launching of a popcorn machine

CASE STUDY:LAUNCHING OF POPCORN MACHINE

GROUP 9:10070 ARUN RAJ KUMAR P10082 K SWETHA NANDANA10094 PRAVEEN SHARMA10106 SHYLESH V10118 VISHAL ROY

Case Environment

• Mr. Sunil Gupta, Director of Durable Products (P) Ltd

• Idea of Launching “Big Pop”• According to Mr. Sunil Gupta -– Consumers show interest in gadgets leading to

convenience and fun– Profitable to manufacture and market the product– Wants to take the First Mover Advantage

Company Overview

• Nearly 30 year old company• Started with Auto ancillaries and diversified

into consumer durables• Distribution network in major cities• Loyal & dedicated sales force of 12 persons• Mostly depends on its agents for its Sales

Product

• 2 minute pop corn maker• Modified version of Japanese model• Motor & Heat shield are to be imported• Multipurpose machine- could also be used for

roasting and frying snacks• Recommended corn - made available in

selected stores

Distribution

• Through existing distribution channelsCompanyAgentsDealers

• Plans to Launch during Diwali• Agents’ Margin: 5-6%• Retailers’ Margin: 8-10%

Promotion Planned

• Earmarked 50 Lakhs• Focus on Kids• Ad press campaign in leading newspapers for 2

months• TV ads in national network about 8-10 times• Banners, cutouts, stickers, name slips at retails

points and school exhibitions.• Demonstrations in selected areas• Participate in “Living in Style” exhibitions

Why does Sunil want to launch ?

• A Trendsetting Gadget• Interest shown by consumers for such products• His own kids & family liked it• Multi-purpose Machine• Positive response from Agents

SWOT Analysis

Strength•Experience in

home appliances

Weakness• Limited cash flow • No market research• Complexity of the product

Opportunities• First mover advantage

Threats•Unsure

response from the market

SWOT Analysis

Should “Big Pop” be launched?

NO!!!!

Reasons

1. Demand Forecasting

• No market research

• Positive response from agents does not necessarily indicate demand

Reasons (Contd.)2. The statistics show that the demand for aaaappliances other than essentials is low Income vs Ownership of House hold appliances Cities vs Ownership of Home appliances

Upto 1000

1001-2000

2001-4000

4001-6000

6001-10000

10001+ Total0

102030405060708090

100

11.3

28

55

74

83.188

47.2

6.7

15.8

34

56.2

71.4

83.5

32.7

0.1 0.4 2.18.4

19.6

39.7

4.9

Electric IronMixer/GrinderToaster

Top 8 Metros 10L+ 5-10L 1-5L <1L Total0

10

20

30

40

50

60

Electrical IronMixer/GrinderToaster

Reasons (Contd.)

3. High Investment

• High Cost including imports

• High budget for promotion to spread awareness

• Cash flow of the company was just satisfactory

Reasons (Contd.)

4. Other Constraints

• Complexity and Technicality of the Product

• Voltage requirements and additional stabilizer

• Recommended variety of corn

• Limited sales force

We Suggest

• Do not launch this product as of now.

- Build the requisite capital - Conduct a market survey & catch the nerve

Thank You….!!!