launching of a popcorn machine
DESCRIPTION
POPCORN MACHINESPECIAL THANKS TO MY TEAM WHO MADE THIS REPORT POSSIBLETRANSCRIPT
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….!!!