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Marketing Management: Business Studies Project - 1 Yashvi Bothra 12413 7891372295

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MARKETING

MANAGEMENT
BUSINESS STUDIES
PROJECT – 1
Yashvi Bothra
12413
7891372295
WHY HAVE I CHOSEN MOSQUITO
REPELLENT ? The mosquito
repellent market in
Experts predict that the mosquito repellent
India is worth more
industry in India will continue to flourish
than Rs 3,200 crore
There is a need for mosquito in the years to come, and with greater
repellents in India, there are affluence and awareness among the public, There is ample scope for the growth of
concerns among the general we may witness a decline in the usage of the mosquito repellent market in India
public with regard to its mats and coils and an increase in the usage because the distribution network for
hazards. There is an increase of vaporizers.  these products is low. There are 9 lakh
in the awareness among the outlets in India that sell mosquito
public on the chemicals used The urban share of mosquito repellents
in mosquito repellents. repellents is 70%, which shows
The mosquito repellent market in India that with increasing affluence Stagnant water is a breeding ground for
is witnessing a significant growth among the urban population, mosquitoes and in India; places with
because Indians are becoming more more and more people are stagnant water are plenty. Poor sanitary
health conscious. Awareness of purchasing mosquito repellents facilities, street gutters, storm drains,
diseases spread through mosquitoes is as a precautionary measure leaky faucets and clogged rain gutters are
increasing due to a rise in the literacy against diseases spread by breeding grounds for mosquitoes, which
rate. mosquitoes. are rampant in India.
   
RAW MATERIALS REQUIRED

 The active ingredient in a mosquito repellent is primarily responsible for its usefulness. For a material to be valuable as a mosquito repellent, it
must meet certain criteria. First, it must effectively discourage insect attack on the treated area for many hours and on many different types of
surfaces. Second, it must work under a variety of different environmental conditions. Next, it must not be toxic or cause irritation when applied
to human or animal skin. Additionally, it must be cosmetically acceptable, having a pleasant odor, taste, and feel. It should also be harmless to
clothing. Finally, it should have a relatively low cost and be effective against other common types of insects, such as flies.
 While thousands of compounds have been studied for their use as insect repellents, DEET (n, n-diethyl-m-toluamide) has been used more than
any other. DEET is the compound which results from a reaction of m- toluic acid with thionyl chloride followed by a reaction with diethyl
amine. This material is isolated and purified before it is supplied to mosquito repellent manufacturers. Other repellent ingredients used include
citronella oil, dimethyl phthalate, lavender, lemon-grass oil, and peppermint oil. It has been found that mixtures of various repellent
compounds often provide greater effectiveness than any one compound alone. The active ingredients contained in the mosquito repellents
generally make up 5-30% of the final products.
 The inert ingredients that are in a mosquito repellent depend on the form that the product will take. Currently, mosquito repellents are sold as
aerosols, pumps, lotions, and oils. Mosquito repellents that are sold as lotions or creams are essentially skin creams which have DEET added at
a certain level. They are primarily composed of water, surfactants, fatty alcohol, fragrance, and other emollients..
 Aerosols are the most common form for mosquito repellents. They are made up of a few different types of ingredients, including a solvent, a
propellant, and miscellaneous ingredients.. The propellant is a volatile compound which creates the pressure that causes the rest of the product
to be forced out of the container. Common propellants include liquified hydrocarbon gases like propane, butane, or isobutene,
hydrofluorocarbons, and dimethyl ether. Other ingredients such as fragrances and emollients are added to aerosol mosquito repellents to make
them more cosmetically appealing. Still other compounds are added to prevent corrosion and other stability problems.
THE MANUFACTURING PROCESS

The production of mosquito repellents can be


broken down into two steps. First a large batch
of the repellent formulation is made, and then
the batch is filled into the packaging. Since
aerosols are the most common form of mosquito
repellent, the following description details their
production. Other forms of repellents like
creams and lotions are produced in a similar
way, except that the filling process is less
involved.
1. COMPOUNDING

The first step in the manufacturing process is compounding. In the


compounding area, raw materials are mixed together in large stainless steel
tanks. For an aerosol, the alcohol is pumped into the tank, and the other
materials, including DEET, fragrance, and emollients, are manually poured in
and allowed to mix. All of the ingredients except the propellant are added at this
phase of production. Since some of the materials in this process are flammable,
special precautions are taken to prevent explosion, such as using spark-proof
electrical outlets and blast-proof walls.
When the batch is finished, a sample is sent to the quality control lab and tested
to make sure it meets the set standards for the product. After passing these tests it
is pumped to the filling lines to make the finished product.
2. FILLING
The filling line is a series of machines connected by a conveyor belt system that combine
all of the components to make the finished mosquito repellent product. The first machine in
the system feeds the empty cans onto the conveyor line. This machine has a large hopper
that is filled with empty
cans which are physically manipulated until they are standing upright and correctly
oriented. •
The metal cans are then automatically moved along the conveyor belt and cleaned
with a jet of compressed air to remove any dust and debris. They next travel to the
filling carousel. The filling carousel is made up of a series of piston filling heads that
are calibrated to deliver exactly the correct amount of product into the cans. As the
cans move through this section of the filling line, they are filled with product.
The next step in the filling process involves topping the cans with a valve, adding
the propellant, and pressurizing the cans. The valve is put on by the valve inserter
machine. Much like the bin that holds the empty cans, the valves are also put in a
hopper and then correctly sorted and aligned. As the cans pass by, the valves are
put on. These valves are then tightly affixed to the can by the valve crimping
machine. Depending on the type of filling technique, the propellant is either injected
through the valve at high pressure or injected into the can before the valve is
crimped.
After the cans are capped and filled, they are moved to a hot tank, a long trough
filled with hot water. Here the cans are checked for escaping bubbles that would
indicate a propellant leak. The high temperature of the water bath also raises the
internal pressure of the can, which is intended to cause any weak spots in the can
to fail. This is a crucial quality control step that prevents damaged cans from being
sold to the public.
QUALITY CONTROL
Quality control is an essential step in the production of mosquito repellents.
Tests are performed at various points in the manufacturing process to ensure
that the finished products are consistent from run to run, remain effective over
a long period of time, and are safe to use.
Before production begins, the incoming raw materials are checked to ensure
they meet the previously set specifications. Tests such as pH, specific gravity,
and moisture content are typically performed. Additionally, the cans are
inspected for dents, corrosion, and other weaknesses. During manufacture,
samples of the repellent are taken during different points along the filling line,
and the characteristics or the product are tested. Some of the monitored
parameters include the level of active ingredient, pressure, spray rate, and
spray pattern. Other testing is conducted to ensure that the cans evacuate
properly. Also, long-term stability studies may be done to establish that the
cans do not show undue signs of corrosion.
COMPETITORS IN THE MARKET
Good Knight Mosquito Repellent All Out Mosquito Repellent
Good Knight Mosquito Repellent is one of the most There are so many places in India, which are seriously affescted by
mosquitoes and insects and annually a number of people die due to the
popular Mosquito Repellents of India. The brand is in
diseases transmitted by mosquitoes and other insects. Since its inception
the market for several years and is rated high by users. It in the 90’s of the last century, All Out has been a trustworthy insect killer
effectively protects against mosquito bite transmitting for the household purposes. Not only sprays, but All Out also has a wide
infections like malaria, chickengunya and dengue range of liquid vaporizer to make your sleep comfortable at night without
any disturbances from mosquitoes and insects. All Out has become a
stalwart in the industry for more than two decade
•Mortein Mosquito Repellent •Odomos Mosquito Repellent Cream
Mortein is a renowned name in household insecticide.
It is basically an Australian company and is a very Odomos is a clinically proven brand of mosquito repellent
popular insect repellent. Mortein has made a that offers the most effective protection from mosquitoes, the
significant place in Australian household. Mortein has carriers of deadly viruses that cause diseases like Dengue,
the most popular slogan of “More Smart, more safe,
Mortein.” The word Mortein is made by the
Chikungunya, Malaria, Filaria and Encephalitis etc.
combination of two words “mort” meaning (dead) and Independent institutes have clinically tested and certified
“ein” meaning (one). The main active ingredients used Odomos to be the best protector against mosquito bites for as
in Mortein are Allethrin, Pyrethroid and Resmethrin. long as 12 hours.
All these are neuro toxins which can be harmful to
humans when taken in typical doses
Hit Mosquitoes Repellant
With increasing awareness among consumers regarding the
harmful effects of pests, particularly mosquitoes & cockroaches,
their tolerance levels towards them in their houses have also fallen
down significantly. With this, there is a rising need to not just repel
them but kill them, instantly. And this when only one brand comes
to mind, HIT, which is considered the most powerful & efficacious
of pest solutions that kills pests instantly
1. GOOD KNIGHT MOSQUITO REPELLENT
Parent Company Godrej Consumer Products
Category Home care brands
Sector FMCG
Protecting happy moments; Protect who you love with what
you love;
Tagline/ Slogan Push karo, Khush raho
USP Brand equity build over decades by various products

STP

Segment Mid and mass segment both in rural and urban area

Target Group Middle class and upper class households

Protection, non violence, safe gentle effective dependable and un


Positioning obtrusive protection in compete harmony with the housewife
SWOT ANALYSIS
SWOT Analysis

1.Significant presence in all the formats ranging from mats, liquid vaporizers, coils, lotions and aerosols
2.Innovative product advance active liquid vaporizer : the product even awarded as product of year
3.Only coil with fragrance, Widest range of refills and machines, Innovative two coil pack
4. Celebrity brand ambassadors for product promotion
5.Repellent cream with moisturizing and skin care benefits
Strengths
6. Declared as most trusted Brands after survey conducted in 13 cities across India
7.Dedicated research and development team which works towards product development

Weaknesses
1.Good Knight doesn’t  always work in eliminating mosquitoes
2. Limited penetration in rural areas, which can be an important market
1.Community outreach and disease prevention program for tapping Growing market
2. Tie-ups with hotel chains, resorts
Opportunities
3. Expansion in Indian as well as global markets
4.Lotion in sachets, Repellent in gel form, Mosquito repellent oil etc
1. Rising competition in local markets
Threats
2. Popularity of other brands in the same segment
3. High customer brand switching for the FMCG brands
2. ALL OUT MOSIQUITO REPELLANT

Parent Company Karamchand Appliances Pvt Ltd


Category Home care brands

Sector FMCG
Tag line/ Slogan 'Maccharon Pe Vaar, Surakshit Aapka Parivaar
USP

Segment grouping consumers by some criteria 

Target Group choosing which group(s) to sell to 

Positioning select the marketing mix most appropriate for 


the target segment
SWOT ANALYSIS
Strengths It is the largest domestic player, with 69% of the market share.
Bold decision making
Very strong brand (31% Share of Voice)
Superior Japanese wick technology.
Strong manufacturing competence and innovation
Lows cost high reach campaigns.
Innovative marketing strategies.
Product: Ease of use+ Effective
Competitive pricing.

Weaknesses The company is dependent upon one product for major profits.
Retail market penetration not very thorough.
Electricity is an issue.
Main component, Allethrine, is a toxin.
Criticism of advertisement on ethical issues.

Opportunitie Improvement in literacy and health consciousness will increase use of mosquito repellents.
Tremendous scope for rural market penetration as the infrastructure improves.
s Increasing per capita national income resulting in higher disposable income.
Growing middle class and urban population.
Scope for diversify into related products.
3. MORTEIN MOSQUITO REPELLENT
Mortein
Parent Company Reckitt Benckiser
Category Home Care brands
Sector FMCG
Tagline/ Slogan Care for your family
USP Natural way of control from pest.

STP
Segment Pest control segment
Target Group Urban households- Middle class and above
Range of pest control products with natural ingredients which are safe and
Positioning effective
SWOT ANALYSIS
SWOT Analysis

1. Product available in natural form and power form for high pest probe areas.
2. Strong brand presence by advertising and distribution media.
3. Provides complete pest control solutions for households
Strengths 4. New Mortein Nature Gaurd with natural ingredients is safe to use for kids and family
1. Brand present in rural market but is expensive for them
Weaknesses 2. Few people are allergic to such kind of pest repellents fumes

1. To bring out products for economy class


2.Bring out pest repellent creams/gels
Opportunities 3. With urbanization, more hygiene problems in civic areas means more opportunity
1. Mosquito nets
Threats 2. Sprays and coils products
4. ODOMOS MOSQUITO REPELLENT CREAM
Odomos
Parent Company Dabur
Category Home Care brands
Sector FMCG
Tagline/ Slogan 100% protection from disease causing mosquitoes; Safe effective anywhere

USP Market leader in its category of personal care creams in household insecticides

STP
Segment Households and middle class category of the society
Families going out in open areas , Mothers and children going to parks,
Target Group schools
Peaceful sleep overnight and only protection outside the four walls of the
Positioning house with a fragrant cream
SWOT ANALYSIS
SWOT Analysis

1. Has attributes both of a skin lotion and a mosquito repellant cream


2. Fragrance which makes it appealing compared to other mosquito repellants
3. Handy tube and can be applied while travelling or anywhere to provide protection from mosquitoes in schools,
parks and fields
4. Cost effective product in terms of its price and weight
Strengths
5. Works for a long duration thus no need to change the coil again and again or replace the mat
6. One of the most popular brands especially in the semi urban areas

Weaknesses
1. Smallest sub category in household insecticide category
2. Fear of being not suitable particularly to children, can’t be applied in large quantities

1. Promote product’s advantage for people with lung problems as against coils and sprays which release smoke in
closed rooms
2.More R&D investment in improving the product
Opportunities
3.Make product for different skin types or with different fragrances
4. Untapped rural market
1.Price wars with competitors
2.Aggresive competitors
Threats
3.Early market capture by coils and sprays which can reach in all directions and effective against large quantities of
mosquitoes
5. HIT MOSQUITO REPELLENT
Godrej HIT
Parent Company Godrej Consumer Products
Category Home care brands
Sector FMCG
Tagline/ Slogan Ek bhi machhar nahi bachega; Cockroaches die; Kill mosquitoes kill malaria
USP Leader in household insecticide spray market

STP

Segment People who want complete protection from pest

Target Group Lower, middle and upper class people

Positioning Powerful and efficacious pest solution that kills pests instantly
SWOT ANALYSIS
SWOT Analysis

1. Reaching out to a strong consumer base through a Strong distribution network


2.Disruptive innovation of hit magic paper and Hit Kill malaria campaign
3.Wide range of products in forms of aerosols, chalks and baits
4.Powerful imagery and superior product solution such as unique seek and kill applicator
which kill hidden cockroaches
5.Most powerful mosquito solution, acts fastest with visible drop dead action
Strengths 6. Excellent advertising through print media and TVCs
1.Pesticides Poisoning
Weaknesses 2.Limited presence in rural areas, which can be a huge market
1.Expand the segment to wider variety of clothing
2. Tie-ups with hotel chains, resorts
Opportunities 3. Expansion in Indian as well as global markets
1. Rising competition in local markets and pest management firms
2. Popularity of other brands in the same segment
Threats 3. High customer brand switching for the FMCG brands
The Wood
Spring never gets
Essence over
Product and Competition
Features Competitors

• Product category : Mosquito Mosquito repellents


repellent • Leader in the vaporiser type: All out
• Additional features: air freshener and • Other major players:
disinfectant.
• All Out
• Electronic devise + Refill • Good knight
• Organic-Neem-essence; also DEET • Maxo.
free.
• There are some 54 manufacturers and 72
brands
Market Need Identification and
Environment

Common complaints with conventional Repellents:


 bad and unhealthy smell
 presence of DEET (toxic element)

Market Environment
 Competitive Forces
 Economic Forces
 Technological Forces
SWOT ANALYSIS
STRENGTH WEAKNESSES OPPORTUNITIES THREATS

Innovative: Mosquito Lack of Brand awareness. 1600 crore business with Competition from already
repellent with two add on compounded annual growth established brands like All
features. rate of 15% Out.

Organic. Customer would be skeptical First mover advantage: The


about the quality as it is a customers are not aware of
new product. any such product available in
the market (as per our
surveys)

Skeptical about the value for


money.
STP
Benefits: Fragrance, Organic
Health Conscious
Mothers with infants

 Positioning:

Points of Parity Points of Difference


 Mosquito Repellent  Organic (Air
 Vaporizer type purifier)
 Electric  Fragrances
Branding
• Brand name: Wood Essence
• Brand Logo:

• Tag Line: Spring never gets over


• Brand Mantra: Protect. Breathe fresh.
Marketing Mix
Product Price Place Promotion
•Mosquito Repellent •Markup • Market • Newspaper
•Air Freshener+ Air Strategy. • One level distribution Advertisements
channel only retailers
Purifier • Billboards
•Intensive distribution
•Innovative •Push Strategy • Marketing Campaigns
•Organic • Pamphlets
• Posters
DEMAND FORCASTING
• Outlets in MARKET
Provision 410
Stores
Medical 27

Cosmetics 48

Key Outlets 4

Approximate Monthly Sales


Peak Season (June-August, November-January) During Off Season
Provision 40 Provision Stores 10
Stores
Medical 45 Medical 15
Cosmetics 15 Cosmetics 3
Key Outlets 150 Key Outlets 40

Total Yearly Sales: 1,42,464


Financial Forecast
Sales forecast: 74081 units
• Number of units to be produced: 78000
• Vaporiser + liquid: 46597 (59.74% of total units)
• Liquid: 31401 units
• Production cost:
• Vaporiser + liquid: Rs 64.5
• Liquid: Rs 47.5
• Retailer margin: 15%
• Retailer cost:
• Vaporiser + liquid: Rs 124.95; Liquid cost: 80.75
• Liquid: Rs 80.75
0.0 0.11 0.36 0.40 0.11 0.01
No chance Slight Fair Good High Certain
Possibility possibility possibility
PRODUCTION COST
• Total production cost: (3005519.4+1491633)= Rs. 4497152.4
• Total marketing cost
• Hoarding cost: Rs. 320000
• Newspaper advertisement: Rs. 480000
• Awareness campaign: Rs. 124800
• Display (pamphlets and posters): Rs. 59000
• Logistics cost: Rs. 200000
• Packaging cost: Rs. 117000
• VAT(12.5%): ( 375689.925+186454.125)= Rs. 562144.05
• Total expense: Rs. 6301096
SALES FORECAST
• Sales of vaporiser + liquid: 44263
• Sales of liquid: 29818
• 79% of the total units will be sold in peak seasons.
• Ratio of sales of whole unit v/s refill is 4:1 for season 1.
• Ratio of sales of whole unit v/s refill is 1:1 for season 2.
• Ratio of sales of whole unit v/s refill is 2:3 during off seasons.
• Revenue from sales of (vapouriser+liquid): Rs 55,30,662
• Revenue from sales of Liquid(Refill): Rs. 24,07,804
• Total Revenue: Rs. 79,38,465
BREAKEVEN ANALYSIS
o Vaporiser+Liquid
o Total Expense = 4002109
o Total Revenue= 5530662
o Profit = Rs. 15,28,553

Breakeven: 32,030 units

o Liquid
o Total Expense = 2298987
o Total Revenue= 2407804
o Profit = Rs. 108816.9

• Breakeven: 28,470 units

Total Profit: Rs. 16,37,370


Marketing Objectives
• Short term
• Survival
• Increasing brand awareness
• Captivating consumer base

• Long term
• Maximize market share
• Market penetration to Vadodara, Ahmedabad.
• Retain customer loyalty
THANKYOU

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