Mkting Project-fictitious product

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INDUSTRY OVERVIEW (Consumer Durables) Consumer Durables Consumer durables are those goods that are not destroyed by use i.e. they are durable. They are intended for direct use or consumption and can be used for a very long time. Durable goods are for home and office use. Consumer durables are divided into two parts:- 1 CONSUMER DURABLES ELECTRONICS HOME APPLIANCES Appliances Refrigerators Air - Conditioner Washing Machine Micro-wave Oven Computer Mobile Phones VCD / DVD Home theatre Plasmas Television Sets Vacuum Cleaners

Transcript of Mkting Project-fictitious product

Page 1: Mkting Project-fictitious product

INDUSTRY OVERVIEW (Consumer Durables)

Consumer Durables

Consumer durables are those goods that are not destroyed by use i.e. they are durable. They are intended for direct use or consumption and can be used for a very long time. Durable goods are for home and office use.

Consumer durables are divided into two parts:-

NEED FOR LAUNCHING AN AUTOMATIC FOOD MAKING MACHINE

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CONSUMER DURABLES

ELECTRONICSHOME APPLIANCES

Appliances

Refrigerators

Air - Conditioner

Washing Machine

Micro-wave Oven

Computer

Mobile Phones

VCD / DVD

Home theatre

Plasmas Television Sets

Vacuum Cleaners

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In the current scenario, an Indian woman who is now independent and career oriented forays into different activities. She is eager to strike a balance between her career and family life. The onus of cooking food and taking care of the home is on her. Considering the complexity of her activities she desires rest. However everyday cooking for her home, demands a lot of her time, thus leaving her with very little time for leisure or family. Now, in order to ease her cooking difficulties, a plethora of kitchen appliances like mixer, juicer, microwave, etc. are made available in this segment. These appliances are effective in their individual functions. But even then there is substantial amount of efforts required to manage them. To top it all, they eat away into the pockets thus increasing the household budgets. Sometimes even a chef is hired who could share the burden thus further increasing costs.

Looking at her plight, we – ‘GenNext Solutions Ltd.’ have felt the need to develop an appliance which can minimize cooking hassles as well as the preparation time. And what more – it’s cheaper than all the costly appliances in her kitchen.

Realizing this gap in the demand and availability of an ‘all-in-one’ appliance we introduce ‘Smart Chef’. It prepares food just like she would for her family. It easily replaces/ replicates the chef in the kitchen.

Thus, we believe that ‘Smart Chef’ is a very lucrative option, considering it is reasonably affordable with only a one time investment, to solve all cooking related problems.

ABOUT OUR COMPANY

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GenNext Solutions Ltd.

Vision:

Smart Chef would be an indispensable asset in one’s kitchen catering to one’s food related desires. We share our customer’s passion for food. Although we are pioneers, we are ready to face head on competition because we believe that we are innovative, sensitive to our consumers needs & strive to upgrade ourselves continuously. We take pride in our excellent after sales service and therefore look forward to sustain our customers.

Mission:

We aim to identify customer’s needs and provide them with A to Z solutions, thus impacting people’s life and leveraging their lifestyle.We are willing to foray in potential businesses that no one has tried before.

Values

Innovation: We believe in using cutting edge technology in providing solutions to make life convenient

Integrity: We believe that the first step to a successful deal is ‘trust’. As ‘Smart Chef’ is a good quality product, it would instill a level of trust amongst the consumers.

Work culture: We, GenNext Solution Ltd. believe in constant innovation. Thus, we encourage a healthy and competitive work environment for our employees to provide the consumer nothing but the best.

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PRODUCT

Our Product DescriptionIt is a consumer durable, which can be a part of every home. It is a one stop cooking solution. It helps you save your precious time. So for all our busy ladies, we present– your best friend ‘SMART CHEF’.

Value Proposition

The consumer is free to design, develop and deploy own recipes. One can decide on one’s own keywords for recipes. Quick to deploy, easy to use, ready productive setup. Uses less storage space, time and efforts Substantial reduction in cooking costs

Unique Selling Proposition

Automation of all cooking processes Memory chip that stores recipes Even an amateur can cook

SMART CHEF Features: A fiber body which will be silver in colour. Electricity cord 2 water pipes, 1 inlet and 1 outlet 1 residual tray Touch screen Sensor acting as a fire alarm Detachable Memory Card to feed in more recipes Internally attached equipments and storage compartments

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SMART CHEF’s Functions: Washing Peeling Cutting Boiling Warming Cooking Frying Baking

Defrosting Kneading Squeezing Mixing Tossing Straining Internal Cleaning Facility

Size Specifications:

The machine specifications for 6 serves:Length: 2 ft.Width: 2.5 ft.Height: 2 ft.

The machine specifications for 15 serves:5

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Length: 3 ft.Width: 2.5 ft.Height: 3.5 ft.

Recipes:On the preoduct purchase, we will provide 100 programmed recipes-

20 Mughlai (10 veg and 10 non-veg) 20 Chinese (10 veg and 10 non-veg) 20 Italian (10 veg and 10 non-veg) 20 Snacks (10 veg and 10 non-veg) 10 Baked dishes (with the option of eggless servings) 10 Drinks

Additional Features: Remote Control User Manual Recipe Book & extra recipes: A recipe book that will

consist of 100 recipes fed into the system. Plus another additional 100 recipes that could be fed into the system according to the consumer’s choice.

Sensor: Our product includes an in-built sensor that can detect any extreme temperatures or fire as well as take the required measures for the same.

Language Support: The ‘Smart Chef’ will have two language supports- English and Hindi.

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BrandingBrand Name: ‘SMART CHEF’:

The product name is in connection with its core benefit. It’s a machine which can cook food and hence ‘Chef’. It’s smart as it is totally automatic – i.e. it can do everything related to cooking - wash, peel, fry, bake, cook and much more and that too in very little time. Smart! Isn’t it?

Brand Logo:

Our logo consists of our brand name enclosed in a square along with a chef’s cap and an hourglass. The cap symbolizes a chef/cook and the hourglass symbolizes time. With the hourglass we are trying to promote the idea of saving time by using our product.

The red colour scheme is used according to colour therapy; the colour ‘red’ trigger s hunger. And that is exactly what the product wants to suffice.

Tagline: ‘For Generation Next’

The tagline basically means that our product is for the next generation i.e. the ones who believe in working ‘smart’ not ‘hard’. It is fast paced and therefore very time bound. It looks forward to products that make life simple and convenient.

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Brand Personality:

It is a technology, nothing less than a chef. It’s smart as it can multi-task, cook according to your likes and all this at a high speed. Above all, it understands your craving for a good meal after a hard day’s work.

Product packaging

We will offer two SKU’s with capacity to serve 6 people and 15 people. It would be packed in thermocol and cardboard box along with bubble packing.

After Sales Service

Our company servicemen will come to the consumer’s house for servicing.

We will provide free servicing for the first year to our consumers . For the remaining years we can enter into contracts with consumers on

a yearly basis Our contract fees will be Rs. 3,500 in which servicing will be done

every 3 months. We will also give an option of payment per service visit i.e. when

consumer does not want to enter into a yearly contract. A 24-hour Toll Free No.

Segmentation, Targeting, Positioning

Segmentation

We intend to segment our market as follows:

1) Demographic segmentation: a) Income: Our product is the first of its kind, innovative, convenient and

therefore would be priced accordingly. Hence, we target families whose monthly income is Rs. 150,000 and above.

b) Age: Since it is a consumer durable product people above 15 years would find it convenient to operate.

c) Geographic: Our product would be launched in the Tier-I & Tier-II cities i.e. Mumbai, Delhi, Bangalore, Ahmadabad, Pune.

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d) Family Size: Our product can cater effectively to nuclear as well as joint families of maximum 15 people at a time.

e) Gender: Our product will mainly cater to women considering the fact that we would be launching it in India.

f) Generation: We target the next generation which believes in working ‘smart’ not ‘hard’. It is fast paced and therefore very time bound. It looks forward to products that make life simple and convenient.

g) Social Economic class: Our product is targeting the upper middle class & high class. Including SEC A+, SEC A and SEC B +.

h) Psychographics’ Segmentation:i) Lifestyle: Our product is mainly targeted at people who are time

pressed & strive to achieve a balance between their careers and family life. They mainly fall under the career oriented category.

ii) Personality: We look at our consumer as ambitious woman, who will not take ‘No’ for an answer. She wants the best for her family and herself. Thus she will not compromise on her precious time. She wants things to be done right at the first time itself.

Targeting

Smart Chef is mainly targeted at people who are career as well family oriented or who live on their own, away from their families for the purpose of studying/working as well as whose monthly income is of Rs.1,50,000 and above. Thus Smart Chef is concentrating on only the Sec A+, Sec A, Sec B+, in the urban areas and industrial cities.

Positioning We have positioned SMARTCHEF as an A-Z cooking solution for career as well as family oriented people, mainly women. It is a onetime investment and would act as a replacement for one’s chefs and cooking appliances.

PRICE

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PriceThe two SKU’s are priced at Rs.39,999 for 6 people and Rs. 69,999 for 15 people.

We are adopting market skimming strategy On launch the prices are high so that we can skim maximum amount of revenue from the various market segments. At a later stage we would be reducing the prices gradually once the competition enters the market.

We would also give an option of EMI of Rs. 4000/- per month for 12 months for the 6 servings SKU and EMI of Rs. 4000/- per month for 20 months respectively for the 15 servings SKU.

PLACE

Our product will be launched in 5 industrial cities and towns consisting of Tier I and Tier II cities namely

Bombay, New Delhi, Bangalore, Ahmedabad, Pune

Distribution Flow Chart

The Super Distributor will distribute the product to the various Distributors in the different cities. We plan to have one distributor per city. He would in turn cover around 10 retailers (minimum). We will sell the product especially through electronic showrooms like Croma, Big Bazaar, Next, Vijay Sales, Magnet to name a few or through dealers to reach the retailers.

Also, in parallel, we would sell our product over the internet through our website.

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Phase I: PUSH STRATEGY

In order to promote sales, we would adopt the ‘Push Strategy’ after the launch of the product. This strategy would be adopted through trade sales promotion i.e. after sale of every 500 SMART CHEF’s per month, our distributors would be given a commission

Phase II: PULL STRATEGY

After gaining recognition and becoming a market player, we will shift to the ‘Pull Strategy’ which basically includes inducing sales by increasing promotion.

PROMOTION

PHASE I: Teaser Campaigns:

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Before we introduce our product in the market, we will run teaser campaigns especially on Billboards, TV and Print media. Here we will address the pain areas of cooking and that would be it. This will generate curiosity in the minds of the people and they would expect a product to address the same.

PHASE II: Introduction of the Product to the market:In this stage our main objective will be to create awareness for our product. We would be using the following mediums:

Printo Newspapers - Times of India, Hindustan Times, DNA, Indian

Express and Mid-day.o Magazines- SAVY, Femina, Me, Housekeeping, New Era, etc

Television Channels- Colours, NDTV Imagine, NDTV News and Aaj tak. Radio - Meow FM and Mirchi FM. Billboards OOH Brand Ambassador: We would have an ordinary lady, someone who the

consumers can relate to with their problems and thus look upon at SMARTCHEF as a solution. At a later stage we may rope in a famous celebrity like Kajol - who can make the consumers believe that after a hard day’s work, one can eat home cooked food – and all this in a hassle free manner.

Sales promotionWe would be using sales promotion techniques to entice trial.

Lucky dips Contests- Best Recipe Scratch Cards Free one year servicing Distribution of free crockery

PRINT ADVERTISEMENT CAMPAIGN

PHASE I: Teaser Campaigns:

Print Advertisement

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Through this ad, we are trying to attract attention of the reader. We have deliberately not given any details, either about the product or what we are offering in the ad. Thus we use the Teaser Campaigns. This would be shown for a few days before Phase II of our promotion begins.

PHASE II: Introduction of the Product to the market:

Print Advertisement 1

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In this ad, we have tried to show, that the person has a very hectic schedule and has a very busy day but still has to come and cook food for the entire family. With our product into the picture one can utilize that time for doing something else.

Print Advertisement 2

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In this ad, we have tried to show, that our product includes all the features of e cooking appliances which one generally uses in the kitchen like the juicer, microwave, toaster, coffee maker, roti maker, knives, stove, popcorn maker, mixer, pressure cooker, pans, etc. we have positioned it as an ‘all-in-one’ product in this ad.

Print Advertisement 3

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Through this ad, we are trying to portray a common woman, who now is relaxed and free from all the cooking hassles. Basically we are trying to portray the amount of effort that will be saved when one uses our product.

TELIVISION AD CAMPAIGNS:

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Phase I: Teaser Campaign:

6.30 am 6.40 am 7.30 am

6.40 am6.40 am

She starts getting ready for work

6.30 am6.30 am

A lady gets up early in the morning

7.00 am7.00 am

She drinks tea & reads the paper

6.30 am 6.40 am 7.30 am6.30 am 6.40 am 7.30 am6.30 am 6.40 am 7.30 am

6.40 am6.40 am

She starts getting ready for work

6.30 am6.30 am

A lady gets up early in the morning

7.00 am7.00 am

She drinks tea & reads the paper

8.00 am 7.00 pm 7.30 pm

8.00 am8.00 am

Leaves for work

7.00 pm7.00 pm

Comes home, tired even at the thought of

cooking for her family

7.30 pm7.30 pm

Struggles with her pots & pans

8.00 am 7.00 pm 7.30 pm8.00 am 7.00 pm 7.30 pm

8.00 am8.00 am

Leaves for work

7.00 pm7.00 pm

Comes home, tired even at the thought of

cooking for her family

7.30 pm7.30 pm

Struggles with her pots & pans

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8.30 pm9.00 pm8.00 pm

8.00 pm8.00 pm

Cutting vegetables

8.30 pm8.30 pm

Frying & almost finished cooking

9.00 pm9.00 pm

While trying to transfer the food over to the table –she drops it – all her effort

is now in vain

8.30 pm9.00 pm8.00 pm

8.00 pm8.00 pm

Cutting vegetables

8.30 pm8.30 pm

Frying & almost finished cooking

9.00 pm9.00 pm

While trying to transfer the food over to the table –she drops it – all her effort

is now in vain

Is this your story ?Is this your story ?

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Phase II: Introduction to our product

6.30 am 6.40 am 7.30 am

6.40 am6.40 am

She starts getting ready for work

6.30 am6.30 am

A lady gets up early in the morning

7.00 am7.00 am

She drinks tea & reads the paper

6.30 am 6.40 am 7.30 am6.30 am 6.40 am 7.30 am6.30 am 6.40 am 7.30 am

6.40 am6.40 am

She starts getting ready for work

6.30 am6.30 am

A lady gets up early in the morning

7.00 am7.00 am

She drinks tea & reads the paper

7.00 pm 7.15 pm8.00 am

8.00 am8.00 am

Leaves for work

7.00 pm7.00 pm

Comes home tired - but now has no tension of

cooking

7.15 pm7.15 pm

Rejoices on seeing her new kitchen friend –

‘Smart Chef’

7.00 pm 7.15 pm8.00 am

8.00 am8.00 am

Leaves for work

7.00 pm7.00 pm

Comes home tired - but now has no tension of

cooking

7.15 pm7.15 pm

Rejoices on seeing her new kitchen friend –

‘Smart Chef’

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7.20 pm 7.25 pm 7.30 pm

7.25 pm7.25 pm

Sets the recipe on the LCD

7.20 pm7.20 pm

Puts in th ingredients

7.30 pm7.30 pm

Watches TV as Smart Chef is now doing all

the cooking

7.20 pm 7.25 pm 7.30 pm7.20 pm 7.25 pm 7.30 pm

7.25 pm7.25 pm

Sets the recipe on the LCD

7.20 pm7.20 pm

Puts in th ingredients

7.30 pm7.30 pm

Watches TV as Smart Chef is now doing all

the cooking

7.40 pm 8.15 pm 8.20 pm

7.40 pm7.40 pm

Watches TV – hears the Smart Chef Bell indicating

food is ready

8.15 pm8.15 pm

Gets her food –completely ready

8.20 pm8.20 pm

Takes in the aroma –Realizes she has just made

a Perfect Meal

7.40 pm 8.15 pm 8.20 pm7.40 pm 8.15 pm 8.20 pm

7.40 pm7.40 pm

Watches TV – hears the Smart Chef Bell indicating

food is ready

8.15 pm8.15 pm

Gets her food –completely ready

8.20 pm8.20 pm

Takes in the aroma –Realizes she has just made

a Perfect Meal

Make Smart Chef your best

friend

Introducing An Innovation by GenNext

Solutions Ltd.

Make Smart Chef your best

friend

Introducing An Innovation by GenNext

Solutions Ltd.

Strengths:

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Convenience Our product is designed to make use of minimal effort while making a meal. It provides A-Z cooking functions thus making it very convenient for the user. Time Saving A meal for a family can be cooked in as less as 30 min that includes washing, peeling, frying, etc. Thus the amount of time saved compared to traditional methods of cooking is substantial.

First Mover Advantage No such product has ever been launched in the market. Thus our new invention will grab the attention of the masses giving us an edge over the other existing appliances that are meant to save time in the market.

Multi-purpose Product Our product can perform all cooking needs from washing to tossing, kneading to defrosting and all this in very little time. What’s more -it will clean itself and dispose of the waste. All these functions and all it require is the absolute lowest level of effort from the user.

No cooking knowledge required This product will provide permanent relief to all those women who do not know how to cook because now you don’t have to. With the ‘Smart Chef’, all your culinary needs will be taken care of.

Weakness:

High Price Since our product is customized, our price may not cater to the masses and people with a monthly income of more than 1.5 lakh only will think of going for it.

Absolute dependence on technology Our entire product is based on high-end technology, for this reason if any one part stops functioning then we offer then complexities could rise. Thus we offer after sales service so that such a possibility can be avoided.

Obsolescence of technology

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Since our product is technology driven, there is always going to be a high chance of this technology becoming obsolete.

Opportunities:

Adding refrigeration facilities. At a later stage Smart Chef could also perform refrigeration facilities and the consumer would not require a refrigerator as well.

Dietician services provided by the product. If the consumer suffers from a specific ailment, our product will tell the user if there is any precaution that needs to be taken with respect to the food that he eats.Eg. If one suffers from high blood pressure, then ‘Smart Chef’ will adjust the amount of fats or oil in the meal that is being prepared .

Measurement of nutrition It will inform the consumers of the amount of calories, fats, sodium, oil, etc. present in every meal as people are turning health conscious nowadays.

Expansion into other cities and towns In the initial phase we would be targeting Tier I and Tier II cities but later on with the popularity of ‘Smart Chef’ we aspire to expand to other cities in India as well as abroad.

Threats: Availability of cheap substitutes in terms of domestic help in India. There is a large segment of cheap unskilled labour and its not very difficult to find a cook.

‘Traditional way of cooking’ mindsetIndians are very particular about the method of preparation of their meals and would not be comfortable with switching to a new product that performs these functions for them.

PORTER’S FIVE FORCE MODEL

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Bargaining power of customers: No bargaining power since we are the only providers for such a product. For this reason switching to other suppliers is not an option. Assurance of premium quality and service. Thus customers have very

little bargaining power

Bargaining power of suppliers High because the product is novel and there would be specific suppliers. No threat of forward integration from suppliers because the product is

technology oriented and also capital intensive. Since we r customized, all our suppliers cannot make our product's spare

parts. Thus we will have to heavily depend only on a few of them. Thus we cannot switch suppliers easily. Thus bargaining power of suppliers is high

Threat of New Entrants Threat of new entrants is high because there are many players in the

market like LG, etc. who would try and replicate the product.

Threat of substitutes High: As in India domestic labour is not that expensive. Fast food, eat outs is a viable option. Existing wide range of cooking appliances destined to cut time Also there are always traditional methods of cooking that an Indian

woman would want to stick to.

Competitive Rivalry within the Industry Low: Our industry has high fixed costs and therefore competitors will have

to manufacture at full capacity even if it means cutting prices. Buyers will have high switching cost and therefore rivalry is reduced.