“If we do not protect our environment,
My Grandchild will Scratch your
Grandchild’s Eye for a glass of
water….”GURDEEP SINGH ANAND
When you are green, you are growing.
When you are ripe, you rot…RAY KROC
Universal Business School
Project title: Marketing plan for a new product launch
Presented to: Prof. Bibhas Basumatary
Presented by: Marketing group 1
Members : 1. Manpreet Singh
2. Anurag Bisen
3. Chayya Devi Singh
4. Aseem Dubey
5. Omkar Phatak
6. Ajay Puranik
Company Name : MaaaOc Ltd.
Product : www.Greenduniya.com
Logo :
greener everything from today
CONTENT Part 1: Cover Page
Part 2: Contents
Part 3: Executive Summary.
Part 4: Introduction to Company.
Vision.
Mission.
Organization Structure
Part 5: Product Description.
Part 6: Scope
Part 7: Situation Analysis.
Industry Analysis
A. Porter Five Forces.
B. PEST Analysis.
Product Analysis
A. SWOT Analysis
B. Market Size.
C. Market Share of competitors.
Part 8: Marketing Mix(4 P’s).
Part 9: STP
Part 10: Value Chain And Ansoff Matrix
Part 11: Financial Analysis with estimated 5 years Cashflow.
Part 12: Consumer Behavior.
Part 13: Citation.
EXECUTIVE SUMMARY
The report explains the marketing Plan for the launch of a web portal for green products and consultancies. This product is launched by MaaaOc Ltd. (Manpreet, Anurag ,Aseem ,Ajay, Omkar, Chayya) . Portal will act as middle men between the producers who do not have enough capital to bring their products to market & the customers who actually requires those products. Business is supported by renewable sources of energy dept., a body of govt. of India.
In the very beginning we have explained the mission & vision of
the company. The product will be launched, following same vision &
mission. Product will be launched in the market with great
promotional & advertisement strategies.
The report examines that the product will be launched all over India with E-Business focusing mainly on Urban Population and Consulting Business focusing on both rural and urban sector. Segmentation is followed by marketing mix, Situation Analysis, Deep product and market analysis of renewable energy sector. For this purpose we have conducted SWOT analysis of the product to see its Strength, Weakness, Opportunity and Threats. PEST analysis and effect of Porter’s five forces are also included. Finally, it is accompanied by Budget and financial Analysis
Introduction to the MaaaOc Ltd.
Vision Statement: For a betterment of tomorrow,
everything should be green from today.
Mission statement:
Our mission is to save the earth by providing our customers, all green
Solutions for a better tomorrow. We deliver specifically developed
solutions, which promise success for their project. Our mission is to
help society adopt environmental practices that are sustainable as
well as profitable.
We achieve our mission by setting stringent criteria, providing
technical assistance, and publicly recognizing and promoting Green
Businesses with a seal that enables customers to shop in keeping with
their values.
MaaaOc ltd. In India
MaaaOc ltd. will commence their business in India from 1st April
2014. With the company office at a small room in Bhopal, Madhya
Pradesh.
INTRODUCTION TO GREENDUNIYA
PRODUCT DESCRIPTION
Our business is divided in 2 parts:
A. E-Commerce.
B. Consultancy Services.
With the view of green everything our E-Commerce website will act
as a market space for all the green products. There are many products
available in very small parts of our country for which, either the
customers don’t have awareness or the producers do not have enough
money to bring their products in the market.
For example, one of the partner of our company recently visited
Darjeeling, where he founded an old man selling an Ayurveda
medicine for diabetes patients for a merely Rs.200/- later on our
partner founded the medicine to be very effective .Similarly, there are
so many people like the old man who have these products but people
don’t know about them.
Our Company will provide platform for these kinds of products.
Also all the green products available in the market will be listed on our
website thereby providing each and every individual in this country ,
an access to these beautiful gifts of nature .And how we are going to
do this is included in “the Business Strategy” in the coming pages.
Green consulting is a phrase used to describe a range of consulting services that are aimed at helping businesses become more ecologically friendly, or "green." Green consulting is a relatively new field, and its popularity is increasing quickly as more businesses see greening their business practices as a route to attracting new customers or retaining old customers. Greening a business can also in some cases help businesses to earn financial credits for being ecologically sustainable.
Our Consultancy services will provide the solutions to do
everything in a green way. There will be solutions of all the questions
ranging from, how to clean your toilet? To how to manufacture a Car?
The consultancy services will be provided to each and every individual
at a very reasonable price. Thereby giving access of the consultancy
service to individuals, to farmers, to small industries , to large
industries and to Corporates etc.
How illiterate people will have access to our services will be explained in “the Business Strategies”
SLOGAN
“greener everything from today”
Organisation structure
Greenduniya.Com
E-Commerce Consultancy Services
Products &
Distribution
Manager
Marketing Manager
Renewable Energy
Sector
CDM & Carbon
Advisory Sector
Energy Efficiency
Ecommerce will be done by Chayya , Anurag & Ajay
Consultancy will be managed by Aseem, Omkar & Manpreet
SCOPE
Some Facts
According to the November 2009 issue of “Business Today” size
of green products in India is $56 bn. Which is increasing every
year by approximately 14%.
120 green products and technologies were displayed in green
building congress held in Hyderabad last year.
74 million people in India have access to internet (30% increase over March 2012) of which more than 60% shops online.
GREEN PRODUCTS AND MARKET CONCERN
Concern about the environmental issue is growing among
people as the effects of environmental depletion and resource
exploitation are dramatically becoming visible and an object of media
interest. A well-informed public opinion recognizes the priority of the
environmental issue and people are domestic with some
environmentally friendly behaviors. Companies started offering “green
products” to this base of consumers worried about the environment.
These products traditionally offer an additional benefit to the
consumer, called “greenness”, and charge a premium price. Thereby
providing us and opportunity to enter this unexplored market as we
are providing these green products at a very reasonable price.
In the last two decades, Green products have been protagonists
of a continuous growth in sales and popularity. Although the situation
is very specific according to each industry, they reached a considerable
market share in several industries and their sales are often growing at
a rate of more than 10% per year.
Soul of India lies in Villages but the irony is that more than 70%
of villages receive electricity for not more than 2 hours daily(Average).
The situation even worsens in the summer seasons.
A study concludes that, to light up Indian villages a whopping
94.51 billion Kwh(units) of electricity is required. The average per
capita consumption of electricity in India is 778.63 Kwh.
Many states are moving towards power generation through
solar , wind and other renewable sources of energy. In the city of Surat
in Gujarat , it is mandatory to have solar water heater installed in your
home. According to recent norms of government of India no Building
will approved if solar water heater is not installed.
SITUATION ANALYSIS
Industry analysis
Porter’s Five Forces of Competitive Position
Competitive Rivalry
4 green retailers and 1 green consultancy.
Industry size is huge and people prefer to buy more green products.
Being only company to offer green products & consultancy give us competitive advantages.
Supplier Power
Supplier power is low as there are many suppliers for green products.
Switching cost is not very high.
Threat of Substitute Products
In general, it is easy to sell in the internet, so, there are threats of substitute products
Other E-Commerce sites.
Buyer Power
Buyers have lot of choices
Buyers are large in number.
A product change cost is low and frequency is high.
Product & service is importance as it deals with sustainable
New Market Entrants.
Easy to enter but difficult to sustain.
Requires extensive knowledge of services to be provided.
High initial investment required
PEST Analysis
POLITICAL
Government has passed legislation which requires further reductions of CO2, HC and NC emissions for vehicles until 2015.
New Political forces, which are against tax reductions, may be elected in the next year’s elections.
Import restriction has increased in 2013.
Government is increasing its funding to ‘Specific’ industry.
Government is easing regulations for employment.
Increasing tensions between our Government and our major export partner’s government.
ECONOMICAL
iGDP will grow by 3.4% in 2014.
Availability of credit for business will slightly grow or remain unchanged in 2014. The same applies for the cost of credit in the 1 half of the year.
Unemployment is expected to decrease by 5.6% in the year 2014.
Wages will rise by 11% in 2014. Metal & Oil Prices will increase by 3.84% and Oil (Diesel= 1.2% & petrol = 6.5%) respectively in 2014.
SOCIO-CULTURAL
Positive Attitude towards products
Large & Dynamic consuming Classes buying through internet is $90 Billion is expected to grow.
Immigration is increasing
Increasing attitude towards job with shorter working hours.
Swadeshi thinking
People change their eating habits and now tend to eat healthier food.
TECHNOLOGICAL
New machinery that could reduce cost of Production costs by 20% in development. Requirement of green norms in every industry.
Countries major companies announced its plan to expand their internet infrastructure.
“New” Technologies like 6- sense and Li-Fi will be introduced in the market.
Product analysis
SWOT Analysis
Strengths:
Only company in the world providing green products and green consultancy
Product pricing lowest compared to competitors.
Distribution channel
Tieups with Suntek Solar products & Windsystems U.K.
Weakness:
Constant knowledge required for green solutions
Need moderately high amount of working capital
Consumer awareness
Low penetration in Rural market which is one of the major target of our product
Opportunities:
Policies and laws mandating application of green solutions within various sectors.
Changing consumer behavior for green solutions and products.
Technological innovations
Opportunity for partnerships wing companies like Suntek solar services & wind systems U.K.
Government providing subsidies for green businesses & tax exemptions too.
State Bank of India providing loans at a rate as low as 5% for businesses for social welfare
Threats:
Change in PESTLE environment
Consumers reluctance for adopting green products.
Continuous requirement of knowledge updation for providing unique solutions for consultancy services
High initial capital requirement for wind & solar energy systems
Market size
According to the November 2009 issue of “Business Today” size
of green products in India is $56 bn. Which is increasing every
year by approximately 14%.
74 million people in India have access to internet (30% increase over March 2012) of which more than 60% shops online.
India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012. CAGR vis-à-vis a global growth rate of 8–10%.
Market Share
Note :- eco India provide only eco-tourism and green tokari is only for
food products
Market share in consultancy : There is only one green consultancy firm
in India and that too provides ideas for green buildings.
E- commerce
green the gap
green n good
green tokari
eco india
26% 26%
5%
43%
Marketing Mix
PRODUCT MIX
Bath & Beauty:
Face Care.
Body Care.
Hair Care.
Bath.
Baby & Kids:
Baby clothing
Baby Oil
Baby Accessories.
Toys & Books.
Mommy Clothing.
Fashion:
Women Clothing
Men Clothing.
Kids Infant Clothing.
Health:
Organic & Ayurvedic
Remedies
Health Supplements
Food & Beverages:
Organic Beverages.
Organic Food.
Home:
Home Décor.
Laundry.
Bed.
Solar Product:
Jar Bulbs.
SERVICES
Renewalable Sources of Energy
A.Solar Energy:
Solar heater
Solar Cooker
Solar water Pumps
Solar Fans
Solar Inverter
B.Wind Energy
Windmill installations
C.Other renewable sources
Small hydro Powerplant
Bagasse Co-generation
Biomass
Waste to Energy conversion
D.Carbon Advisory Services
Consultancies provided to manufacturing companies to reduce their
carbon emission which seriously enhances the greenhouse effect. We
even provide low carbon emission ratings & points to industries.
Consultancy provided to automobile manufacturers to suggest them
ideas to reduce the emission from their products.
Initially, major target will be areas where solar Power, solar electricity
& windmills are important. So the major products required will be the
following three products :-
Suntek solar inverters
Voltage output: 650 va
Power output : 150 watt solarpanel
With solar LMLA (Low maintenance lead acid battery) of 100
ampere hour charge.
Money recoverable in 2 years
Suntek Solar Water heater
An average person require 25-30 litres of water per day.
A water heater with a capacity of 125LPD
5 year warranty
No maintenance
100% Safe
Money recoverable in 5 years
Will heat water at almost 330 days out of 365 days a year
Wind systems U.K. windmills
1KW capacity microwind systems
Can be installed on roof tops in rural as well as urban areas.
No maintenance
Money recoverable in less than 3 years
Note: Solar water heater will be required majorly in the areas where
installations of the same is mandatory according to norms of govt. of
India.
Windmills will be installed in the villages where electricity is very rare.
There are future plans for ecofriendly packaging also.
Price Mix
Though the market is still undiscovered by big players, also the existing
firms in the business are not considerably big, we will follow a mix of
Market penetration and Predatory pricing strategies to wipe out the
the existing players. (still the margins will not be deliberately low so as
to meet the norms of Competition commission of India)
Profit Margins:
Ecommerce
Product Range Industry Average Ours
F.M.C.G.(except food) 8-11% 5-7% Organic food 6-8% 5%
Beverages 4% 3% Apparels 30% 12.5%
Fragrances 40% 20%
Health products 17-20% 5% Baby products 12-15% 10%
(Above all is Primary Data from Karjat, Thane, Vashi, Bhopal & Indore
Markets & Through some green websites like greenngood.com etc)
Consultancy
Project Price Industry average Ours
Rs. 0-5 lacs - 1% Rs. 5-30 lacs - 0.8%
Rs. 30lacs + - 1.2%
( - indicates no player in the market)
Our Highlighted products
a. Suntek solar inverter
For Us
Dealer price for us 7,500( after discount of achieving target of selling
100 inverters in 1 year)
Downpayment 2500 Rs., 270Rs/month EMIs for 40 months
For Customers
One time buy price is Rs. 8990; (market price is 9990 Rs.)
Or EMIs of Rs. 300/month for 46 months (maintenance done by us)
b. Suntek solar water heater
Dealer price for us 12,000( after all discounts, target 50 units /year)
DownPayment 4000 rs., 350 rs. EMIs for 60 months
For Customers
One time buy price Rs. 12499.;(market price 14000 Rs.)
Or EMIs of Rs. 400/month for 66 months (maintenance done by us)
Promotion Mix
Theatre Ads showcasing our Website.
Creating mobile apps for different platforms showcasing our product, & twitter, facebook & whatsapp Advertisements
Tie-ups with publishing house for printing our ads on back page or FrontPage. Guerrilla marketing on women magazines, sport magazines & automobile magazines
Organizing marathons and quiz competitions in schools, colleges and corporates.
Award Functions for Green companies
Carbon credit points will be given to green industries & best will be awarded
Customer loyalty programs on website
Going to the villages, educating each and every individuals & telling the USPs of our products
Go green plays in schools & colleges
Direct marketing through door to door selling for water heaters & windmills
Tv ads on Doordarshan & Star news , Radio ads on Vividh bharti, FM gold & my FM
Place Mix As our product is a web base product we will be having a web space
on internet for selling of our product.
For consultancy too, we will be providing solutions all over India
through website only.
For Direct marketing of products like renewable sources of energy,
Village to village travel will be done.
Segmentation
Ecommerce
Consultancy
E-business
17-25
26-35
36-45
Individual business
Very Rare
Tech smooth (Green
thinker)
Can be influenced for green thinking
Tee- youth
Internet Sufers & thinkers
Enjoy Traveling internet user
Rarely exit
House buyers
Influencers
Major decision taker influenced
by Green
High tier –I mid Tier - II
Consultancy
Small
Mid
Large
Household
Budget constraint
Status conscious
Corporate
less attractive
Highly attractive
C S R activities
NGO
Involvement in village
Targets
Our main targets for ecommerce will be tee-youth segment of 17-35
years and businessmen & house buyers of 26-45 years age
For Consultancy services, our Target will mainly be village areas where
electricity is rare, cities where govt. has issued norms for solar energy
etc.
Positioning
GREEN
THE GAP GREEN N
GOOD
LEAD
CONSULTANCY
HIGH
PRICE
GREEN EVOLUTION
ECO
INDIA
LESS
CHOICES
GREEN
DUNIYA
MORE
CHOICES
LOW
PRICE
VALUE CHAIN
Payment
Payment order &packing
COD material
Customer Online
Portal
Supplier
Courier
services
Producer
ANSOFF MATRIX
NOTE :- WE ARE ENTERING IN THE EXISTING MARKET AS EXISTING
PRODUCT SO WE ARE IN MARKET PENETRATION
ANSOFF MATRIX
Existing Market
New market
Existing Product
Market Penetration
Market Development
New Product
Product Development
Diversification
FINANCIAL ANALYSIS
Loan = 8.5 lacs. @6% p.a. with monotorium period of 2
years and Re-payment period of 5 Year(2+5 yrs.)
Equity from owners= 5 lacs.
For meeting above requirements, the Debt Service
Coverage Ratio should be maintained below 2.2%
Expected Revenues for 5 years is 14 lacs, 19 lacs, 27
lacs,35 lacs and 45 lacs respectively.
Fixed Assets of 3 Lacs with depreciation of 30% p.a. as per
WDV (Written Down Value) method.
Advertising Budget for 5 years respectively are 8 lacs,
12 lacs,16 lacs,15 lacs and 13 lacs.
Working Capital required will be 6 lacs and 8 lacs for first
2 years and then 25% of revenue generated for next 3
years.
Working Capital finance by bank is 60%.
Other Operative charge will be 2 lacs, 3 lacs, 6 lacs, 9 lacs
and 15 lacs for the respective years(Approximate
estimation)
Company Registration fees Rs.3750/-, Copyright for Name
and Logo are Rs.4000/-
Website registration charge with 5 GB data backup, and
high speed server are approx. Rs.10000/-
Opportunity Cost(Room for office can be give on rent) are
approx.. Rs.12000/-p.a.
Investment : Rs.50000 deposit with 7 major clients for 5
years accounts to total of Rs.3.5 lacs
10% of all will be the safety margin in case of emergency.
ESTIMATED CASHFLOW FOR 5 YEARS.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Depreciation (90000) (63000) (44100) (30870) (21600)
Adverting Exp. (8 Lacs) (12 Lacs) (16 Lacs) (15 Lacs) (13 Lacs)
Written off Preliminary Exp.
(5,000) (5,000) (5,000) (5,000) 0
Interest (51000) (51000) (51000) (40800) (30600) Other operative expenses
(2 Lacs) (3 Lacs) (6 Lacs) (9 Lacs) (15 Lacs)
Salaries (1 Lacs) (2 Lacs) (3.5 Lacs) (5 Lacs) (6 Lacs)
Revenue generated 14 Lacs 19 Lacs 27 Lacs 35 Lacs 45 Lacs
PBT 1.59 Lacs 2.81 Lacs 49900 5.23 Lacs 10.48 Lacs Tax 0 (8100) 0 (34600) 1.54 Lacs
PAT 1.59 Lacs 2.73 Lacs 49900 4.88 Lacs 8.94 Lacs
Add: Dep. & Non-Cash 95000 68000 46100 35870 21600 Working Capital req. (6 Lacs) (8 Lacs) (11 Lacs) (14 Lacs) (18 Lacs)
WCBB 4 Lacs 5 Lacs 7 Lacs 8.5 Lacs 11 Lacs
Total Operating CF 54000 41000 (3.04 Lacs) (26130) 2.16 Lacs
Total Expected Cashflow from all activities (including investing and
finance) for 5 Years shows that breakeven point will be achieved
somewhere between 5th to 6th year.Hence business is Profitable.
Further consumer Analysis based on Secondary data is on next page.
Consumer Behaviour
Factor 20th century 21st century
Emphasis On “environmental” problems
On the underlying problems with our social, economic, technical or legal systems
Geographic focus On local problems (e.g. pollution)
On global issues (e.g. global warming)
Identity Closely link to other anti-establishment causes
A separate movement embraced by many elements of “the establishment”
Source of support An intellectual elite, and those at the fringes of the society
A broad base
Basis of campaigns Used forecasts of exponential growth to predict future environmental problems (e.g. limits to growth)
Uses evidence of current environmental degradation (e.g. the hole in the ozone layer)
Attitude to business Business is the problem. Generally adversial
Business seen as part of the solution. More partnership formed.
Attitude to growth Desire for zero growth Desire for sustainable growth
View of environment/business interaction
Focused on negative effects of business activity on the environment
Focuses on the dynamic interrelationship between business, society ,environment
CITATION
The Hindu.
Marketing Management (Philip Kotler).