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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”