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Overview•Assorted is a deodorant product under ahypothetical start-up – Redolence Pvt. Ltd.• Partnership basis- 5 Partners•Initial investment is 25 crores
STRENGTH:2 focused ranges for men and womenIncredible humidity absorptioncapacityHigh differentiation factor due tofactors like humidity absorption, dualfragrances in single pack.Good distribution, promotions, andcampaigns for luring customersWEAKNESS:Only an urban market phenomenonDeodorants market is highlycompetitive and hence limited scope toincrease market shareOPPORTUNITY:Expand in more varieties to makepresence feltEventually tie up with hotel chainsand large organizations.THREATS:Deodorants sales are seasonal.Competition from Premium segmentdeodorants like axe, Garnier, set wetetc.
PRODUCT Our product would beoffered in 180 ml pack It will be available in twopacks. The design of the productwould be attractive. The U.S.P. of our product“assorted” would be that,it will be offered as adeodorant, with twofragrances in one bottle.
PRICEThe deodorant would be introduced in the market at aprice of Rs180.A margin of 10% would be kept for the wholesalersand a margin of 25% would be kept for the retailers.
• Our product “Assorted” would be launched inthe national market.• It will be available in every major city of India.We will sell our product at retailoutlets, supermarkets, apparel stores.
CHANNELS OF DISTRIBUTION.MANUFACTURER WHOLESALER RETAILER CUSTOMER We will be distributing our product via supermarkets in the countrylike Big Bazaar, Spencer’s, Hyper city. We would also use traditional channel i.e. unorganised stores. Ourdistribution channel length would two level distribution that willinclude manufacturer, wholesaler, retailer, customer
CHANNEL MEMBERS.To get adequate shelf space in the stores we wouldprovide some discounts to channel members. Initially wewould keep our margins low and allow more margins tothe channel members
Our packaging would be attractive and the bottlewould be made of metal. we would be printing a health tips for keeping skinhealthy on each bottle that we will be produced. We will also be providing sample deodorants for trialpurpose but that would be done only in selectedstores.
NewspapersMagazineSocial networking sitesRadioTelevisionInternet ( Social Networking Sites)BrouchersBill boardsPromotional Events
our promotion strategy would include promotingproduct by providing deodorant in small bottles fortrial purpose (only in selected stores).
Research Costs Total 378002.00Communications Costs Total 641250.00Networking Costs Total 6350.00Promotions Costs Total 557500.00Advertising Costs Total 369100.00Public Relations Costs Total 160000.00Meal Costs Subtotal 37950.00List Service Costs Subtotal 77700.00Audio/Visual Services Subtotal 17870.40Additional Costs Subtotal 21695.00ESTIMATED MARKETING GRAND 2267417.40BUDGET PLAN (in Rs.)
BREAK EVENANALYSISUNIT COST PRICE = Rs. 180Selling price Rs. 180.00Less :Variable cost @ 60% Rs. 108.00Contribution Rs. 72.00BEP (in Units) = Fixed Cost / Contribution per unitBEP (in Units) = 13,88,889 unitsBEP (in Rs.) = Fixed Cost * Selling PriceBEP (in Rs.) = Rs.25,00,00,000
MARK UP PRICEMarket Suggested Retailer Price Rs.180.00Retailers Mark Up Price (25%) Rs.45.00Wholesaler Price Rs.135.00Manufacturers Mark Up Price (10%) Rs.14.00Manufacturers Cost Rs121.00Total Investment = Rs.25, 00, 00,000Total Production in One Year = 10, 00,000 UnitsFixed Cost = 40% of Investment = Rs.10, 00, 00,000
In case the product fails in the market , then wewould come up with new product that will targetyouths. We will reposition our product and somealteration will be made in its composition. we willuse the fixed facilities that we already have.