Marketing Plan for a Product Launch

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Transcript of Marketing Plan for a Product Launch

  • 1. Chitwant Raju Tahalyani Saurabh Mhase Sarang Banubakde Kedar Risbud Digvijay Singh Yadav Dr. Swati Gogawat Varun Balakrishnan
  • 2. 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 ITC Contains all essential nutrients Substitute and/or additive to milk
  • 3. OBJECTIVES Corporate objectives: oITC wants to be the leader in the HFD market with special focus on the rural HFD segment. Consumer retention o New consumers from rural markets o New consumers from urban markets o Existing consumers of existing HFD Intermediaries retention
  • 4. 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 (%)
  • 6. COMPETITORS AND PRICING BRAND PRICE Glaxosmith Kline - Horlicks Ninja Rs [email protected] 500gms jar - Junior Horlicks 123 and 456 Rs [email protected] 500gms jar - Lite Horlicks Rs [email protected] 500gms jar - Mothers and Womens Horlicks Rs [email protected] 500gms jar Boost Rs [email protected] 500gms jar Maltova and Viva Rs [email protected] 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
  • 8. 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
  • 9. 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
  • 10. 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)
  • 11. 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, Wonans Era etc.
  • 12. 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, Milk Parents' 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, MineralCaters to nutrition requirements
  • 13. ZONAL SEGMENTATION 90% of sales of health drinks come from the urban market whereas 10% come from the 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.
  • 14. POSITIONING High Nutritive value Low Nutritive value High Affordability Low Affordability Horlicks Boost Milo Complan Bournvita Aahar Proteinx Herbal life
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. DISTRIBUTION CHANNEL Manufacturing biscuits Manufacturing unit Atta Distributor exclusive Pan Dabbas Malls Retailers Whole seller Small Retailers Manufacturing cigarettes Manufacturing food products Hub
  • 19. 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 Aahar which 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
  • 20. CONTINGENCY PLANS Anticipated Risk: Immediate Launch Failure Long term Failure Reaction from Competition Decrease in Income of Consumers
  • 21. T h a n k Y o u Aahar the Source of Real Energy