smilling assassins welingkar institute of management mumbai
TRANSCRIPT
• Fresco is the Global Leader in the Air Cooler Market with 35% market share and boasts of an Innovative & wide product portfolio.
• India contributes 10% of the total business, but profit margins remain low at 5-‐9% due to saturation and high degree of competitiveness
• Fresco has developed a new offering in the form of Standing Coolers.
• Fresco faces the risk of rising popularity of Air Conditioners and from companies like Pure4U with advanced products like 3-‐way Coolers, which have a growth to the tune of 150%
EXECUTIVE SUMMARY
Target Markets • There are 1829 air cooler manufacturers in India and 2814 in China.
• In India, the total market size of air-‐cooler industry is estimated to be around Rs. 2500-‐3000 crores.
• Currently, the Indian air-‐cooler industry is growing at a strong 30 per cent rate per annum.
• Symphony Limited is the world leader in air-‐cooler industry with a strong presence in over 60 countries.
• North India is a key market and demand is whopping.
• Me consumption -‐ Chinese are starting to value individualism and are getting brand conscious due to it. • Eco-‐ friendly -‐ 58.5% of respondents stated that they would be willing to change their lifestyle to protect the environment.
• Tech 360 degree-‐Changes in lifestyles today make people more dependent on science and technology. Individuals have around them a battery of hi-‐tech products . • Free Free??-‐ Barters ,discounts
Trends in China
• Temperatures across northern
India hover around 115 degrees straining power grids and causing sporadic outages in New Delhi & states of Uttar Pradesh, Rajasthan and Haryana.
• Last summer Delhi state government instructed government offices to turn off air conditioners during peak hours
• Our strategy involves a revolutionary new product which consumes less power and provides relief during power outages.
• Rather than developing a new division which will work on innovation of rechargeable air cooler
• The company we recommend to acquire is the cooler brand of Sogo
• Sogo is the leader in innovation of rechargeable air coolers
• By doing so we get the pioneering technology and the intellectual capabilities of the brand
• Presently Sogo rechargeable works for 4-‐5 hours
• But with our R & D inputs we plan to increase the timings to 7-‐8 hours.
• It works like a normal air cooler when power supply is there
Rechargeable air Cooler
Acquisition
STRATEGY-‐1
Introducing products that are customized,eco-‐friendly
and also adding smart air coolers
Establishing supply chain and factories
Heavy promo<on and branding
Enter Chinese market with an JV with Chinese company Tik
4 YEARS PLAN
1st Year 2nd Year 3rd Year 4th year
1-‐2 months before launch
1-‐2 weeks before the launch
On launch day
1-‐2 weeks after launch
Teaser Campaign
Preparatory Campaign
Launch Activity Post Launch
• Viral advertisements
• Wall Paintings in rural areas
• Distributing hand-‐bands with Fresco logo on it
• Placing the fans in tele-‐series like Comedy nights and Dia baki • Advertisements in mobile apps and games • Advertisements in local bus stops • Launch a “Spot the brand mascot” contest
• Press conference to launch the new range of air coolers • Launch a creative writing contest on social media • A full page ad in all leading national newspaper
• Repetitive television advertising • Ads on radio and billboards • Use panchayats heads to communicate the benefit of the product in rural areas
Activities
Outcom
es • Create an excitement among
people • Number of hits on company website
• Should become a part of prospective customer’s conversation • Should start receiving enquiries for the air coolers
• Point of Sale display at dealer end • Brand awareness among people should increase
• Increase in footfall in the stores • Increased sales • Number of people who visit the company website should increase
1-‐2 months after launch
• Continue with Television advertising • Interactive Hoardings • Dedicated presence on f and Twitter • Undertake cross promotions with other related products
Sustenance
• C o m p e t i t o r reaction • C u s t o m e r
feedback in terms of mail, blogs, etc.
• Press response to launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
ADVERTISING /PROMOTION PLAN FOR STANDING AIR COOLERS
% Disp.
Genre 20s SpotsSpends in INR
Lakhsof Inv.
GEC 167 68 34H Movies 244 19 9H News 534 20 10News 486 11 5NE 70 1 1Oriya 17 1 0Bihar 147 3 1Mah 299 6 3PHCHP 324 3 1MP-Cht 178 1 0WB 192 15 7AP 276 15 7Kar 121 9 4Ker 177 10 5TN 152 13 6DD 19 8 4
Total 3402.5 202 100
TV
Total-‐ 2.2 crores
Station No of City No of SpotsSpend in INR
Lakhs
Radio Mirchi 34 100 18Big FM 45 100 12Red FM 93.5 48 100 16Mantra 8 100 1.9Radio City 22 100 9Oye FM 7 100 1.7O'Lala 1 100 0.7Radio Mango 4 100 1.6Radio Club 4 100 1.8Vividh Bharthi 5 100 2Primary Channel 9 50 3.6MY FM 94.3 14 100 5Fever FM 4 100 3.3Friends FM 1 100 1.4Hello FM 7 100 2.2Total 80
RADIO
Total-‐ 0.8 crores
ADVERTISING BUGDET
Ac<vity Deliverables
Facebook • Cover Photo – 3 revisions • Daily Updates – 2 nos • Profile Picture – 1 nos • Facebook Timeline Development • Upto 15 creaDves to be made from scratch on the account
TwiFer • Profile Skinning and revisions – 3 nos • Daily Tweets – 2 nos • ProacDve, ReacDve replies and revisions • TwiKer Tab on Facebook (inclusive)
DIGITAL
Total-‐ 2.0*12 = 24lakhs + 10 lakhs promotion+gifts= .34
Sr. No City No of towns No. Of Units Sq. Ft. No. of Days Total INR Lakhs1 Maharashtra 53 91 41379 120 762 Punjab 30 75 8046 120 353 Karnataka 26 48 35496 120 534 Himachal Pradesh 11 11 2574 120 95 Gujarat 53 84 21750 120 456 Rajasthan 27 35 9624 120 217 Madhya Pradesh 52 70 14000 120 228 Chhattisgarh 13 16 4940 120 79 Bihar 33 33 6600 120 710 Jharkhand 18 21 5850 120 911 Orissa 29 29 6600 120 1212 UPE 56 70 23950 120 5013 UPW 24 26 5200 120 1114 Kerala 14 18 13590 120 2115 Tamil Nadu 27 35 16234 120 3816 Pondycherry 1 4 2129 120 617 Haryana 23 24 6038 120 2718 J&K 4 5 1000 120 919 Assam 23 24 8100 120 1820 Nagaland 2 2 400 120 121 Meghalaya 1 1 200 120 022 Mizoram 1 1 300 120 123 Manipur 1 1 200 120 024 Tripura 5 5 1160 120 325 Arunachal Pradesh 2 2 400 120 126 West Bengal 22 31 13480 120 2427 Uttranchal 14 28 5600 120 1028 Andhra Pradesh 34 44 24425 120 33
Total 599 834 279265 549
OOH
Total-‐ 2.8 crores
The selling expenses of FRESCO have been falling to virtually no selling expense in 2012
For the same year, the proportion of selling expenses of Symphony was 7.8% of its sales turnover
To support the suggested ATL and BTL marketing we suggest 3% of current sales turnover each year to be spent as Selling expenses
Ø Marketing expenditure= 3% of 161.12 crore= 4.8336 crore each year Ø For Five years= 19.33 crore Ø Expected Sales turnover in 2017= 251.74 Ø Return on Investment: 2.26 times
IMPACT OF SALES