ENTREPRENEURSHIPCASE STUDY:

BLITZ SUNTAN LOTION

Presented by:MANISH SARANNEHA DHINGRAGAYATRI MISRA

UNIQUENESS OF PRODUCT

Different SPF for different skin type

Dual-chamber dispensing bottle

Concept- “YOUTH” & “FUN”

Independent shops to sell

RESOURCESHUMAN RESOURCES

Ready for innovationUnique vision, drive, creativity, intelligence

REPUTATIONAL RESOURCESConcentration on young & active

ORGANIZATIONAL RESOURCESFast & responsive decision makingZeal to make it a success

SHORT-TERM OBJECTIVE

Creating optimal product

Packaging & advertising

Screening & tests

Sales & distribution challenge

LONG-TERM OBJECTIVE

I Year - 1% SHARE OF TOTAL MARKET (EARNING-$779007)

IV YEAR- 2.5% OF MARKET SHARE (EARNING-$2.8 MILLION)

ADD-ON GOAL- TO EXPLOIT HIGH BRAND NAME

Market AnalysisTotal Retail SunCare Market

$0

$100

$200

$300

$400

$500

$600

$700

1991 1992 1993 1994 1995

(Year)

$ (

in m

illio

ns)

1994 Retail Market Share

Schering Plough, 33%

Banana Boat, 11%

Hawaiian Tropic, 10%

Others, 31%

Vaseline IC, 6%Bain de Soleil, 9%

Target Market 15- 34 Highly active lifestyle College students 38% of this segment TM : 28.9 million users

Population Trends by Age Groups

0

5

10

15

20

25

1994 1999 2005(Year)

(mil

lio

n)

15-19

20-24

25-29

30-34

64 % - “Good tan without burning” 38% - Complete protection UV rays 100% females & 43% males - Small packaging 80% females & 29% males – Interest in duel chamber bottle

Competitive Factors Create a superior formulation

“me-too” at a lower price

Unique looking

Industry analysisRetailers interest in sun care products

1. It offers high margins

2.Stocking of products in non- summer months

3.Advertising earlier in the season

Rivalry among firms

High-end cosmetics sold in departments and drugstores

National brands sold in national chain drug and supermarket stores

Small brand sold in surf shops, beach, ski resorts and local convenience stores

Government regulations

No SPFs greater than 30Sunscreens to carry a static and water

resistant SPFSun alert warning must be statedInhibit exposure from UV raysSPF to be regulated as a drug

Resource requirements

Laboratory to research and develop new formulas and sunscreens

Factory to produce the sunscreenTrained scientist to invest and test few

new sunscreensManagers to start, refine and monitor

production processEmployees to work

Marketing strategy

PackagingAdvertisingPromotions and sponsorshipsPricing strategyDistribution

Production process

Zuma design bottle label

Zuma design bottle label

Subcontractormakes label

Subcontractormakes label

2nd Subcontractormakes label

2nd Subcontractormakes label

Assembling Assembling

3rd Subcontractormakes label

3rd Subcontractormakes label

Contract fillermakes lotion

Contract fillermakes lotion

Bottles arriveIn Zuma warehouse

Bottles arriveIn Zuma warehouse

Distributors sell bottle

Distributors sell bottle

Retailers Sell bottle

Retailers Sell bottle

Brokers sellbottles

Brokers sellbottles

HRM Strategy

Marketer

Distributor

Manufacturer Relations

Financial Controller

Performance measurer

BUSINESS FORMLimited Liability Corporation (LLC)

Maximum 35 owners

No foreign owners

Corporate profit to owners as dividends

No double tax

EQUITY POSITION

100000 shares

Founders~ 20000 shares each

Investors~ remaining 20000

I FounderII FounderIII FounderIV FounderInvestors

Conclusion

Gives options to consumers

Convenience

Match with consumer’s lifestyle

Minimize costs by subcontracting

Specialized network

Analysis

Consumers show interest in the product as it has a dual feature.

Everything is deeply analyzed , there are rare chances of failure of the product

Patent to capture the uniqueness

CRITICAL RISKS

Management is unproven

No patent protection

Difficulty raising additional funds

Failure to meet production deadlines

“AS LONG AS THE SUN KEEPS SHINING,

BLITZ IS SURE TO BE A WINNER”