Final Hard Copy MM Project 2007

8/8/2019 Final Hard Copy MM Project 2007

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P STARK LTDINTRODUCES

SPONGIES KID

SOAP

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INDEX

Company Summary

Mission Statement

Vision Statement

The 4 Ps

Product

Price

Place

Promotion

SWOT Analysis

Financials of the company

Credits

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Company Summary

P STARK LTD. was founded in Vapi, Gujarat in the year 2010.P STARK LTD

has developed soap for children. It will be initially based in Vapi in a rented

space. Our ideas are driven from our research and innovation. We wish to build

a brand which is reliable, efficient, cost effective and sincere in our efforts. The

production methods of the company are environmentally friendly. Our companyis a socially responsible company.

Mission Statement

We will provide products and services of superior quality and value that improve

the lives of the Indian consumers, now and for generations to come. As a result,

consumers will reward us with leadership sales, profit and value creation,allowing our people, the communities in which we live and work to prosper.

Vision Statement

Be, and be recognized as, the best consumer products and services company in

the India.

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4 Ps of Spongies

PRODUCT

Spongies

Product description

Spongies is rich, creamy tender baby soap. Spongies is the name of scented and

tender to skin baby soap, made by P Stark .Not simply nice to look at but even

nice to smell and use. Our product is not typically everyday medicated soap it

has the fun element attached to it which makes it to differ from other baby soaps

available in the market. The cartoon character SpongeBob has influenced us to

name the product as spongies. There are SpongeBobs Tiffins, t-shits,toothbrush and many more things so we have come up with spongies soap which

would attract the little ones.

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When our customers would think of tender soaps for babies and kids from P

Stark, they would think of emotions and glitter which would only make their

kids overjoyed. And has inspired to make the soap bar mold into the shapes like

stars, hearts, and alphabets with glitters. Spongies is derived from natural herbal

extracts which contains vitamins the unique combination between glitter and

bisabolol have moisturizing and soothing effects frequent use will leave your

kids skin feeling soother, fresher and softer to the hand. The glitter particles will

merely be an attraction for the young girls and boys which will turn into soapand not remain soap. The glitter flavored soap would be really pretty, shiny and

sparkly but a highly effective soap trying to cater to the personalities of the

young ones.

Features:

1. Moisturising baby soap

2. Mild and soothing soap that replenishes lost moisture while cleansing baby's

skin gently.3. Enriched with Olive oil, which is rich in Vitamin A and E, and Almond that

moisturizes the skin and is an excellent source of Vitamin D.

4. The visible benefits of the baby soap are; it prevents dryness of the baby's

skin after bath, keeps the baby's skin soft & supple & adds glow to the baby's

tender skin. The baby soap has a special shape to minimize dissolving in water.

Action:Olive oil, enriched with Vitamin E, ensures that your baby's skin is healthy

and lustrous.Almond oil is an excellent skin softener and moisturizes your baby's skin.

Labelling:

We have used a light pink colored cardstock paper for labeling.

"The FPLA (Fair packaging and Labelling Act) requires each package of

household "consumer commodities" that is included in the coverage of the

FPLA to bear a label on which there is:

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1. A statement identifying the commodity, e.g., detergent, Spongies, etc.;

2. The name and place of business of the manufacturer, packer, or distributor;

3. And the net quantity of contents in terms of weight, measure, or numerical

count (measurement must be in both metric and inch/pound units)."

Accordingly our label reads as:

Spongies Soap Guarantee A Smile On Every Child!!!!

INGREDIENTS: Olive Oil, Lye,Distilled Water, Fragrance Oils, Grapefruit

Seed Extract, Almond oil, Bisabolol oil.

NET WT.WHENPACKED 75g

M.R.P Rs. 15 (INCLUSIVE OF ALL TAXES)

MFD BY: P STARK LTD., PLOT NO.77, EPIP PHASE-1,Vapi.

PKD: O7/2010

WRITE TO: P STARK CONSUMER CARE, DODDAKANNELLI,

SARJAPUR ROAD, MUMBAI-400020

CALL TOLL FREE 1-800-455-1369 OR email us at: feedback.pcc@P

Stark.com

BEST USE BEFORE 12 MONTHS FROM PKDPackaging:

Spongies soap bars are shielded with Cellophane and polypropylene these are

clear plastics that are used to wrap many items. Cellophane and polypropylene

come in sheets and bags. Cellophane and polypropylene bags can be used to

wrap odd-shaped soaps and scented soap thus we have opted or this method of

packaging as our soap bars are molded into different & attractive looking

shapes. Cellophane and polypropylene sheets can be wrapped around soaps like

gift wrap. It is an easy and inexpensive way to package soaps. The spongies arecrafted into vibrant looking shapes and colors, thus clear packaging allows the

customer to easily see our work.

Our end product that would be supplied will be packed in Cellophane bags tied

with pink and blue colored ribbons with polka dots. The printed cellophane bags

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that are available in the market will be used by us to make the final supply.

SpongiessPurpose of Branding

The purpose of branding for Spongies is to create a powerful and lasting

emotional connection with customers and other audiences. A brand is a set ofelements or brand assets that in combination create a unique, memorable,

unmistakable, and valuable relationship between an organization and its

customers. The brand is carried by a set of compelling visual, written and vocal

tools to represent the business plan and intentions of an organization. Spongies

Branding will be the voice and image that represents the business plan to the

outside world.

Spongies makeup of Brand Identity:

Spongies will use a set of tools to strengthen and project the brand image;

Spongies will exhibit a slogan, a color, a symbol to build up a brand identity

Slogan

Spongies has successfully added a slogan or tagline to its brand name which will

be repeated in every ad they use. The slogan is Guarantee A Smile On Every

Child!!!!

Colors

A consistent set of colour to a product as it helps in brand recognition and thus

Spongies will use the colours yellow, blue, pink, lavender for its soap.

Cartoons and Animations

Spongies will have SpongeBob square pants as the cartoon which will carry our

product and help to capture the target audience and will be featured in all the

advertisement and promotional activities to carry the image of the product aswell as the brand to the prospective consumers.

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The target segment for our soap is 3 years 12 year old children. The targeted

audience is middle class and upper middle class.

Key Ingredients

Olive Oil: (Pomice grade) made from the pressing of the olive fruit and pits. An

inferior food grade olive oil but good for soap making.

Beeswax: Excreted by worker bees to construct the honeycomb. Has excellentskin protective qualities and increases hardness of soap.

Lye: The solution of Sodium Hydroxide and water. Sodium Hydroxide or

Caustic Soda is the strong alkaline base component of soap making

Distilled Water: The collected and condensed steam of boiling water.

Fragrance Oils: To give natural fragrance to the soap

Grapefruit Seed Extract and Vitamin E oil: As a preservative

Almond Oil: Itis an excellent skin softener and moisturizes your baby's skin

Bisabolol Oil: It has anti-microbial, anti-irritant and has skin healing properties.

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Manufacturing Process

Cold Process Method

1) The oils are heated and mixed in a secret proportion to a specific

temperature.

2) Pour distilled water in a measured container and add lye in a secret

proportion. This mixture will quickly become very hot. Continuous

stirring until the water turns clear. Let the mixture cool to the required

temperature.

3) Pour the hot oil into a large mixing bowl. Use a plastic spatula to get all

the oil out of the measuring cup. When both oil phase and lye/water phase

have reached their required temperatures, slowly pour the lye/watermixture into the oil mixture while stirring in rapid, small circles.

4) Continue to stir this mixture even after you have finished combining the

two parts. Add the desired dye to give colour to the soap.

5) Stir the soap till we get the desired thickness and consistency.

6) After the above process add the preservatives and the oils in the required

proportion.

7) Now add this mixture in a mould. Now cover the mould with a cloth and

place it in a warm location. Let the mould be undisturbed till the mixture

hardens up.

8) After the mixture hardens up, remove the mixture from the mould.

9)Now plastic wrap the soap and keep in a cool dry place to cure it or age it.

10) Now do the necessary test to check if the product is of superior quality

and is not harmful to the skin (Check the pH levels).

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11) After the process of curing is done it is ready to be packaged.

Price

Price: since the baby soap market is largely under the control of fewmonopolies like Johnsons and Johnsons co etc in the market. The size of these

companies are very huge and hence its not easy to breakthrough them. Thus

price here plays a important tool for Spongies to break this monopoly market

The pricing strategies appropriate are

Absorption pricing

Under this pricing strategy, Spongies would use a Method of pricing in which all

costs are recovered. The price of the product includes the variable cost of each

item plus a proportionate amount of the fixed costs. This would be Spongies

basic strategy along with the other strategy which would make sure that it

survives in the market

Market-oriented pricing

Under this pricing strategy, Spongies would be setting a price based upon

analysis and research compiled from the targeted market. This would be the

most appropriate as it its based on the research and analysis direct from the

market; it would give a clear idea for the Spongies to get the exact price were it

can meet the target customers pocket as well as the sale volume and profit

Penetration pricing

Under this pricing strategy; the price is deliberately set at low level to gaincustomer's interest and establishing a foot-hold in the market. Thus this would

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encourage more customers to not only examine the product but will also help in

squeezing a market place in the soap industry.

Price discrimination

Under this pricing strategy, Spongies would be setting a different price for the

same product in different markets. Spongies would charge a bare minimum price

in rural market were the baby soap industry has maximum opportunity; by

charging a very low price would attract the rural potentials to buy the product

especially for their newborns and kids. A higher price shall be quoted in metros

there by convincing people who believe in price equal to quality

Psychological pricing

Under this pricing strategy, Spongies would be setting a Price which is designed

to have a positive psychological impact on the potential buyers. Spongies would

price the product in such a way that the price would look more attractive and

turn the product into hot mover in the market for

(e.g.) Spongies would charge a price of Rs 49 (for 3 Spongies soap bar) instead

of Rs 50.

Credit Policy

Mission

The credit department shall offer credit to all customers except those for whom

the risk of loss is probable.

Goals

The department goals are to operate with no more than one collections person

per 1,000 customers, while attaining a bad debt percentage no higher than 2

percent of sales and annual days sales outstanding of no higher than 42 days.

Responsibility

The credit manager has final authority over the granting of credit and the

assignment of credit hold status.

Credit-Level Assignment

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All customers shall be granted a minimum credit level of Rs 250,000 without

any formal credit review. Any customers applying for a credit limit over this

amount must submit financial statements and credit references, which shall be

used with the companys credit scoring system to arrive at a credit line.

Collections Methodology

The standard collection methodology shall be an e-mail message including a

PDF file containing the invoice image, which shall be sent five days after the

invoice due date. The second step is a fax containing the same information,

which shall be issued seven days after the invoice due date. The third step is a

phone call to the customer, to be sent nine days after the invoice due date. If an

invoice larger than Rs 100,000 is unpaid once it is 15 days past the invoice due

date, all customer credit shall be halted. All invoices not yet paid shall be turned

over to a collection agency once they are 60 days past due.

Discount plans for Spongies Baby soap

Prompt payment discounts: discounts like 2/10 net 30 under this means the

buyer must pay within 30 days of the invoice date, but will receive a 2%

discount if they pay within 10 days of the invoice date. . This discount is

intended to speed payment and thereby provide liquidity to the firm

Discounts dealing with quantity: These are price reductions given for largepurchases. The rationale behind them is to obtain economies of scale and pass

some (or all) of these savings on to the customer

Non-cumulative quantity discount: These are price reductions based on the

quantity of a single order. The expectation is that they will encourage larger

orders, thus reducing billing, order filling, shipping, and sales personal expenses.

Coupons: A discount, either of a certain specified amount or a percentage to

the holder of a voucher, usually with Spongies terms like

Collecting 3 similar coupons and get a free SpongeBob sponge

Discount coupon with 10 % off on valid 3rd purchases of the soap from any

dealer

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Place

As our factory is situated in Vapi, transporting the Product (Soap) from the

factory to the consumers would require a specific process. Firstly, the product

would be stored in the companys warehouse, which is located in the factory

itself. Then, we would hire trucks from Mr. X, our dealer, that would help in

transporting the product to our Wholesalers. The product would then be

transported to the following wholesalers in Mumbai:

S.N Name Location

1. Mr. A Dahisar

2. Mr. B Santacruz

3. Mr. C Colaba

The product would then be transported, through the wholesaler, to our following

retailers across the city:

S.N Name Location

1. Mr. D Dahisar

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2. Mr. E Malad

3. Mr. F Andheri

4. Mr. G Santacruz

5. Mr. H Dadar

S.N Name Location

6. Mr. I Marine Lines

7. Mr. J Churchgate

8. Mr. K Nerul

9. Mr. L Thane

10. Mr. N Chembur

11. Mr. O Colaba

12. Mr. P Sion

13. Mr. Q Kurla

14. Mr. R Bandra

15. Mr. S Mulund

The product would then finally be received by the consumer (through the

retailer)

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Promotion-

Advertisement:

Due to the recent setup of our brand we as a company would like to develop

interpersonal customer,client/company relationships and receive individual

feedback. Product promotion through door to door marketing helps us achieveboth goals.

We found it beneficial towards our planning policies to invest capital for the

enhancement and betterment of our product in place of visual advertisement.

Personal selling :

In addition to managing our capital judiciously we aim to maintain a level of

interaction with our concumers. Therefore the media we use for the promotion

of our product is more public oriented keeping in mind the time benefit and

interest of both, the company as well as the customers .

For example we targeted the public of the major malls by putting up kiosks,

standes and distributing pamphlets which comprised of necessary information

appealing to the public.

Efficient interaction with the customers is one of our main marketing principles.

This includes door to door personal sales and advertisement. Our sales teamwould comprise of enthusiastic youth who would be guided and trained to show

excellence in product marketing and customers relations. Personal selling is

looked upon as an interactive and productive technique which also aids in

cutting down exorbitant costs and other financial resources.

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Sales promotion:

Urban areas:

Since there is a lot of awareness of kids soap and kids hygiene, getting our

product into the market is not a big issue. But besides this we have a tough

competition to face (Johnson n Johnson) in the market but we are trying to give

them tough competition by lowering our per product cost.

Rural areas:

There is not much awareness about kids soap and maintaining kids hygiene in

rural areas. To promote our product in such areas we organized campaigns and

also made announcement on local radio about the launching of our new kids

soap .

Market Survey

1) Does cost of soap affect your purchase?

a) Yes 64%

b) No 36%

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2) What kind of promotional activities would affect your purchase?

a) Stalls at School 5%

b) Stalls at Malls 29%

c) Hoarding 31%

d) Television Advertisement 35%

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3) What aspects do you prefer in kids soap?

a) Moisturizer - 32%

b) Anti septic 30%

c) Scent of soap 31%

d) Others - 7%

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4) Does packaging of the soap affect your consumption?

a) Yes 68%

b) No 32%

5) Which soap do you use for your children?

a) Doy- 26%

b) Johnson & Johnson- 34%

c) Dettol- 20%

d) Others- 20%

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6) Will your children prefer cartoon shaped soaps over regular shaped soaps?

a) Yes-69%

b) No-31%

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7) Will additional offers affect your purchase?

a) Yes-78%

b) No-22%

SWOT Analysis

Strength

Reasonable Price

Cartoon looks

Unique Composition of ingredients

Good Pacaking

Can be given as gifts

Quality

Weakness

Low market share

New Product so no guarantee

Lot of competition

High Investment

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Opportunities

Attracts kids.Can be used as a gifting item to kids.

Large market of untapped kids soap.

Threats

Low profit.Lot of competition with big companies with good finance.

Financial Plan

PRICING STRATEGY

COST SHEET

(COST PER UNIT)

Spongies

Manufacturing Cost

(Raw material, labour, place)

5

Other Cost 2

Selling and distribution cost 3

Cost of goods produced 10

Profit 5

Selling Price 15

Total Capital- Rs 65,00,000

Per unit price Rs.15

Manufacturing Cost Rs.27,50,000

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Other Cost Rs.11,00,000

Selling and Distribution Cost Rs.16,50,000

Total Cost Rs.55,00,000

Total Production Quantity - 5,50,000

Sales- 5,50,000 x 15 = Rs.82,50,000

Profit Rs.27,50,000

Breakeven Point When we sell 3,66,667 soaps we will

breakeven.

Credits

S.Y.B.M.S A

Name Roll No.

Abhinav Shah 45

Karan Salla 44

Pratik Vishwakarma 56

Rishab Ganeriwala 14

Rupali Patil 42Sri Ganapathy 21

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Taibah Shilliwala 49

Documents

Final Hard Copy MM Project 2007