Marketing Plan for a Product Launch

21
Chitwant Raju Tahalyani Saurabh Mhase Sarang Banubakde Kedar Risbud Digvijay Singh Yadav Dr. Swati Gogawat Varun Balakrishnan

description

 

Transcript of Marketing Plan for a Product Launch

Page 1: Marketing Plan for a Product Launch

Chitwant RajuTahalyani

Saurabh Mhase

SarangBanubakde

Kedar Risbud

Digvijay Singh Yadav

Dr. SwatiGogawat

VarunBalakrishnan

Page 2: Marketing Plan for a Product Launch

INTRODUCTION ITC is an India conglomerate with presence in Tobacco, FMCG, Hotels, Paper-boards, Paper & Packaging, Apparel industries

It forayed into the dairy and beverage industry in 2011

Aahar is the new Health Food Drink being launched by ITCContains all essential nutrients

Substitute and/or additive to milk

Page 3: Marketing Plan for a Product Launch

OBJECTIVESCorporate objectives:

oITC wants to be the leader in the HFD market with special focus on the rural HFD segment.

Consumer retentiono New consumers from rural markets

o New consumers from urban markets

o Existing consumers of existing HFD

Intermediaries retention

Page 4: Marketing Plan for a Product Launch

MARKET ANALYSIS

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 -50

-40

-30

-20

-10

0

10

20

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Annual Production (Tonnes) Change in consumption (%)

Page 5: Marketing Plan for a Product Launch

COMPETITIVE ANALYSIS

Page 6: Marketing Plan for a Product Launch

COMPETITORS AND PRICING

BRAND PRICE

Glaxosmith Kline

- Horlicks Ninja Rs 145@

500gms jar

- Junior Horlicks 123

and 456

Rs 190@

500gms jar

- Lite Horlicks Rs 200@

500gms jar

- Mothers and

Women’s Horlicks

Rs 275@

500gms jar

Boost Rs 142@

500gms jar

Maltova and Viva Rs 164@

100gms jar

BRAND PRICE

Cadbury

Cadbury

Bournvita

143

@500gm

Cadbury

Bournvita 5

star

150

@500gm

Bournvita Lil

Champs

175

@500gm

BRAND PRICE

Heinz

Complan for

Growth

Rs 192

@500gm

(plain)

Rs 218

@500gm

(flavored)

Complan

Memory

Rs 228 @

400 gm

Complan Nutri

Go

Rs 228 @

400 gm

Page 7: Marketing Plan for a Product Launch

MARKETING MIX

Page 8: Marketing Plan for a Product Launch

PRODUCT AAHAR- HEALTH FOOD DRINK

• 27 essential nutrients

• DHA for brain development

• Whey & soy protein

High Nutrition

• Natural/Basic flavour

• Chocolate flavour for tasteFlavour

• Non granular powder based drink and easy solubilityTexture

Page 9: Marketing Plan for a Product Launch

PRICE AND PACKAGING

Features & Advantages• Low Priced product• Approximately 35% discount over purchase of other products existing brand• Attractive packaging

PACKAGING PRICE(RS.)

25 gms (Sachet) 6

200 gms 45

500 gms 90

Page 10: Marketing Plan for a Product Launch

PLACE

URBAN DISTRIBUTION CHANNELS RURAL DISTRIBUTION CHANNELS

Distributors.-Interaction with the downstream channels like

Wholesalers, Retailers, Paanwaalas.

Large Format Rural Retail Stores -

DSCL Haryali Stores

M & M Shubh Labh Stores

TATA / Rallis Kisan Kendras

Escorts Rural Stores

Warna bazaar

3A Bazaar

Wholesalers Local “Kirana” stores in supply chain loop Small Format Rural Retail Stores

Local “Kirana” stores..

Retailers: low end retail chains like Big Bazaar as well as high end

retail chains like Spencers with equal aplomb.

Agricultural Marketing System - Haats (Periodic Markets) - 47000 all

over India.

Wholesale Markets - Governed by APMC Act - 7557 across India

Melas (Exhibitions)

Convenience Stores (Paanwala):

Network of “convenience stores”, its name for the hole-in-the-wall

paan-beedi shops.

e-Chaupal

The Chaupal Saagars along with the Chaupal Centres

Mobile Marketing Vehicles agreements

Companies having existing vehicle infrastructure for distribution. For

example:

BPCL - Rural Marketing Vehicle (RMV)

Page 11: Marketing Plan for a Product Launch

PROMOTION

Rural promotion strategy Low income Urban promotion strategy

1) Promotion in local village schools

Day events

Tie up with health officials to spread awareness

2) Free distribution of promotion sachets

Sachet of 30gm (1 month)

Promotion in community Melas and village Haats

3) Mass media channels advertisements

Regional FM radio channels.

Regional television channels

4) Mobile van marketing

'SAMRAT' and BPCL would also be used.

1) Promotion in regional city schools

Central school .

Leaflets and free sachets

2) Free distribution of promotion sachets

Promotion sachet of 30gm (1 month)

3) Promotion campaigns in selected large retail chains

Reliance Fresh and Big Bazar.

Free cup of Sunfeast Aahar health drink .

Mass media channels

Advertisements

Regional city FM radio channels

Popular national TV channels

Popular women magazines read - Sarita, Wonan’s

Era etc.

Page 12: Marketing Plan for a Product Launch

SEGMENTATION

Segment Consumer Needs/Preferences Key Purchase

Decision Maker

Segment

Share

Competition

Toddlers (2 - 5 years) Nutritional constitution and easy to digest Mothers High Milk

Highly objective and critical analysis by mothers for

nutritional value

Taste is important for kids to accept the drink

Children (7 - 15 years) Nutritional constitution focused on overall growth -

both physical and mental.

Mother with

strong influence

from the child.

Very High Cereals, Non

Carbonated

Drinks, MilkParents' anxiety for physical & academic growth of

the child

Taste is very important attribute for a child in

influencing parents' decision.

Young adults Nourishment needs of adults can be supplemented

through health drinks.

Direct consumer Low Cereals, Tea ,

Coffee, Energy

Drinks

Women Special nutritional needs of pregnant and nursing

mothers.

Nursing mothers

and working

women

Low Cereals, Milk

Health drink consumed by mothers improves the

quality of mother's milk.

Executives/ Elderly/ Sick Should not have fats and have low caloric value Caretakers and

homemakers

Low Cereals, Non

Carbonated

Drinks, Mineral

Water

Caters to nutrition requirements

Page 13: Marketing Plan for a Product Launch

ZONAL SEGMENTATION

90% of sales of health drinks come from the urban market whereas 10% come fromthe rural markets.

None of the current health drink manufacturers are currently strong in the rural market.

The white health drinks are more popular in the South and East regions of the country as

these regions have been traditionally milk deficient.

Almost 85% of the revenues of the white health drinks come from the South and East

regions and remaining from the North and West regions.

Page 14: Marketing Plan for a Product Launch

POSITIONING

High Nutritive value

Low Nutritive value

HighAffordability

LowAffordability

Horlicks Boost

Milo

ComplanBournvita

Aahar

Proteinx

Herbal life

Page 15: Marketing Plan for a Product Launch

TARGETING Targeting rural and urban market. Toddlers having age between 2-5 years Children having age between 7 to 15 years South and East regions of India

Page 16: Marketing Plan for a Product Launch

SALES TARGETS

Areas Market size( in Rs. crores)

1st year 3rd year 5th year

Rural 900 5% 15% 25%

Urban 2100 3% 5% 10%

Total 3000 ------ ------- -------

Sales ------ Rs. 100 crores Rs. 240 crores Rs. 435 crores

Profit ------ Rs. 12 crores Rs. 28.8 crores Rs. 52.20 crores

Page 17: Marketing Plan for a Product Launch

Financial Budgets

In Rs Crores Year 1 Year 2 Year 3 Year 4 Year 5

Sales 100 240 435 567 699

R&D Cost 20 3 5 6 8

Raw materials,

stores and spares

25 55 100 130 160

Labor 10 22 40 51 62

Selling and

distribution

expense

6 12 22 28 35

Ad Expense 150 100 80 80 80

Gross Profit 72 160 290 375 460

Net Profit 12 29 52 68 84

Cumulative

Expense

411 603 850 1145 1490

Cumulative Sales 100 340 775 1342 2041

Break-even

Page 18: Marketing Plan for a Product Launch

DISTRIBUTION CHANNEL

Manufacturing biscuits

Manufacturing unit Atta

Distributor exclusive

Pan Dabbas

Malls

Retailers

Whole sellerSmall

Retailers

Manufacturing cigarettes

Manufacturing food products

Hub

Page 19: Marketing Plan for a Product Launch

INTEGRATED MARKETING COMMUNICATION

Launch in a NEWSPAPER AND MAGAZINES (mostly used by house-holds)- Distributing a sample of Aahar in Magazines.

INTERACTIVE PROMOTION: Name the key Nutritious ingredient present in Aaharwhich helps in brain development? ( this will be mentioned on 200gm-500gm box)

A) DHA B)NaCl c) Sugar D) None of the above

SMS the answers to .....

One lucky winner will get holiday for 2 nights & 3days in one of the 5star ITC HOTEL.

Use of TELEVISION advertisements for promotion part

Advertisement on WHEEL

Page 20: Marketing Plan for a Product Launch

CONTINGENCY PLANS

Anticipated Risk:

Immediate Launch Failure

Long term Failure

Reaction from Competition

Decrease in Income of Consumers

Page 21: Marketing Plan for a Product Launch

T h a n k Y o u

Aahar the Source of Real Energy