istyle _ marketing plan

8/6/2019 iStyle _ Marketing Plan

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2011

iStyle

Launch ofiStyle


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Marketing Plan for iStyle Brand Management

GROUP MEMBERS

Deepika Duggal 02

Rhea Thomas 06

Rahul Nair 07

Edwin James 14

Nita Nasa 32

Subodh More 34

Paul Manjaly 46

Vimal Kumar 53

SIESCOMS, EMBA, 3rd Semester

SIES College of Management Studies (SIESCOMS)

Sri Chandrasekarendra Saraswati Vidyapuram, Plot 1-E, Sector V,

Nerul, Navi Mumbai 400706.

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Table of Contents

1 Executive Summary ................................................................................................................. ...4

2 Introduction .............................................................................................................................. ...5

2.1 Overview and Trends of the Industry ....................................................................................5

2.2 Marketing Mix .......................................................................................................................6

2.3 Brand Elements .....................................................................................................................6

3 Launching of iStyle ........................................................................................................... ........8

4 Segmenting and Positioning .................................................................................................... ...9

5 Financial Projection ..................................................................................................................10

5.1 Financial & Marketing Objective .......................................................................................10

5.2 Head Quarter Plan ................................................................................................... ......... .10

5.3 Forecast Base ......................................................................................................................11

6 Launch Schedule for Year I, II, III ........................................................................................12

6.1 Year I ...................................................................................................................................12

6.2 Year II .......................................................................................................................... .......12

6.3 Year III ................................................................................................................................13

7 Contribution statement for Year I, II, III ..............................................................................14

7.1 Year I ...................................................................................................................................14

7.2 Year II .......................................................................................................................... .......15

7.3 Year III ................................................................................................................................16

8 Contingency Plan .............................................................................................................. ........17

9 Conclusion ..................................................................................................................................17

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1 Executive Summary

iStyle We dont just take care of your eyes, we style them.

As our caption suggests, we are a company that strives towards changing the

perception of people towards eyewear. No more would people consider spectacles as an

accessory for geeks or nerds, and gone is the time when people would fear the insults

attached with owning a pair of spectacles.

Our products are designed to reflect a large part of the user. This way, we are confident

that we can overcome competition and make our mark.

We will be catering to the Upper Middle and Middle Class segment, and will be

opening stores in strategically decided locations. We have selected the major

metropolitan cities to begin with.

Our 3 year Financial & Marketing objective highlights how we intend on expanding

our business over the years.

We are positive that our brand ISTYLE would be the next best thing in unconventional

eye wear.

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Rhea pls work on this


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2 Introduction

Sunglasses or glares are a form of protective eyewear. Firstly, sunglasses are made to

prevent sunshine or other light of high energy. And also they can prevent the harmful

UV rays. Sunglasses can improve visual comfort and visual clarity by protecting the eye

from glare.

Apart from the function of sunglasses, nowadays, more

and more people, especially young people are paying

attention to the appearance of sunglasses. So sunglasses

judgment standards are varying from their function to

appearance. Although it is the fact, many famous

sunglasses such as Versace sunglasses are still paying

more attention to the quality than the appearance of their

sunglasses.

Hence, with iStyle as the slogan itself says We dont just takecare of your eyes, we style themwill change the perception of people towardseyewear.

2.1 Overview and Trends of the Industry

India is a very young nation with 85% of its population below the age of 45, and 55% of

its people below 25 years of age. Young adults, the group between 18 and 35 years,

represent nearly 25% of the consumer base in the country, and drive consumer and

lifestyle trends.

The demand is driven by demographics, fashion, and changing healthcare practices.

Aging population is increasing the demand for eye exams and glasses. Eye care has

evolved from age-related vision disorders to cosmetic concerns. Spectacles are

nowadays considered as personality enhancers and a fashion accessory.

In 2007, the prescription eyewear market in India was estimated to be worth Rs. 23

billion. India is predominately a glass lenses market (87% of total market) with sales of

approximately 115 million pieces per year.

The sunglasses market, growing steadily in the last five years, is further segmented byprice. The mid-priced segment (Rs. 700 to Rs. 2000) accounts for almost half of the

market, whereas high end and premium sunglasses account for 20% and 10% of the

market. The high and premium segments are growing faster than the rate of overall

market growth.

This segment is largely dominated by the unorganized sector, which accounted for 95%

of the prescription eyewear business. There is also a huge parallel market in unbranded

imported eyewear. This includes products that are mainly imported from the China, and

are available in the unorganized market at very low prices ranging from USD 2 to USD

10. These are mainly ophthalmic spectacles and usually feature low-quality plastic

lenses. A large variety of unbranded sunglasses are also available in this segment.

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Our exciting future will make iStyle the workplace of choice in attracting people thatwill drive change, be creative and innovative and be relentless in our pursuit of

Customer delight and Employee satisfaction.

2.2 Marketing Mix

Product:

Currently this will be a single variant product available in 3 colors (Silver, Gold

and Black). Features will be standard across all the colors.

For the GPRS Service, users can choose their telecom provider of choice.

Price

The NRV will be Rs.11,850 for all color options. MRP will be Rs.15,000.

Place

Initially, the product will be made available through all the leading electronics

showrooms in the Major metros.

We will also provide this through direct sales to the Police Force.

Promotion

Promotion will be through the following means:

TV Spots on a maximum of 5 channels with 1 spot per week

Print

Four Newspapers and twice a week

Four Magazines and once a fortnight

50 Billboards across the Major metros

Event Sponsorship (1 event per quarter)

150 Danglers

100 Posters

Gondolas at 10 Electronics Shops

2.3 Brand Elements

Character The Character who can be best identified with this Product is Tom Cruise.

Slogan We dont just take care of your eyes, we style them

Logo The logo depicts i for the individualand style for the individual

personality.

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iStyl



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3 Launching of iStyleCost per Unit (in Rs.)

Glass 250

Nose Pad 20

Ear Rubber 30

Frame 100

Paint (Frame) 20

Casing 50

Warranty and Description Materials 10

Assembly & Manufacturing Cost 200

Final Cost per Unit 680

Margin

Our Margin 30%

Net Realization Value Rs. 972/-

Price to Retailer with 20% Margin Rs. 1215/-

Maximum Retail Price with 10% Margin Rs. 1350/-

Yearly Projection

Customer Classification Socio Economic Class A (Sec A)

Units Per store 30 (It varies depending on the season)

Annual Projection for 1st year 16400 units

Annual Projection for 2nd year 26600 units (i.e. growth by approx. 62%)

Annual Projection for 3rd year 27950 units (i.e. growth by approx. 30%)

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4 Segmenting and Positioning

Target Segment: Age group of 18 to 35 years. (College Students &

Young working executives)

Positioning: Protect our eyes with iStyle

Communication: Style Your Eyes With iStyle

Positioning Statement

AtiStyle our mission is simple - to deliver you the highest quality eye care productsat the lowest prices. We want to become your natural choice for eye care products andestablish long term trustworthy relationships with our customers. When you want

fast, friendly service and great prices, we want you to think ofiStyle. Value for moneyand Customer delight in terms of our Products and Services are the primary driver for allour team

Our Purpose

To make every experience you have with iStyle memorable, convenient and affordable. Weare committed to ensuring that you'll enjoy every aspect of our service so much that you'llwant to return and share your experience with others

Our Values

These values underpin our business and are core to the ongoing development of ourcompany. We hold these values true as they form the foundation of our work culture andethics.

Respect and appreciate all of our team members as well as our customers

The pursuit of excellence and innovation

Honesty and integrity are essential to our success

Our Vision

iStyle will be the premier retailer of optical products. The value of our service and thereach of the internet will continue to allow us to touch a large and varied audience. Wewill work to inspire this audience and rapidly grow our market share and inspire our

customers to continually return to iStyle and to introduce their friends and colleagues toour products and high level of service and customer care

Our Goal

To be the market leader and innovator within the optical market by offering authenticproducts, professional and friendly service at great value creating Customer delight andloyalty

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5 Financial Projection

Year Cost of Goods Revenue Profitability

1

st

Rs.11158560/- Rs. 15940800/- Rs. 4782240/-

2nd Rs.18098640/- Rs.25855200/- Rs.7756560/-

3rd Rs.19017180/- Rs.27167400/- Rs.8150220/-

5.1 Financial & Marketing Objective

Year Financial Objective (Units) MARKETING Objective

(Market Size = Approx Rs. 100

Crores)

1st year 16400 1.59%

2nd year 26600 2.58%

3rd YEAR 27950 2.71%

5.2 Head Quarter Plan

HQ Launch Retailer Distributors ISR ASM

Mumbai Feb-11 10

1

2

1

Pune Apr-11 5 0

Delhi Feb-11 10

1

2

1

Kolkata Mar-11 5 1

Chennai Mar-11 10

1

2

1

Bangalore Apr-11 5 0

Total 45 3 7 3

ISR = Interim sales distributor for sales representative.

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5.3 Forecast Base

The Initial availability plank

No. ofDistributors

Avg. Outlets per

distributor15

1

SEC Class A 15

A Class

CoverageUnits per

storePTS

Total

PTS

15 30 29160.00 437400

29160.00 437400

Products MRP PTR PTS

iStyle 1350 1215.00 972.00

Total

Value Qty

1350 450

1350

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6 Launch Schedule for Year I, II, III

6.1 Year I

NRV

972.00 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 FY 11-12

Units 600 1100 1700 2000 1750 1150 1100 1100 1250 1550 1550 1550 1700

Valu e INR 583200106920

0

165240

0

194400

0

170100

0

111780

0

106920

0

106920

0

121500

0

150660

0

150660

0

150660

01652400

No. of

retail

shop

Mumbai 10 300 300 400 400 250 200 200 200 300 300 300 300 3450

Delhi 10 300 300 300 400 400 250 250 250 300 300 300 300 3650

Pune 5 200 300 200 150 150 150 150 150 150 150 1750

Bangalore 5 300 300 300 150 150 150 150 300 300 300 2400

Chennai 10 300 300 400 400 200 200 200 200 300 300 300 3100

Kolkata 5 200 200 200 200 200 150 150 150 200 200 200 2050

600 1100 1700 2000 1750 1150 1100 1100 1250 1550 1550 1550 16400

VALUE AT NRV = 15940800

SALES: 30 UNITS PER STORE

6.2 Year II

NRV


Units 2250 2400 3300 3300 2500 1850 1800 1800 2100 2350 2350 2350 4650

Valu e INR 2187000233280

0

320760

0

320760

0

243000

0

179820

0

174960

0

174960

02041200

228420

0

228420

0

228420

04519800

No.

of

retail

shop

Mumbai 10 500 550 750 750 600 400 400 400 450 500 500 500 6300

Delhi 10 500 550 750 750 600 400 400 400 450 500 500 500 6300

Pune 5 250 250 350 350 250 200 200 200 250 250 250 250 2550

Bangalore 5 250 250 350 350 250 200 200 200 250 350 350 350 2850

Chennai 10 500 550 750 750 550 400 400 400 450 500 500 500 5750

Kolkata 5 250 250 350 350 250 250 200 200 250 250 250 250 2850

2250 2400 3300 3300 2500 1850 1800 1800 2100 2350 2350 2350 26600


SALES INCREASED TO 50 UNITS PER STORE

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6.3 Year III

NRV


Units 2475 2725 3300 3300 2750 1875 1800 1800 2475 2525 2525 2525 5200

Value INR240570

0

264870

0

320760

0

320760

0

267300

0

182250

0

174960

0

174960

0

240570

0

245430

0

245430

0

245430

05054400

No.

of

retail

shop

Mumbai 10 550 550 650 650 600 400 400 400 550 550 550 550 6400

Delhi 10 550 600 650 650 600 400 400 400 550 550 550 550 6450

Pune 5 275 375 450 450 275 200 200 200 275 275 275 275 2875

Bangalore 5 275 375 450 450 275 200 200 200 275 325 325 325 3025

Chennai 10 550 550 650 650 600 400 400 400 550 550 550 550 5850

Kolkata 5 275 275 450 450 400 275 200 200 275 275 275 275 3350

2475 2725 3300 3300 2750 1875 1800 1800 2475 2525 2525 2525 27950


SALES INCREASED TO 55 UNITS PER STORE

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7 Contribution statement for Year I, II, III

7.1 Year I

Planned Launch Date: February-11

No. of Sales Executives: 45

Total Cost Rs.

Maximum Retail Price 1350.00

PTR 1215.00

Net Realization Value 972.00

Cost Of Goods 680.40

iStyle Sales

Sales (Units) 16400

Sales (Value) 15940800

LESS: Cost of Goods 11158560

A] Contribution I 4782240

B] Marketing Variable

ExpenseRate

Units /

store /

Qtr

Quantity Amount Explanations

Danglers 3.00 10 900 2700

Posters 1.50 10 900 1350

Gifts 2000.00 1 45 90000

Trade Schemes 5% 199260 only on 25% of the stock

Consumer Offers /

Promotion10% 398520

only on 25% of the stock (DURING

RAINY SEASON)

Transportation charges 20000 Yearly throughout the country

Product catalogues 370 12 540 200000Including photographer, aspiringmodels, studio rent, catalogue printing

Website 20000

C] Total Marketing

Variable Expense931830

Expenses as % to Sales 5.85

D] Contribution after

marketing Expense3850410

Contribution to Sales

(%)24.15

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7.2 Year II



Total Cost Rs.


PTR 1215.00



iStyle Sales

Sales (Units) 26600





ExpenseRate

Units /

store /

Qtr


Danglers 3.00 10 900 2700

Posters 1.50 10 900 1350

Gifts 2000.00 1 45 90000


Consumer Offers /

Promotion10% 646380 only on 25% of the stock

Transportation charges 20000


Website 5000

C] Total Marketing






(%)25.02

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7.3 Year III



Total Cost Rs.


PTR 1215.00



iStyle Sales

Sales (Units) 27950





ExpenseRate

Units /

store /

Qtr


Danglers 3.00 10 900 2700

Posters 1.50 10 900 1350

Gifts 2000.00 1 45 90000


Consumer Offers /

Promotion10% 679185 only on 25% of the stock

Transportation charges 20000


Website 5000

C] Total Marketing






(%)25.08

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8 Contingency Plan

10% of profit every year to be retained for back up

9 Conclusion

Considering that India has the worlds second largest population, of which nearly one-

third require some form of eye-sight correction, India represents a huge market

opportunity in the optical sector. However, the market is extremely fragmented,

complex, price sensitive, diverse and distribution driven.

Most consumers are ignorant about quality, brands, country of origin of product etc.,

and are largely guided by the opticians and of course the price. Hence, it is very

important to educate and train the trade.

Key market characteristics:

India is a highly price sensitive market though demand for premium / branded

goods is rapidly increasing, at a faster rate vis--vis the overall market

Mid price segment is most promising, with large volumes and decent margins

Low end segment has high inspirational value and would like to move up the

value chain

Medium and small sized cities are fast emerging has high potential markets for

life style products

Market segmentation and positioning is important as the expectations and paying

capacities differ across consumer segments in India. Therefore, new entrants should

preferably offer different products/brands for different segments giving value for price.

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istyle _ marketing plan

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