This is Prateek Mishra from Ramaiah institute of management studies, Bangalore and the following presentation gives an overview of launch of a hypothetical product into the market.
5. Overview
•Assorted is a deodorant product under a
hypothetical start-up – Redolence Pvt. Ltd.
• Partnership basis- 5 Partners
•Initial investment is 25 crores
6.
7. STRENGTH:
2 focused ranges for men and women
Incredible humidity absorption
capacity
High differentiation factor due to
factors like humidity absorption, dual
fragrances in single pack.
Good distribution, promotions, and
campaigns for luring customers
WEAKNESS:
Only an urban market phenomenon
Deodorants market is highly
competitive and hence limited scope to
increase market share
OPPORTUNITY:
Expand in more varieties to make
presence felt
Eventually tie up with hotel chains
and large organizations.
THREATS:
Deodorants sales are seasonal.
Competition from Premium segment
deodorants like axe, Garnier, set wet
etc.
16. PRODUCT
Our product would be
offered in 180 ml pack
It will be available in two
packs.
The design of the product
would be attractive.
The U.S.P. of our product
“assorted” would be that,
it will be offered as a
deodorant, with two
fragrances in one bottle.
17. PRICE
The deodorant would be introduced in the market at a
price of Rs180.
A margin of 10% would be kept for the wholesalers
and a margin of 25% would be kept for the retailers.
18. • Our product “Assorted” would be launched in
the national market.
• It will be available in every major city of India.
We will sell our product at retail
outlets, supermarkets, apparel stores.
19. CHANNELS OF DISTRIBUTION
.
MANUFACTURER WHOLESALER RETAILER CUSTOMER
We will be distributing our product via supermarkets in the country
like Big Bazaar, Spencer’s, Hyper city.
We would also use traditional channel i.e. unorganised stores. Our
distribution channel length would two level distribution that will
include manufacturer, wholesaler, retailer, customer
20. CHANNEL MEMBERS
.
To get adequate shelf space in the stores we would
provide some discounts to channel members. Initially we
would keep our margins low and allow more margins to
the channel members
21. Our packaging would be attractive and the bottle
would be made of metal.
we would be printing a health tips for keeping skin
healthy on each bottle that we will be produced.
We will also be providing sample deodorants for trial
purpose but that would be done only in selected
stores.
27. Research Costs Total 378002.00
Communications Costs Total 641250.00
Networking Costs Total 6350.00
Promotions Costs Total 557500.00
Advertising Costs Total 369100.00
Public Relations Costs Total 160000.00
Meal Costs Subtotal 37950.00
List Service Costs Subtotal 77700.00
Audio/Visual Services Subtotal 17870.40
Additional Costs Subtotal 21695.00
ESTIMATED MARKETING GRAND 2267417.40
BUDGET PLAN (in Rs.)
28. BREAK EVEN
ANALYSIS
UNIT COST PRICE = Rs. 180
Selling price Rs. 180.00
Less :Variable cost @ 60% Rs. 108.00
Contribution Rs. 72.00
BEP (in Units) = Fixed Cost / Contribution per unit
BEP (in Units) = 13,88,889 units
BEP (in Rs.) = Fixed Cost * Selling Price
BEP (in Rs.) = Rs.25,00,00,000
29. MARK UP PRICE
Market Suggested Retailer Price Rs.180.00
Retailers Mark Up Price (25%) Rs.45.00
Wholesaler Price Rs.135.00
Manufacturers Mark Up Price (10%) Rs.14.00
Manufacturers Cost Rs121.00
Total Investment = Rs.25, 00, 00,000
Total Production in One Year = 10, 00,000 Units
Fixed Cost = 40% of Investment = Rs.10, 00, 00,000
30. In case the product fails in the market , then we
would come up with new product that will target
youths. We will reposition our product and some
alteration will be made in its composition. we will
use the fixed facilities that we already have.