THE BIG IDEA – BUSINESS PLAN COMPETITION

By,

CODE- B-08

PRODUCT DEFINITION

Introduce two model:

• Base model(UV sterilizer)

• High end model(RO+UV )

FEATURES

• It should retain natural quality of water

• User friendly features

• Enhanced taste and odourless

• In-built storage tank

• Long Life

• No wastage of water

BASE MODEL UV technology

Wall mounting

8 litre storage

Max 20W power

7.8kg weight

Applicable upto TDS range of 500mg/l

Major componentsSediment filter

Pre-carbon filter

UV lamp

Storage tank

High-end model RO+UV technology

Wall mounting

12 litre storage

Max 40W consumes

Major components Sediment Filter

Pre-carbon Filter

RO Membrane

UV Lamp

Treated water tank

MARKET POTENTIAL

THE WATER PURIFIER INDUSTRY

INR 34 BILLION INR 91.9 BILLION

(FY -2014) (FY -2019)

(Source: Research and Markets; Article ‘Home water Purifier Industry in India, 2014-19’, August 2015).

INDIA

POTENTIAL MARKET• Initial strategy to Market in Kerala

• 20% BPL and 80% potential customers

•Assumes 68.5 lakh families

DELIMITING

68.5 Lakh 52.5 Lakh

TARGET CUSTOMERS

coastal areas urban areas

Market share of top brands

46%

27%

7%

13%

7%

AQUA GUARD KENT LG PURE IT OTHERS

Source : www.mplans.com

MARKETING STRATEGY

Direct dealers-3000, Distributors -500

Retailers -20000.

Water test kit

Conducting free water pH level

Tie-Up with testing labs and doctors who treat for water

borne diseases

Tie up with promotional event like CSR activities run

Kerala run ,Red cross for the promotion of product

Make a 24* 7 customer service

FINANCIAL ANALYSIS

Pricing strategy

Competition

Cost

Use

Projected P&L for Assembling

Year I

Item Heads Base Model Plus ModelNumber of Workers Directly Involved 4 4

Assembly per workers per day 20 15

Capacity Utilization 0.50 0.50

Number of sales Exec. 3 3

Target/month for a Sales Exec. 200 125

Initial Investment :

Year 1 Year 1

Item Heads Base Model Plus Model

Unit Cost Price 3,800 5,500

Unit Selling Price for Base Model 10,000 17,000

Quantity produced 10,560.00 7,920.00

Quantity sold 9,600 6,000

Sales / Revenue 960,00,000 1020,00,000

Total Variable Cost 714,84,000 690,84,000

Total Fixed Cost 167,24,382 173,97,636

Total cost 882,08,382 646,81,636

PBT 77,91,618 155,18,364