MPC II

COMPANY : HAVELLS INDIA LIMITED

PRODUCT: FAN

Submitted by: Team 1

Aakriti Mishra (PGFA1901)
Ankush Birla (PGFA1910)
Gaurav Khatri (PGFA1918)
Monal Dey (PGFA1928)
Surbhi Sabharwal (PGFA1957)
 OBJECTIVES
• Increase in sales revenue from ₹1500 crore to ₹ 1945 crore , that is 18%
to 21% , assuming fans contributes *15% to total revenue.
• Increase in the net profit generated by fans from existing ₹ 117 crore to ₹
142 crore.
• To increase market share of Havells Fan from 14% to 16% in industry.
• Increase in Sales from existing 24% in 2019 to 29% in 2020-2021
Fan industry CAGR = 13.01%
Havells CAGR = 17%
Havells current market share = 14%
Total market size = 7.15 Cr
Contribution of Fan in overall revenue= 15%
Increased fan market size = 7.15cr*13.01% = 8.10 Cr
Increased market size of Havells from 14% to 16% = 8.10 Cr*16% = 1.29 Cr
 Marketing Strategies for Year 2020-21

1. Product
Product Mix 1. Offer all complete range of fans year-round.
  2. Offer exclusive and customized premium fans on order.

Product Life Cycle 1. Replace the old technology fans with latest technology.
2. Retain bestselling fans range such as Havells Pacer, Stealth
throughout the year.
Quality and Performance 1. Use only the latest technology such as IoT, energy saving,
noise cancellation and anti-dust fans.
2. Produce premium quality ISI approved fans that meet the
highest customer standards.
Brand 1. Emphasize the “Premium” concept to communicate the
superiority of brand over the competitors.
2. Link the brand to attributes such as premium quality, better
design, high end features and socially responsible.
Design and Packaging 1. Use packaging material from sustainable sources to
showcase commitment to the environment.
2. Offer customizable premium fans as per the customer
requirements.
Price
• Cost plus pricing policy will be continued in order to increase sales
revenue.
• For corporate clients we will offer regular and seasonal discounts
to retain and grow the customer base.
• Additional discounts will be offered on purchases made from the
our online store.
Distribution
• Expand distribution channel through retailers, distributors and online stores.
• Increase sales coverage through Havells Galaxy, which is an exclusive store.
• Increase sales team by adding 32 more people (30 salesman 2 sales
manager) and to our existing salesforce of 150 in order to increase our reach
to both channel partners and customers.
• Launch product portfolio through retailer and distributor app called
“mKonnect”
• Launch a web product called Product Tracking and Automation (PTA) in
order to make sure the easy accessibility of fans in the market across the
value chain.
Promotion
• Use of promotion mix which will include bothonline and offline media
such as Newspapers, TV Advertisements, Social Media and Public
Relations for our marketing.
• Recruit sales person and sales manager
• Launch Clean City Campaign by installing fans and bins on bus stops.
• Tie-up with Eco-Sensitive Resorts in which we would install fans with a tag
line which says “You & I both care for the environment”.
• Sponsoring the activities of Start-up conclaves, IPL season.
• Leverage social media like Facebook in which we will organize the Social
Media Marriage Contest.
 Action Plan
January to March 1. We will start integrated campaign both online and offline
using print television, hoardings, radio and internet. Both
online and offline campaigns will majorly focus on our “Clean
India” campaign.
2. We would install about 5000 fans and bins on various bus
stops throughout the country. Also, we will create buzz using
radio platforms and also with the help of influential bloggers. 3.
Further we will also tie-up with Eco-Sensitive Resorts in which
we would install fans with a tag line which says “You & I both
care for the environment”
April to June 1. As multimedia campaign continues we will be sponsoring
major startup conclaves and sports events such as IPL.
2. Our Tv campaign will also promote the idea of decorating
the fifth wall. The ads will feature celebrities
communicating the premium design and customizable
feature of the fans.
July to September 1. We plan to roll out a new social media marketing campaign
this month. Our social media handles will feature “Social
Media Marriage Contest” in which we will invite couples who
are about to get married in October- January. They must send
ideas/proof of what they are going to do differently at their
wedding to make a change to the society. Winner will receive
monetary and non-monetary rewards from Havells.

October to December 1. We will launch major trade campaigns to educate and

improve our channels partnersIn order to make sure the easy
accessibility of fans in the market, we will launch a web product
tracking and automation, across the value chain. This will
prevent counterfeit products infiltrating the supply chain.
Product Tracking and Automation (PTA) will also help in
checking whether genuine components are used in fan
repairing or not. It will also help in improving after sales
service.
Master Schedule

Year : 2020-21

Month 1 2 3 4 5 6 7 8 9 10 11 12 Responsibility

Action Plan

Pricing Sales and Marketing

Advertising Marketing
Product Design Marketing and Engineering
Email Marketing Marketing
Sponsorship Marketing
Expand Portfolio Executive and Marketing
Online Contest Marketing and IT
Implementation Strategies
We are going to implement some marketing strategies that are going to
help in achieving our marketing objective of earning revenue of ₹ 1945
Cr and increase our market share from 14% to 16%.
• Provide regular and seasonal discounts to the corporate clients.
• Decrease the sale of standard fans and focus on the sale of premium
fans more.
• Use renewable material for packaging of our products which will
increase the value of product in consumer mind and will once again
position our product as a prime product.
• Increase our sales through E-Commerce.
Budget
Most of the marketing expenses are for promotion and the additional sales man and sales managers recruited to carry
out the marketing activities. Below is the marketing expense budget for the next one year of the company.
Marketing Budget
Particular Value % of sales
Net Sales ₹ 1,953.60 100.00
Cost of goods sold ₹ 435.55 22.29
₹ 1,518.05 77.71

Marketing Expenses
Sales Expenses ₹ 124.15 6.35
Promotion Expenses ₹ 70.00 3.58
₹ 194.15 9.94
General and Administrative Expenses
Employee Benefit Expenses ₹ 162.40 8.31
Indirect overhead ₹ 32.91 1.68
₹ 195.31 10.00
Operating Profit ₹ 1,128.59 57.77
 Control
•We will be monitoring the sales revenue and units of product sold on monthly basis and frequent
reporting is done by the sales team about the customer satisfaction, customer feedback and about
competitor.

•Marketing research will be done to do a competitor analysis on quarterly basis as this will help in making
changes in the marketing strategies to achieve our objective.

•We have also set a Quarterly target for each of our product that on the basis of quantity sold.
Product Quarter 1 Quarter 2 Quarter 3 Quarter 4
(Apr-Jun) (Jul-sept) (Oct-Dec) (Jan-Mar)
₹ crores ₹ crores ₹ crores ₹ crores

Ceiling Fan 450 350 300 300

Portable Fan 105 110 105 90
Exhaust Fan 70 65 50 50

•Advertising expenses allocated is ₹ 70 Crores, continuous monitoring will be done to ensure that the expense
doesn’t increase the allocated cost.

•The profitability of the company will also be monitored through monthly analysis of product line, channel used for
distribution, and sales volume.