Birla Institute of Technology & Science,

Pilani (Rajasthan)

Experiential Learning- Report

(MARKETING MANAGEMENT-MBA ZC411)

Submitted By:

SI. No. Student Name Student ID Program Name

2016hb58527@wilp.bits- MBA- Consultancy
1 KUMAR KRISHNA
pilani.ac.in Management

Kumar Krishna k.krshn@gmail.com

Contents

1. Introduction .......................................................................................................................... 3
2. Market Research ................................................................................................................... 3
2.1 Situation Analysis ............................................................................................................ 3
2.2 Market Summary ............................................................................................................ 4
2.3 Competition Analysis ...................................................................................................... 4
2.4 SWOT Analysis ................................................................................................................ 4
3. Brand Name, Mantra and Logo ............................................................................................ 5
4. Brand Position....................................................................................................................... 6
5. POP and POD ........................................................................................................................ 6
6. Marketing Strategy ............................................................................................................... 7
7. Marketing Positioning ........................................................................................................... 8
8. Marketing Communications ............................................................................................... 10
9. Marketing Mix..................................................................................................................... 11

Kumar Krishna k.krshn@gmail.com

1. Introduction

SKN Corp is a detergent manufacturing company in Maharashtra, India. It is

into detergent manufacturing for last 30 years with a good penetration in
Maharashtra. The company has a turnover of 300 Crore.

2. Market Research

2.1 Situation Analysis

SKN Corp wants to diversify its business and want to launch liquid floor
cleaning product in Maharashtra.

Current market size of liquid floor cleaning product is Rs.4500 crore and is
growing at a rate of 23% CAGR. SKN Corp must carefully target specific
segments with quality product and create a new brand in this segment.

Demographics of Maharashtra:

Population: 12 Crore, 16% of India’s population.

GDP: Rs. 1700000 Crore, 24% of India’s GDP It is richest state as per GDP.

45% of population is urban 61% of total working population is in service

sector.

Semi urban & Rural people are now using tiles, marbles, granite etc. in floor.

Liquid Floor Cleaning product classification-

Cleaning Hygiene Market

Type Price Usage Area
capacity level Share

Urban/ Semi
High Good Good
Clear Urban 30%
Urban/ Semi
Medium Ok Good
White Urban 40%
Semi Urban /
Medium Ok Bad
Black Rural 30%

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2.2 Market Summary

SKN Corp market consists of consumers in urban, semi urban & rural areas of
Maharashtra. Its existing products are of good quality at a very reasonable price. The
company wants to go with same strategy with its new offering of liquid floor cleaner –
Named “SUPER CLEAN”

Targeted Segment

Income Group
Upper Middle
Middle Middle
Lower Middle

Institutions
Educational Institutes
Hospitals
Offices
Shopping Malls
Restaurants & Eateries

2.3 Competition Analysis

Packaging Price (1000

Brand Fragrance Organic
500 ml 1000ml 2000 ml 5000 ml ml) in Rs.
Lizol Good No Yes Yes Yes No 140
Domex Good No Yes Yes No No 135
Mr. Muscle Good No Yes Yes No No 140
Regional
ok No No Yes No No 80
Brands
Super Clean Good Yes No Yes No Yes 90

2.4 SWOT Analysis

Strengths:

1.Innovative product: Excellent cleaning properties with good fragrance made

from organic materials.

2. Pricing: Super Clean is priced lower than competing products which will
give an edge with price-conscious customers

3. Distribution Channel: SKN Corp has a very strong distribution channel

which will be used to reach customers

Weakness:

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 Lack of brand awareness: Super Clean is a new brand while Lizol, Domex and
others have strong brand recognition. Aggressive promotions will address this
issue.

Opportunities:

1. Increasing demand: The demand for liquid floor cleaner is increasing at a

very healthy rate.

2. Production Cost: SKN Corp will use its existing production facilities to
manufacture Super Clean.

3. Distribution Cost: SKN Corp will use its existing distribution facilities to
manufacture Super Clean.

Threats:

1. Increased competition: More companies are getting into this segment.

2. Technology: Inventions of Autoboots cleaners with decrease in their price

due to technological enhancement.

3. Brand Name, Mantra and Logo

Brand Name:

The brand name should correlate with the product. Our product is a cleaning agent
therefore, the brand name “SUPER CLEAN” justifies it.

Brand elements choice criteria-

 Memorable
 Meaningful
 Likable
 Transferable
 Acceptable
 Protectable

“SUPER CLEAN” is Memorable, Meaningful, Likable and Acceptable.

Brand Mantra:
Brand Mantra is a three to five words articulation of the heart and soul of the
brand and is closely related to “Brand Essence” and “Core Brand Promise”.
Super Clean is a floor cleaning product which is organic with no chemicals and

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 leaves floor germ free with goodness of fragrance without compromising
quality of floor and health of humans.

“Clean Bhi Healthy Bhi”

Brand Logo:
Brand
rand Logo is a visual representation of the product it stands for. It enhances
potential customers and distributors, retailers’ first impression of the product.
A good logo can build brand loyalty, establish a brand identity and provide
professional look.

We used simple colors like green and leaves represent organic product.

4. Brand Position

Positioning is the act of designing a company’s offering and image to occupy a

distinctive place in minds of the target customers. The idea is to locate the
brand in the minds of customers to maximize the potential benefit to the
company.

It requires marke
marketers
ters define and communicate similarities and differences
between their brand and its competitors specifically deciding on a position
requires:

1. Determining frame of reference by identifying target market & relevance

competition

2. Identifying the optimal POP and POD

3. Creating brand mantra to summarize the positioning and essence of the

brand

5. POP and POD

Identifying potential points of difference and points of parity helps us in

crafting the brand position.

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 Point of Differentiation:

These are the attributes or benefits that consumers strongly associate with a
brand, positively evaluate and believe they could not find to the same extent
with the competitive brand.

1. Desirability: Super clean product looks desirable as it is organic and the

price is also low when compared to other competitors.

2. Deliverable: Company has internal resources and commitment to feasibly

and profitable create and maintain the brand association in the minds of
consumers.

3. Differentiating from competitors: Super clean is organic which most of the

competitors do not have it in their product. This is the differentiating factor.

Point of Parity:

The benefit associations that are not necessarily unique in the brand but may
in fact be shared with the other brands.

1. Category Point of Parity: Super clean is essential to a legitimate and

credible offering within the product category.

2. Correlational Point of Parity: Super clean is Organic and is inexpensive.

3. Competitive Point of Parity: When compared to other competitor

products, super clean has better hygiene percentage. So, customer preference
will be high.

6. Marketing Strategy

Objectives:

The goals that are set by us after meetings and rigorous discussions analyzing
the current market for the floor cleaning product might sound aggressive but
are achievable for the first and second years of market entry.

First Year Objective:

We are aiming to sell 2,40,000 liter of Super Clean particularly in Maharashtra

by the end of the year.

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 Second Year Objective:

To establish a strong market position competing with big game players such
Lizol and Domex overall India.

Target Markets:

SKN corporation will be launching its product based on positioning of product

differentiation and its aggressive pricing strategy. Our primary consumer
target for Super Clean floor cleaner is Middle Income Group:

1. Upper Middle
2. Middle Middle
3. Lower Middle

Our Secondary consumer target is schools, colleges, hospitals, clinics,

Shopping Malls, Commercial buildings, Theaters/Cinema Halls, Hotels,
Restaurants.

7. Marketing Positioning

We are positioning the Super Clean Floor Cleaner as the most versatile,
organic and super hygienic floor cleaner disinfects with a burst of fragrance
safeguarding your family from germs including bacteria, virus and fungi at a
super affordable price to reach and make the product available from upper
class to lower class families in cities, smaller towns, and rural areas
collaborating with “Swach-Bharat Abhiyan Campaign” - that seeks to create a
Clean India.

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Strategies:

Product:

The Super Cleaner with each of its versatile features described in the earlier
section and more, will be sold in an attractive container and product labels
with the product description and its usage to give a premium experience to
the customers. The brand and logo will be displayed on our packaging as well
as in marketing campaigns. The quality of the super cleaner will be compatible
and better than the popular products such as Domex and Lizol which are too
expensive compare to our product.

Pricing:
The Super Cleaner will be introduced at Rs. 65.00 distributor price and at Rs.
90.00 estimated retail price per liter. We can clearly see that the product has
been priced aggressively lower than the product sold by current players in the
market.

Our primary aim to make the Floor cleaner available to the customers at
cheaper rate and grab the market share as much as we can at initial stage.
Secondary aim is to replace the black and white phenyl used by lower middle-
class people with our Super Cleaner in the market as the pricing is done
keeping in mind the pricing of Black/White phenyl too.

We expect to attract a huge crowd and retailers, wholesale distributors as

customers/end user is going to get a premium quality floor cleaner at the
price of regional/local floor cleaner and at the cost of black/white phenyl.

Distribution:
Our distribution and channel strategy would be to use selective distribution,
marketing Super Cleaner through well-known stores, online retailers, door to

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 door Sales and marketing, distributing free samples at malls and live demo to
make the product famous and popular in the local market establishing pillars
for distribution channels.

We can also have scheme of full refund incase a customer feels unsatisfied on
usage of our product.

We can have channel partners until we have coverage over the whole
Maharashtra state. In support with channel partners, we will provide
demonstrations products, detailed specification handouts, and full-color
photos and displays featuring the product. We can have small advertisements
in regional newspapers and can take help of radio podcast for advertisement
purpose.

Finally, we can set and arrange a plan for special payment terms and methods
for retailers that place volume orders.

8. Marketing Communications

By integrating all information and messages in all media, we will reinforce the
brand name and the main points if differentiation. Research about
consumption pattern will help our advertising agency choose appropriate
media and timing to reach prospects before and during product introduction.

Next step would be to advertisement on pulsing basis to maintain brand

awareness and communicate various differentiation messages. The agency
will also coordinate public relations efforts to build the Super Cleaner brand
and support the various differentiation messages.

To generate the buzz about the product in the market, we will host a user
generated video contest on website. To attract, retain and motivate channel
partners for a push strategy, we will use trade sales promotions and personal
selling. Until the Super Cleaner has been established, our communications will
encourage purchases through channel partners rather than from our Web
site.

We held small scale product campaigns in shopping malls as well as we can

host a small even/ a launch program where we will invite few dignitaries from
media, politics as well as our retailers. Inviting media reporters, reporters of
famous local new papers will add cherry on the top of the cake as we can
have a free publicity on televisions and in newspapers.

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9. Marketing Mix

The Super Cleaner will be introduced in February. Here are summaries of

action programs we will use during the first six months to achieve our stated
objectives:

January: We will launch a trade sales promotion campaigns in different parts

of Maharashtra and participate in major industry trade shows to educate
people, dealers and generate channel support for the product launch. Also,
we will create a buzz by distributing free samples of our product in public
places and providing samples to selected product reviewers, opinion leaders,
influential bloggers, and celebrities. Our training staff will work with retail
sales personnel at major chains to explain the Super Cleaner features, benefits
and advantages.

February: An integrated print/radio/internet/social media campaigns

targeting dealers and consumers will be started. Campaign how many
functions the Super Cleaner can perform at a time. This multimedia campaign
will be supported by point-of-sale signage as well as online-only ads and video
tours.

March: Further in continuation with multi-media campaign, we will add

consumer sales promotions such as contest in which post videos to our
Website, showing how they use the Super Cleaner and its usage at various
levels with satisfactory results.

April: We will hold a trade sales contest offering prizes for the salesperson
and retail organization that seal the most Super Cleaner during the four-week
period.

May:To ground pillars for establishing at national levels step by step, we can
plan to roll out a new national advertising campaign this month collaborating
with Swach Bharat Abhiyan. The radio add will feature celebrity voices telling
the advantages of using Super Cleaner. The stylized print and online ads will
feature avatars of these celebrities holding the Super Cleaner bottles. We plan
to repeat this theme for next year’s product promotion at national level.

June: At this point we will try to overcome the market competitors by

providing retailers with new comparison handouts as a sales aid. In addition,
we will analyze the results of customer satisfaction research for use in future
campaigns and product development efforts. We will start taking feedbacks
from the consumers about the product experience and results.

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10. Financials

Per liter cost In Rs.

Raw Material cost 20
Production cost 2
Packaging cost 14
Total Manufacturing Cost 36
GST @18% 42.48
Distribution Cost 2
Cost of Capital 3
Marketing Cost 5
Total Landing cost at Distributor 52.48

Per liter Price In Rs.

Distributor price 65
Retailer Price 75
MRP 90

Gross income per liter 12.52

Company aims to sell 20000 liter per month

Expected Gross Income per annum: Rs. 30,04,800

11. Control

SKN Corp will have weekly, monthly, quarterly and yearly report focusing on:

1. Sales & Revenue

2. Expenses

3. Customer Feedback

4. Market

12. Conclusion

SKN Corp is a established company but Super Clean is a new product in the market
and the brand in unknown to the customers but we hope we will establish this brand
by providing best quality at affordable price creating strong brand loyalty among our

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customer. We believe that consumers will prefer Super Clean to existing brands and
will also switch from traditional Black phenyl, White phenyl and Detergent to our
superior product after comparing the benefits.

Offering sustainable value for customers and the community as a whole, SKN Corp
is committed to improving the lives of the people both through their products and
through the various corporate social responsibility initiatives undertaken within the
community.

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