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GROUP 10 | SECTION A
PREKSHA GUPTA (B19153) | VANSHIKA SHARMA (B19178) | VENI GUPTA (B19058)
 SITUATION ANALYSIS

Strengths Weaknesses
 People are still not aware about air
 Ease of Use

S W
purifiers
 No additional setup cost  Have Seasonal Demand
 Unique and affordable solution  High installation and maintenance
 Established distribution channel of the costs
company  Optimal Resource Policy
 Great customer reach  Product life is less
 Effective air purifying solution

Opportunities

O T
 Attractive market as pollution is rising
Threats
 Customers are becoming more health conscious  Increasing competition among local
 A tempting market of 4 million AC’s that get added and global players
every year  Entry of new and much efficient
 Hotels, Luxury Spas can be targeted] players in the market
 Could be offered as an accessory with AC, after tying  Conflict of interest with other AC
up with AC manufacturers manufacturers

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 PROBLEM IDENTIFICATION
GAP analysis : For identifying the discrepancy between the actual and potential sales; and the
relevant constraints set by the organization

CURRENT STATE DESIRED STATE

• Turnover of Rs 2580 cr in FY
Constraints :
2017-18 • Work with optimal resources
• Measurable metrics that can be

• Growth in turnover is 5%
scaled up later
Achieve potential sales
target
• Increase in profitability is
30.2%

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ALTERNATIVES FOR RECOMMENDATIONS
ALTERNATIVE
1:
LAUNCHING THE PRODUCT IN TEST MARKETS AND EMPLOYING STRATEGIES TO INCREASE
SALES STRATEGIES TO INCREASE
WHY TEST MARKETS? SALES
STEAL
• Air Filtrete- Novel, never used before product for the INCREASE SALES CUSTOMERS
Indian market, adoption by customers may take time PER CUSTOMER FROM
COMPETITORS
• Though a successful product in the States, should check
the market viability for a different geography Introduce a Affiliate
subscription marketing
• Test Markets will help in understanding the underlying model – repeat /referral bonus
purchases scheme
conditions leading to lesser sales opposed to what was
expected – unfavourable prices, low understanding of
the product among the consumers, lack of demand, Increase tie-ups
Bulk Discounts/
inability to substitute competitors with related
Bundled packs
businesses

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ALTERNATIVES FOR RECOMMENDATIONS
ALTERNATIVE
2:
DIRECTLY EMPLOYING STRATEGIES TO INCREASE SALES WITHOUT TEST
MARKETS
STEAL
INTRODUCE
INCREASE SALES CUSTOMERS EXPAND INTO
NEW PRODUCT
PER CUSTOMER FROM NEW MARKETS
VARIANTS
COMPETITORS

Introduce a Affiliate
Other cities Introduce air
subscription marketing
apart from filters similar to
model – repeat /referral bonus
Bangalore competitors
purchases scheme

Increase tie-ups Increase

Bulk Discounts/
with related Distribution
Bundled packs
businesses channels

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CRITERIA FOR EVALUATION
Cost of Production
Risk of Product Failure
Investment Difference between
test and national market
Opportunity lost due to product in
test market
Competition and vulnerability
Marketing Investment
WE WOULD RECOMMEND 3M TO CONDUCT TEST MARKET RUN TO IDENTIFY CAUSES FOR LOWER SALES
Cost of producing the product is quite high
As the market is new and people are not aware about the product,
risk of failure is quite high
Plant investment for national market is high as compared to test
market
The product is quite new and unique, so the opportunity lost is less
There are a few companies who are coming into air-filter markets so,
the product is vulnerable in the test markets, as competitors can copy
the product
Investment in marketing and advertisements will be quite high for test
markets
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 IMPLEMENTATION OF THE RECOMMENDATION
PREPARE THE SELL THE
CONDUCT THE
PRODUCT FOR PRODUCT TO
TEST AND
SELECTION OF TEST MARKETS THE RETAILERS
ANALYSE THE
TEST REGION & COMPLETE WITH OPTIMAL
RESULTS TO
DURATION OF WITH CONTROL BY
IDENTIFY
TESTING MARKETING THE SALES
UNDERLYING
AND SALES FORCE
FACTORS
PLAN DEPLOYED
POST ANALYSIS OF THE TEST USE THE FOLLOWING STRATEGIES TO INCREASE SALES BASED ON TEST RESULTS

Bundling 2-3 filters

Increase Consumer Subscription packs Increase the existing Referrals by
together so that
awareness regarding since the filters need tie-ups with third installation vendors
customers don’t have to
growing pollution to be changed in 1-3 party installation as well as existing
visit the market every
indoors in cities months vendors customers
month

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TARGET SEGMENT

Business to Customer (B2C)

Attributes of the target customer segment are as follows :
▪ Middle class and above
▪ Health conscious
▪ Families residing in Tier-I/Tier-II North Indian cities

Business to Business (B2B)

▪ Hospitals, nursing homes and clinics
▪ There is an imminent need for air purification pre and post surgeries/invasive procedures
▪ Wards/clinics where aerosol generating procedures are carried out (dental, anaesthetic etc. procedures) would require air
purification especially during the current COVID situation

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 CASH CONSERVATION VS MASS MEDIA ADVERTISING​
• The company has also invested on promotions
• 3M Air Filters have seen a
Great and advertising on these platforms –
Performance on huge sales growth over the online platforms
YouTube influencers, ads on Amazon​
like Amazon for the past 6-8 months​
Online Platforms

Offerings by With an increased demand in air purifiers, more such products will flood the market from other
Competitors competitors – such as Philips, Dyson, Mi

• Lockdown guidelines easing in cities across • Need to tap on offline sales too, require TV
the country, offline air purifier vendors commercials or newspaper ads – can appeal to the
Tap Offline coming back to business emotional side of home-makers to provide a safe
Markets environment to their family during the pandemic

• With small businesses opening up again –

• Mass Media Advertising can also trigger buying
billboards and posters can be leveraged to
through online platforms
target B2B customers too

WE WOULD RECOMMEND 3M TO CONDUCT TEST MARKET RUN TO IDENTIFY CAUSES FOR LOWER SALES

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 B2B/B2C??

We suggest to target Business to Business segment as supply

is limited and there has been a surge in demand in this sector
~8%
due to COVID CAGR
Major targets would be industrial spaces, hospitals, nursing 7.26%
homes and marketplaces where people in large number gather
and hygiene is a concern YOY rate
17000+
Industries requirement

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THANKS!

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