials are purchased
by them at a low cost and good quality and durability are ensured. Ero’s Brand mantra will be highly
communicated among the manufacturers as they are the pillar to our regular and industrial consumer
satisfaction. For our both B2B and B2C markets Ero has one-level marketing channel. For its
operations it contains only one selling intermediary. The Retailer which itself is the manufacturing
company Collbrains. Collbrains will efficiently train employees and equip them with complete
knowledge of device working. For the Industrial marketing channels with a B2B market has the
intermediary linking the end industrial consumer is the Industrial distributor which can be some times
the retailing and manufacturing company Collbrains itself and in sometime dealers are being hired
since some of the industries are in the remote areas so a dealer will help in reaching out to those areas
lacking some basic facilities .In order to ensure the control over the chain the channel level for Ero is
limited.
B2C CONSUMER- MARKETING CHANNEL

Manufacturers Retailer Consumers

B2B INDUSTRIAL- MARKETING CHANNEL

Industrial
Manufacturers distributor/Dealer/R Industrial Consumers
etailer

Ero would have the Forward directional flows as well as the backward directional or either way called
as reverse flow in case of some damaged devices. And those pieces will be repaired at the retailer shop
and if some further complications and putting will be necessary then it’ll be sent back to manufacturer.
Ero is going to have the incorporation of physical flow of its raw materials and final product to end
consumer. Payment flow will be there in Ero’s channel because of the backward flow of money from
the consumers to the parent company. In order to check out for the complaints or any damaged part
information will flow in both the directions.

DECISION REGARDING T HE CHANNEL DESIGN:

Channel is designed by not including many intermediaries in the channel as Consumer and
business markets both are being targeted just with slight changes. Wholesalers were decided to
be excluded for the first year because of the lesser no. of units being produced and to lessen up
the costs for the initial startup. Collbrains will be referring towards the use of their own sales
force and internet as the cost per transaction versus the value added by the channel.

MANAGING THE CHANNEL AND CONFLICTS:

Channel will be managed by selecting efficient and experienced sales person .Rewards,
Innovation, training and enforcement of coercive power will be our tools to manage the
channel. This will be clearly put to terms that any serious violations from the brand mantra by
the manufacturers might result in cancelation of next-years contract. A corporately Vertical
marketing system (VMS) will be adopted to avoid any possible conflict
If in any case a conflict occurs then in such case super-ordinate goals and co-optation strategy
will be adopted. Because by creating a sense of belonging and a joint goal and also paying heed
to the issues of complainers will possibly solve the conflicts.
INTEGRATED MARKETING COMMUNICATION

ADVERTISING:

 Collaborating with well-known bloggers and social media artists for engaging audiences with
some viral challenge to get the attention of industrialists and commercialists.

 Coll brains will be distributing pamphlets and flyers to every household.

 Print media (newspaper and magazines like HELLO Pakistan, Sunday times and Fuchsia) will also
be used.

 Since Ero was manufactured entirely on high consideration of CSR (Corporate social
responsibility) we’ll be creating environmental ads in some famous public places.

 In the current situation of Covid-19 we’ll surprise people with attractive Billboards with
advertising it as Caim (A sanctuary, an invisible circle of protection even in tye darkest times)
with “Buy more Ero”.

SALES PROMOTION:

 Ero will be promoted at trade shows and proper demonstrations will be guarded.
 Once our device will cross the expected sales point discounts will be offered at the retail shop
along with at the official website for Collbrains.
 For our B2B market Volume discounts will be offered. Industrialists buying in bulk will be
offered a money-back-guarantee and a 25% discount to some loyal end core heavy return
consumers.
 Collbrains will partner with some petroleum and other businesses and offer coupons for both
markets.
 Direct targeted Email marketing with a pre-information of credible and limited information
about upcoming promotions will help garner up the loyalty and maintain reputation .This
strategy will be particularly customized for b2b market .

PERSONAL SELLING:

 Door-to-door selling will be practiced to persuade commercial people residing in local areas to
buy this safety product under the tagline of “Still a life saver in pandemic”.
 For our B2B market where it is difficult to reach out to the industrialists dealers will do their
part in approaching industrial consumers.

WORD-OF-MOUTH MARKETING:
  Buzz marketing will be done by Bloggers and with the use of user-generated contents such as
YouTube, tiktok, Intsagram and Facebook ads and videos excitement will be created.
 Customer reviews on our official website, Intsagram and Facebook IDs will act as a testimonial
for others.
 Powerful opinion-leaders and celebrities who have heavy following their words can create a
powerful image in the minds of consumers and can act alongside as a stronger PR(Public
relations) strategy also.

CUSTOMER REALTIONSHIP MANAGEMENT

In order to maintain good relations with customers and a strong trustworthy bond for Ero some of the
strategies put to effect will be following:

 In order to build loyalty with customers of Ero all the touch points are highly considered
including the entry at gate, staffs help for directing at the required counter, employee behavior,
time, money, convenience and satisfaction from the product.
 In order to maintain the customer database for Ero and to retain the loyal customers we have
already differentiated our employees and have made them knowledgeable and trained to
reduce any inconveniences caused. And if further any happens then we have a complaint
system committee which considers all the issues faced by the industrial consumers as well as
the household.
 To further strengthen the relationship we will increase the contract period for mainly our
industrialists and locals buying in large volume stock.
 In order to grow our sales revenue earned from the already existing customer, employees will
be trained to up sell in a way that our customer doesn’t get irritated.
  Idcard membership program for industrialists buying large volume stocks and frequently they’ll
be given club cards and for every one device purchased it’ll get them an additional points on
the card. And once it hits a certain points some other durable products from Collbrains will be
given to them as a gesture for a hardcore loyal.

WORK LOAD DISTRIBUTION

ZARA MUSKAN AFRIDI  PROJECT IDEA
 OBJECTIVES/ISSUES
 ENVIRONMENTAL ANAYLYSIS: SWOT
 MARKETING STRATEGY
SHAMA KHAN  PROJECT IDEA
 BRAND POSITIONING
 DIFFERENTIATION STRATEGY
 PRICING STRATEGY
SYEDA ALISHA FATIMA  MARKETING CHANNELS
 INTEGRATED MARKET COMMUNICATION
 CUSTOMER RELATIONSHIP MANAGEMENT