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The market for insecticides and repellents has grown by 20 per cent in
2003-04 and is estimated to grow at about 20%. The rural market for
mosquito repellents is reckoned at around Rs 173 million against a
mere Rs 79 million in urban centers. The market leader of the industry
is Godrej Sara Lee Ltd. with brands like Good Knight, Jet and Hit
enjoying a market share of 40%
THE EVOLUTION:
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In the latter half of the 1990s, the market became much more
competitive, with the entry of GSLL, Reckitt Benckiser and HLL. GSLL
launched an array of brands (all coils) like Jet Fighter (1997),
GoodKnight Jumbo (1999) and GoodKnight Instant one after the other
The company's other brands included Banish (mats), Hit (aerosols), Hit
Lines (chalks), Mosfree (lotion) and Hexit (spray).while Reckitt also
launched its range of mats and coils. These new entrants resorted to
heavy advertising and aggressive sales promotion tactics. Recently
two new categories of personal sprays and gels have emerged.
MAJOR PLAYERS
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together account for 24% of the vaporizer segment.
Market Follower: Mortein Vaporizer by Reckitt Benckiser has a
market share of about 5-7%.
The name All Out is almost a generic name for Liquid Vaporizers
(vaporizers), a segment of Rs.22O crores in the mosquito repellant
industry in India. All out is the market leader in this segment with a 70
percent market share in 2001. KAPL was almost solely responsible for
creating this segment. Within a decade of its launch, All Out had
converted a large number of customers into vaporizer users.
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GoodKnight brand in 1996-97. Although the initial success of All Out
was largely due to technological innovation and first-mover
advantages, it was widely believed that what had kept the brand going
was strong marketing. KAPL decided to handle the advertising for All
Out on its own, surprising many industry watchers and drawing
criticism from some ad agencies. However, the company surprised
everybody with the launch of a campaign featuring an animated,
jumping frog (actually an All Out vaporizer) eating mosquitoes, which
proved to be immensely successful.
In 1998, KAPL came out with a Rs 99 pack consisting of the Pluggy and
a refill. The deal, called the 'deadly offer' was backed by heavy
advertising. . After KAPL's 'deadly exchange scheme,' GoodKnight's
share decreased by 9.3% in volume terms between September 1999
and February 2000.
Godrej Sara Lee Ltd. is a 450 crore turnover company with brands
like Good Knight, Jet and Hit. It is the market leader in the mats
segment with a share of 68% in May 2000. Good Knight has
become the most preferred mosquito repellent solution in the
country. The Good Knight brand was launched by Transelektra
Domestic Products Ltd (TDPL) in 1984. The product was innovative
and perfectly priced. Good Knight worked on a long term strategy
that would capitalize on its long-established equity.
In the mid 1990s, Good Knight faced growing competition from new
coil and vaporizer products. To counter this thrust, Good Knight re-
launched its mat first as Super mat and finally as Good Knight Silver
mat in 2003, with contemporary packing, superior technology and
using a high decibel campaign. Today Good Knight Silver mat is a
market leader with 62% market share.
By 1999, Good Knight also joined the battle for the coils by
launching its red coil variant. Since Good Knight was seen to be a
hi-tech brand and coils were regarded as an entry-level product, the
company made sure that it did not suffer a downgrade in consumer
perception. It branded its version as a value-added product, which
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lasted ten hours (compared to eight hours in the case of most
others). The color red was meant to convey power. . The red coil
category created by Good Knight is growing and has cornered 50%
of the coil market.
RECKITT BENCKISER
MORTEIN
2) Safer And Convenient: Vaporizers are safer than coils since they
just have to be switched on. They are far more convenient as well.
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Many people complain of breathing problems with coils which is
eliminated through vaporizers.
1) Threat of competitors
The threat of competitors is high because there are a lot of players in
the market and two new segments that is personal sprays and gels
have come in which will increase the existing competition. Also
existing players are entering new segments which increase the
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competition like Casper entering the vaporizer segment and Good
Knight the personal spray and gel segment.
FUTURE
According to industry reports, the Indian mosquito repellant market
was expected to grow rapidly. Analysts said that with improvement
in literacy and health consciousness in rural areas, the use of
mosquito repellants was expected to increase substantially in these
areas. As the per capita usage of repellants was very low in the
country, there was considerable scope for the market to expand.
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LAUNCH OF A MOSQUITO REPELLENT- FIGHTER
ABOUT FIGHTER
Our product is a mosquito repellent vaporizer machine and its refill.
The machine has an added feature of being operated with AA battery.
This battery if used everyday will work for about 45 days. So it can be
used even without electricity and can be used outdoors as well; for
example tents, cars, etc. The refill will be available in 25ml pack which
will last 30 nights, 35ml which will last about 45 nights and 45ml
lasting 60 nights subject it is used for 8 hours every night. The liquid is
light green in color. The vaporizer liquid is herbal. It is very economical.
Some of the benefits of our product are:
1) Effective evacuation of mosquitoes
2) No irritation of eyes
3) No hoarseness of throat,
4) No headaches and
5) No allergies.
Due to complex structure of herbal extracts in our vaporizer liquid,
mosquito do not develop immunity/resistance towards it like synthetic
toxicants.
USP: The USP of our product is that it is the most effective herbal
vaporizer which has an added feature of being operated with a battery.
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INGREDIENTS: The ingredients of our product are:
• Eucalyptus extract containing 50% p-methane-3 and 8-diol(PMD)
• Lemongrass oil
• Citronella oil
• Tulasi oil
• Clove extract
• Palmarosa oil
MARKETING MIX
1) PRODUCT:
SEGMENTATION
Geographic: Initially using the geographic variable Fighter has
segmented the market into the western belt that is the states of
Gujarat, Maharashtra, Karnataka, Kerala and the union territories of
Goa and Daman, Diu.
Psychographic: It has also segmented on the lifestyle variable, for
people who have an adventurous lifestyle who can carry our vaporizer
at their outings.
Socio-economic Classification: SEC A, SEC B and SEC C. We have also
included SEC C because vaporizer is considered to be a premium
product but we want FIGHTER to be used by SEC C as well since it is
economical compared to the other vaporizers in the market.
Behavioral: Fighter has segmented on the benefit variable by providing
the benefit of being protected from mosquitoes.
Fighter has also segmented on the basis of occasion where it can used
on occasions like camps, outings provided used in a closed area.
TARGETING
Our target market is SEC A, SEC B and SEC C.
Income: Rs. 60,000+ p.a.
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We would aim to target our customer which will be a woman because
Fighter is a household product and usually the woman buys it.
POSITIONING STATEMENT
Fighter is primarily positioned as “A battery operated herbal vaporizer
which is the most effective to repel mosquitoes, absolutely safe,
convenient and economical which protects you always.”
PRODUCT DIFFERENTIATION
Our product is one of its kinds. Most of the other vaporizers are
chemical based, whereas we are the first movers to have a complete
herbal vaporizer. We have an added feature of a battery as well. Most
of the other vaporizers become ineffective if there are power cuts but
FIGHTER overcomes this problem.
POSITIOINING STRATEGY
Our positioning strategy is benefit positioning since we want to be
known as the most effective herbal vaporizer.
2) PRICE
The price of our combi-pack is Rs. 67/-.The price of the 25ml refill is
Rs.32/- 35ml refill is Rs.42/- and 45ml refill is Rs.52/-.
Our pricing strategy is Penetration Pricing because we want to sell high
volumes which will result in high long-run profits. The price of our
product is low as compared to our competitors mainly because we are
using herbal products and thereby our manufacturing costs are low.
We want to penetrate into the market and want to be known as the a
product which is value for money.
3) PLACE
We have a three-tier distribution system which includes
MANUFACTURER- DISTRIBUTOR- STOCKIST-WHOLESALER-RETAILER
The margins are as follows:
Distributor 2%
Stockist 3%
Wholesaler 5%
Retailer 12%
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north, central and south. Karnataka will have two distributors and even
Kerala will have two distributors. These distributors will appoint their
stockists who in turn would appoint the wholesalers.
4) PROMOTION
The means that we have used for promoting our product are as
follows:
1) Print Ads
2) Hoardings
3) TV Commercial
4) Press Conference
We have two print ads for promoting our product and creating
awareness among the public. These will be published in the leading
newspapers. The hoarding will be will be shown in all the major cities.
We have one TV commercial which will be aired for about six months.
The message appeal of the ad is that of benefits and uniqueness of
product. On the day of the launch of the product we will call upon a
press conference for creating awareness about our product through
the media. The following are our print ads and storyboard:
This is our first print ad wherein we want to show that our product is a
herbal product.
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Storyboard
Frame1:
Sadhu is trying to meditate in a hunt in a jungle.
Frame 2:
The mosquito are disturbing him and destroying his concentration. He
says “ Hey Hanuman! Ye macchaar Mera dhyan Bhang Kar Rahe Hain!”
Frame 3:
He says “Inse Chutkara Kaise Payoon?”
He wants to get rid of them as soon as possible.
Frame 4:
He says “Yahaan toh bijlee bhi nahin hain…”
As he is in a jungle, then is no electricity and he has no other option as
he is a Sadhu and doesn’t use chemicals that are harmful to the
environment either.
Frame 5:
He uses our product “FIGHTER” AS IT IS MOBILE AND HERBAL. He gets
rid of the mosquitoes. He is extremely overjoyed and in his excitement
he says “TUSSI GREAT HO FIGHTER”
Frame 6:
He continues meditation peacefully…! Our product is shown on the
screen.
SALES PROMOTION
The three vehicles which we have used for promoting our sales are:
1) DISCOUNT SALES
This is to generate trials. We will have stalls outside about 150 retail
stores including departmental stores, supermarkets in major cities like
Mumbai, Pune, Ahmedabad , Cochin, Panaji, Surat, Vadodra and
Bangalore. The customer buying the product for first time will get a
discount offer. The normal price of our product (machine +refill) is
Rs.67 but the product will be given to him at a price of Rs.60
2) COUPONS
Along with getting our product at a discounted price, the customer also
gets coupons. These coupons will carry a discount scheme where the
customer gets a refill of 45ml (which costs Rs.52) at price of 35ml
worth Rs.42.
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3) MULTIPACKS
A multipack would contain 2 refill bottles of 45 ml and instead of
Rs.104 (price of both) it will actually cost Rs.96.
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3) Herbal Vaporizer: We considered this idea because none of the
major players had a herbal vaporizer and we could replace chemicals
with herbal products being as effective and much safer.
4) Vaporizer which could also be operated with battery: We even
considered this idea because here we could provide an added feature
of the vaporizer being operated with a battery. In small towns where
electricity is not very constant, it could be used. Even on outdoors like
camping it would be very useful.
2) Concept development:
We have made a product-positioning map to see whether our concept
of “a herbal vaporizer” would compete against other alternatives
already existing in market. After studying our positioning map we decided
to come up with a vaporizer which would be economical, effective and herbal.
We also decided to have an additional feature of a battery socket.
This concept was put forward through some of target customers to get
their reactions. And the response we got was good indicating strong
customer appeal towards our product. The following is our product-
positioning map.
3) Marketing strategies:
Once the product was finalized, we designed our marketing strategies
to launch our product, which are elaborated previously.
4) Business analysis:
Once the product was finalized, we had to estimate our costs, project
sales and profits for the future to find out whether the objective of our
company could be achieved or not. This is further understood in the
cost sheet and break-even analysis attached.
COST SHEET
Initial cost of plant: Rs. 20000000/-
1st Year
(all figures in rupees)
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Direct Material 17625600
Direct Labor 3264000
Prime Cost 20889600
Depreciation 2000000
Administration Cost 7833600
Cost of Production 30723200
Advertisement & PR 16972800
Selling & Distribution 15667200
Cost of Sales 63363200
2nd Year
(all figures in rupees)
Direct Material 19388160
Direct Labor 3590400
Prime Cost 22978560
Depreciation 2000000
Administration Cost 8616960
Cost of Production 33595520
Advertisement & PR 17233920
Selling & Distribution 17233920
Cost of Sales 68063360
3rd Year
(all figures in rupees)
Direct Material 22296384
Direct Labor 4128960
Prime Cost 26425344
Depreciation 2000000
Administration Cost 9909504
Cost of Production 38334848
Advertisement & PR 15690048
Selling & Distribution 19819008
Cost of Sales 73843904
Sales Estimation:-
Total Population of target market:- 2414.52 lacs approx.
Assuming only 2% of population approaches us for our product:- 24.14
lacs
Assuming each family to be of 4 members and some families may buy
two or more units of our product and some may not buy so number of
families who approach us for the product:- 12 lacs
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Assuming 40% of families approach us for our refill only and not for
machines then number of machines sold would be 5 lacs appox. and
then some of these families may again buy our products and some
may not and also we can get new customers.
Next, assuming major chunk of population go for 45ml refill then
estimated sale of refills:-
45ml refills:- 360000
35ml refills:- 240000
25 ml refills:- 240000
Revenue Estimation:-
1st Year:-
Estimated Sales: 65280000
Profit (6%) : 3916800
2nd Year:-
Estimated Sales: 71808000
(sales increase by 10% as compared to last year)
Profit (8%) : 5744640
(profit increases by reducing cost on advertisement)
3rd Year:-
Estimated Sales: 82579200
(sales increase by 15% as compared to last year)
Profit (13%) : 10735296
(profit increases by reducing cost on advertisement)
5) PRODUCT DEVELOPMENT:
In order to develop the concept into a physical product and to ensure
that the product idea could be turned into a profitable product we
decide to first produce 2000 units initially of which somewhere around
1500 units will be given to our target customers from all western
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states and remaining units will be given to our employees and their
feedback will be taken.
7)COMMERCIALIZATION:
We have decided to launch our product in first week of May and more
awareness about the product will be created in the month of May to
induce the customers to buy our product. the sole reason to launch the
product in month of May is that the sales of mosquito repellents rise
during monsoon.
BRANDING
LOGO
Our brand logo is a leaf. The leaf portrays the fact that our vaporizer is
herbal. The leaf has the strength to drive away the mosquitoes and
thereby protect you.
BRAND ESSENCE
Core attribute-it is a vaporizer.
Extended attribute-it is a herbal, mobile vaporizer and is effective.
BRAND IDENTITY
Fighter is basically an effective herbal vaporizer. It has an added
feature of being operated with a battery. It aims to identify itself as a
unique product considering it is one of its kind. It will protect your
entire family from mosquitoes.
BRAND PERSONALITY
Our brand personality is a 24 yr old educated woman. For her, her
family and their well being is very important. She loves nature. Likes
adventure and loves traveling outdoors. She likes being one step
ahead and always has a back-up.
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BRANDING STRATEGY
The branding strategy that our company is following is that of product
branding as the company name is not associated with our product
‘Fighter’. It has an independent identity.
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SWOT ANALYSIS
STRENGTHS:
• A herbal product
It is strength of our company as we have the first mover
advantage over an herbal vaporizer and also because
people are shifting their loyalties to herbal products as
they have realized the advantages of using herbal
products.
• Innovative- Battery operated
Our products extra feature, that it can be operated with
battery, making it mobile, is a strength as it provides
convenience to customers.
• Economical
The price of our product is comparatively lower to the
competitors though we provide the same quality.
WEAKNESS:
• It can turn out to be expensive if the vaporizer is extensively
used on battery.
OPPORTUNITY:
• Market is growing at the rate of 21%
As the market is growing at a fairly good rate we have a
great opportunity to capture the market share.
• First Mover advantage-First battery operated herbal vaporizer
We have the first mover advantage over being the first
herbal vaporizer in the industry. Being battery operated
gives us the advantage to attract different customers.
THREATS :
• Supply of raw materials
The raw materials used by us may not be available at all
times keeping in mind the natural calamity that may occur.
• Competition from Existing brands having a large market share
• Increase in competition because of upcoming segments such as
personal sprays and gels.
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FUTURE PLANS
After concurring the western belt and Gujarat we would shift towards
the south eastern belt then towards central India and consequently
towards eastern Indian and finally towards north. Eventually our
product would be available nation wide. We also plan to enter the rural
market. We also plan to diversify into horizontal integration of
mosquito repellent sprays and creams.
Company plans to export its product to countries like Afghanistan,
Bangladesh, etc. ………………..
After making a significant mark in the country we plan to enter into air
freshener market where at present Ambipur is prevalent.
Last but not the least company would like to make its product enter
into the unaided segment i.e., at top of the mind.
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