PROJECT PLAN

(MARKETING)

ON

FLY SAFE

SUBMITTED TO

DR. ANIL BHAT

SUBMITTED BY: GROUP 1

K.UDAYA RASHMI 2018H1490348P

T. VENKATA BHARATH 2018H1490361P
ASHA MADAMANCHI 2018H1490372P
VARSHA GUPTA 2018H1490404P
GAURAV BHAT 2018H1490407P

Department of Management Studies

 ACKNOWLEDGEMENT

We would like to take this opportunity to express our gratitude to our course instructor
Dr.Anil K Bhat, Associate Professor, Department of Management, BITS Pilani who inspired
us throughout the course and helped us to understand various topics like analysing and
positioning the target segment of our product, pricing considerations and targeted promotional
activities that became handy for our project execution.

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 Table of Contents

1. Executive Summary 4
2. Situation Analysis 5
2.1 Customers
2.2 Competitors
2.3 Context
2.4 Company
2.5 Collaborators
2.6 SWOT Analysis
2.6.1 Strengths
2.6.3 Weakness
2.6.3 Opportunities
2.6.4 Threats
3. Market Opportunities Analysis 8
4. Objectives 10
4.1 Marketing Objectives
4.2 Financial Objectives
5. Marketing Strategy 11
5.1 Differentiation
5.2 Focus
5.3 STP
5.3.1 Segmentation
5.3.2 Targeting
5.3.3 Positioning
6. Marketing Planning 13
7. Projected P&L Statements 15
8. Review & Control 17
8.1 Annual Plan Control
8.2 Profitability Control
8.3 Efficiency Control
8.4 Strategic Control
9. Marketing Organization 20
10. Contingency Planning 23
10.1 Potential Risk
10.2 Worst Case Risk

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 1. Executive Summary

Product: “Fly”-Safe

Product Description: A lithium battery powered repellent that powers with an internal heating
element that silently warms and activates the repellent. Once activated, the repellent disperses
to create an invisible zone of protection that keeps mosquitoes and other flies from entering
into your outdoor space. And it works continuously, releasing fresh repellent to maintain the
zone of protection around you. The lithium battery can be recharged through solar panels
placed on the surface of the repellent. There is also an option for normal charging in case there
is no solar energy available.

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 2. Situational Analysis
2.1. Customer:
a) Who are potential customers?

This product can be very useful for those who go outdoors on a regular basis like travelers,
students or children. As nowadays diseases caused by mosquitos are so common, people are
forced to put sticky lotions or sprays to repel them. This product can be great for them as it
doesn’t have any odor or any direct contact with the skin.

b) Are there any customers who are not being served adequately presently?

Yes, especially travelers because there is no highly effective product in the market that can
save them from insects outdoor for a long duration. And that too, without having any direct
contact with skin.

2.2. Competitors:
a) Who are potential competitors?

All mosquito repellent lotions and sprays faces a direct competition from the product as the
motive of the product covers the objective of repelling flies and thus protecting from the
adverse attack.

Also, the product being odorless, non-sticky, ease of use and efficient energy management it
gives an upper hand to the product over its competitors

b) What are the bases of firm's advantages over its competitors?

No odor, efficient energy management, non-sticky, can be effectively used for outdoor
activities, no harsh effect on skin, human body friendly, larger coverage area (use of up to 15
sqft.)

2.3. Context:
a) What factors in the external environment influence how the firm will perform?

People’s conservative belief on the side effects of chemicals that may harm humans.

b) How will these factors change?

Educating the public about the product and conducting awareness programs.

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2.4. Company:
a) How much emphasis should the firm place on each market it participates in?

Firm mainly concentrates on Tourists, school going children followed by household and
schools. We emphasis on tourist and school going children mainly because they are the one
who will be exposed to the external environment.

Product can be even sold to street food vendors, Bus drivers, school administration etc. where
there are chance of more group of people assembling we can target those areas and sectors of
business.

b) What are the expected results of any given strategy?

Our main strategy of marketing is by emphasizing on the disadvantages of anti-pest lotions i.e.,
odor and skin sensitive issues. Based on this strategy it is more positive that people prefer our
product.

2.5. Collaborators:
a) Which collaborators will add maximum value to our offerings?

Primarily, we can collaborate with Government institutions where our product can be used and
with travel agencies as they can sell it to the travelers they have. Secondarily, we can
collaborate with private bus owners, schools, vendors where the product can be used.

b) Which collaborator will chuck competition?

Collaborating with Government institutions can do so if it becomes a monopoly. Also,

collaborating with big travel agencies can also do so.

2.6 SWOT Analysis:

The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats that may be faced by “Fly-Safe”

2.6.1 Strengths

 The differentiation strategy we are using to promote the product.

 Promoting product as odorless and can be used by anyone.
 Being new of its type in the market.

2.6.2 Weaknesses

 Being new, placing the product in consumers mind.

 The need for reliance on outside investors.
 The learning curve associated with entering an industry without direct prior
knowledge or experience.

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  The requirement to have a constant volume of business to support the
necessary service staff.

2.6.3 Opportunities

 Participation within a steadily growing industry.

 A high likelihood of developing varied products of similar technology.
 The ability to decrease fixed costs as a percentage of an individual sale as
volume increases.

2.6.4 Threats

 Introduction of similar products by well-established competitors in

repellent market.
 Gaining the trust among the people regarding the product.

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 3. Market opportunities Analysis

3.1 Can we articulate the benefits/values to the defined market?

Ans. Yes, we can articulate the benefits/values to the defined market because the necessity of
the product would be recognized by the targeted segment as we are using provocative ads to
market the product that we want to sell in the market. The product being unique in many ways
like the odorless & no direct contact with skin could attract a lot of people as most of the people
these days are getting health conscious these days so such technologies provide a large value
proportion to the customers.

3.2 Can we locate the target market using cost effective media and trade
channels?
Ans. We need to spend some hefty amount to make people aware about the need of the product
using media, however we can use social media so as to reach out to our customers in a more
efficient manner. For the same we would have to develop a smart social media strategy which
would include segmenting & then targeting the kind of consumers that we want for our product.
As the product is going to be used by a lot of travellers & younger generation people, having a
good social media strategy would help a lot. At the same time, we can tie up with e-commerce
companies that could help us in selling our product through their website/apps. Having a strong
distribution network could also help our sales.

3.3 Does the company possess or have access to critical resources and
capabilities to deliver customer benefits?
Ans. Yes, the resources needed for the product are already available in the market. However,
we need proper integration of the resources and for that special processes and skilled labour
will be required. For the processes, a standard operating process (SOP) could be designed &
followed. As far as skilled labour is concerned we can give trainings to the initial recruited
manpower for the production & packaging part.

3.4 Can the company deliver the benefits better than any other actual or
potential competitors?
Ans. As of now there are no competitors in the market for the kind of product that we would
be launching in the market. Our prime focus would be on “Differentiation strategy” in which
we would try to differentiate our product from the existing competitors selling similar products

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so as to attract more & more customers and at the same time try to capture the potential market
share before any potential competitors enters in the same segment with a similar product. The
product’s unique feature is something that has not been taken up by any other company so the
scope of our product being able to provide sufficient benefits to our customers would be greater.

3.5Will the financial rate of return meet or exceed the company’s required
threshold for investment?
Ans. The product targets a large population; hence the potential market would most probably
meet the expected level of sales to make a good return on investment. With the kind of
marketing strategy that we would be adopting, it is expected to attract a lot of people of different
ages & specially the younger generation who are mostly travelling, working out, busy with
their office work, etc. The product being indigenously made inside our facility would reduce
the overall cost of production & also the other variable costs that include transportation cost of
parts from vendors, larger inventory carrying cost, etc. This was we are predicting that the
potential sales would be above the threshold mark of investment.

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 4. Objectives

4.1 Marketing Objectives

• Increase Product Awareness – Fly Safe is new to the Indian Market hence we should
target to market this product in places we have mentioned and with pharmaceutical
companies, which can help us reach a major portion of our potential customers.

• Establish yourself in the Industry - Being a new entry it's very difficult to be heard
in the crowd so we can look forward for provocative ads in the above-mentioned
places where we see our potential customers.

• Increase Sales - We need to increase sales in such a way that it exceeds the cost of
marketing hence it should be specific to the above-mentioned targets as target
marketing reduces the cost associated with marketing.

• Brand Management - We need to maintain a place in mind of public. For

implementing this we can go for a tone or an image to remind customers about the
brand in spite of our product itself.

• Enhance Customer Relationship - For this to be achieved we need to provide good

after sales service so that we can get a better review about our product which can help
us increase our sales too.

4.2 Financial Objectives:

 Increase the profit margin by .5% a quarter.
 Achieve a double digit growth rate each year for at least the first three years.
 Develop efficiencies in the delivery of the service through advanced training and
workflow analysis.

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 5. Marketing strategy

Company will introduce new product in the market, so marketing strategy plays major role in
the success of the product. Company will use major two generic strategies for their product’s
marketing plan.

5.1 Differentiation:

 Company will provide product with unique features which is not available in
the market yet. Thus, company wants to attract customers with new features.
 Company will focus on the quality and the design of the product to ensure the
customers about the loyalty of the company towards customers.
 Company wants to differentiate the product in comparison with competitors’
product in the terms of features, quality, sustainability as well as usefulness.
 Thus, the strategy of the company is to provide values to their loyal customers
with differentiating their product as compare to the competitor’s product.

5.2Focus:

 Company will target different customer’s segment like sports enthusiast,

patients, busy work personalities, health conscious customers.
 So, company has to analyze each of the segment in detail to know about which
strategy will benefit in particular segment.
 After analyzing different segments on the basis of various criteria like
willingness to pay for the product, priority for the quality of the product, priority
for the design of the product, company will choose either cost leadership or
differentiation strategy for marketing of the product.
 Thus, company mainly focuses on the different segment of the customer with
different strategy to increase the market base.

5.3 STP (SEGMENTATION, TARGETING& POSITIONING) FOR FLY

SAFE
5.3.1 Segmentation:

Focusing comparatively more attention on specific segments rather than all is necessarily an
important task for almost all the companies in order to serve their target market better. Fly
Safe segments its customers based on the following categories:

S1: Travellers and Foreign Tourists

S2: Government owned vehicles and private bus owners

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 S3: School and College students
S4: Street Vendors
S5: Institutions like Hotels, hostels, schools, etc.

5.3.2 Targeting:

Market Potential: -

Market Potential = n x Q x t

n = People from Urban and who belong to middle and upper middle class and come under the
category of Free birds, Nest builders and Maturing Mentors + Foreign Tourists in India.

Free birds= 3% of total population, Nest Builders = 5% of total population.

Maturing Mentors = 38% of total population.

Foreign tourists are 10 million in 2017 and is estimated to increase by 15% every year = 13
million by 2019.

Urban population = 32 % of total, Middle and upper middle-class population = 3% +3%

Therefore n = 1363.1 million x 0.32 x (0.03+0.05+0.38) x 0.06 + 13 million.

n ~ 25.03 million.

Average quantity (Q) = 1

Time Period (t) ~ 1 year

Market Potential = n x Q x t

~ 25.03 million x 1 x 1 year

~ 25.03 million for every year.

Market Potential = n x Q x t

~ 15.2 million x 1 x 1 year

~ 15.2 million for every year.

5.3.3 Positioning:
“To the commuters who don’t find easy means to protect themselves from flying pests, “Fly
safe” is a portable plug-in less solution that gives you a convenient and effective way to protect
yourself from the flying pests when you are outdoors”.

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 6. Tactical marketing planning

6.1 Product:
 Need for the product:
1) To provide protection from pests even when outdoor.
2) Unavailability of effective mosquito and flies repellents which can protect us
without direct physical contact to the body for a longer duration.
 Requirements of Customer:
1) Non sticky, odor less and long durable product.
2) High range of protection.

6.2 Place:
 Urban and Town centric.
 Online directly and through stockiest, shops in tourism places.
 Grocery stores.
 Can use adventurous sports apparels vending stores like Decathlon as it is
targeted for travelers and adventurous sports people as well.

6.3 Pricing:

 Penetrative pricing targeting to increase the market share.

 For complete kit including repellent, batteries and mat price around: Rs. 180
Single mat cost: Rs.25 and the repellent refill: Rs. 40

6.4 Promotion:
 Promotion is based on rooting the notion “odorless, no direct skin contact and
long lasting”
 Promotions in various commercial, sport and animal planet channels.
 Promotions mainly based on differentiating features of our product from leading
competitors’ products.

Segment specific promotional design:

Promotions will introduces product and its benefits to potential market. These
promotions play an important role in success of any product.

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“Fly-safe” promotions are based on target segment, and is explained below:

 For Households: It is promoted by emphasizing on safety of children

when they were playing out or at school.
 For Vendors: Promotions will emphasize on increment of their sales if
their selling location is free from mosquitos and pests.
 For Schools, Government transportation means and other institutions:
Promotion will be emphasized on their interest on public (Students and
commutators) well-being and health.

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 7. Projected Profit & Loss Statement

As explained under marketing strategy the expected demand for the product is,

Market Demand = n x Q x t
~ 25.03 million x 1 x 1 year
~ 25.03 million for every year.
As this is a new product of this segment let us assume that 30% of calculated market potential
will actually by the product. Therefore number of units sold in one year will be 30% of 25.03
million i.e., 7.51 million.

Fixed cost is considered as 5 crores.

Unit variable cost is Rs. 93/-

Setting price:

The final selling price is set by considering 20% return to Retailers and 10% return to
wholesalers and considering 30% return to cost invested.

Total cost per unit production of “FlySafe” = Unit variable cost + (Total Fixed cost)/
Total units sold.
= 93 + (50 million)/ 7.51 million
~ Rs.100/unit.
Based on this consider final price be Rs.180/unit.

Retailer share = 20% of price

= 0.2 * 180
= Rs.36/-
Wholesaler Share = 10% of (180-36)
= 0.1 * 144
= Rs.14/-
Our income will be = 144 – 14
= Rs.130/unit
i.e., return will be Rs.30/- per unit.

Hence Price of the product for which the product will be sold is Rs.180/-

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Profit & Loss Statement (Expected):

Particulars Amount ( In Million)

Net Sales 1502
Cost of goods Sold 751
Gross Margin 751
Sales Expenses 180.16
(60 Million + 8% of Sales)
Distribution expenses 48.98
Promotional Expenses 153
(80 Million + 6% of sales)
Total Marketing Expenses 382.14
Managerial Salaries 33
R & D Expenses 15.5
Other Administrative Expenses 45.06
(6% of sales)
Net profit Before Tax 275.3
Tax paid 50
Net Profit After Tax 225.3

Assumptions made for P & L Statement:

 As calculated already expected Units sold = 7.51 Million.

 Total sales representatives will be 250 and each representative will be paid 2.4 Lakh
Salary per year.
 Other Sales related expenses will be 6% of Sales.
 Distribution Expenses include Transportation cost of goods.
 Managerial salaries include
Salaries of 6 top executives who will be paid 30 Lakhs per years
Salaries of other Managers, who will be paid 6 Lakhs per year each
 R & D Expenses include
Expenses of material for research.
Salaries of Scientists, 3 best scientists who will be paid 20 Lakhs per year.
Salaries of other R & D staff, total costing 9 million.
 Other Administrative expenses include miscillinoius expenses.

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 8. Marketing Review and Control System

The performance of any product or service in the market can be understood by well
analyzing the reviews. In case of products this can be understood by various factors
like analyzing the sale patterns or understanding customer reviews. The ways and
means or the techniques and devices that are employed to assess the marketing
performance over a given period are classified into four broad categories by Professor
Philip Kotler. These categories are:
1. Annual Plan Control.
2. Profitability Control.
3. Efficiency Control.
4. Strategic Control.

8.1 Annual Plan Control:

Annual plan control is the monitors current marketing efforts and results to ensure
that the annual sales and the profit goals are achieved. Annual plan control signifies
continuous ongoing performance verification against the annual plan and taking the
necessary corrective actions.
Annual Plan Control for “Fly-Safe”:
The main goal of our product is to increase and the market share and hence the
perfect measures for the performance of the product is by analyzing the trends of sales
i.e., whether the sales has been increased on not. Sales can be monitored and controlled
by:
 Setting monthly goals for sales representatives and also modifying these targets
based on targets i.e., during rainy season the need for repellants increases and
hence increasing the target during this season.
 In case of any unexpected discrepancy analyzing what has led to that situation
for example if there is a sudden decrease in sales analyzing whether it is due to
controllable factors like decrease in quality or decrease in sales representatives
performance etc or whether it is due to uncontrollable conditions like climate
These five tools can be used to perfectly track the Annual plan:

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 a. Sales analysis: Analysing the sales patterns of “Fly-Safe” and comparing with
expected outcome.

b. Market share analysis: Analysing whether the product is conquering the target
segment.

c. Market expense analysis: Analysing the cost and cut down unproductive
expenses.

d. Financial: Analysing the different financial ratios.

e. Attitude tracking: Consumer behaviour towards the product should be tracked

and analysed properly as it will help us to plan our further steps. Consumer
behaviour can be analysed by Feedback, Consumer surveys, Customer Panels etc.

8.2 Profitability Control:

Profitability control is to determine the actual profitability of the product, territories,

market segments and trade channels. To whether the product is delivering expert
features to users, profits to wholesalers and retailers and to the firm and also the
effectiveness of marketing activities. This information helps to make decisions of
expansion, contraction or suspension of marketing activities. Contribution made by a
product in overall profitability of the firm.

8.3 Efficiency Control:

Efficiency control is mainly deals with improving the efficiency of various marketing
activities like personal selling, advertising, sales-promotion and distribution.
Efficiency control is undertaken to evaluate and improve the spending efficiency and
impact of marketing expenditures on the marketing operations.

Various efficiency measuring tools are:

a. Sales efficiency.

b. Advertising Efficiency.

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 c. Sales promotion efficiency.

d. Distribution Efficiency.

8.4 Strategic Control:

Strategic control analyses whether company’s marketing objectives, strategies and

systems are optimally adapted to the current and forecasted marketing environment. It
refers to in-depth study undertaken to examine whether the company is pursuing its
best opportunities with respect to markets, products and channels.

Tools of Strategic Control are:

a. The marketing effectiveness rating review.

b. The marketing audit:

 Marketing Audit should be comprehensive, systematic, Independent, periodic.
 The marketing Audit components are Marketing strategy Audi, Marketing
Functions Audit, Marketing Environment Audit etc.

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 9. Marketing Organization
Marketing organization is an organizational structure which implements the policies of
the enterprise, helps in taking decisions regarding Products, Marketing channels, Prices,
Physical distribution and promotions.
9.1 Products:
As explained earlier “Fly-Safe” is a product that is mainly targeted to urban
middle and upper middle class people, commutators and vendors. In order to capture
more potential market we are designing “Fly-Safe” in various forms like:

a) Portable Repellants.

b) Lanterns.

c) Back Packers.

d) Mosquito repellant Torch.

Developed these variant products based on our differentiation strategy

and to capture more market share.

9.2 Marketing Channels:

Marketing channel is the means through which product will be taken to the
consumers. There are certain characteristics of any marketing channels. They are:

 Any Functions of marketing institutions cannot be eliminated.

 Routinization benefits are key driving force in any marketing channel.
 Channel members are part of many channel transactions.
There are predominantly 4 different types of marketing channels. They are:

 Direct selling.
 Selling through intermediaries.
 Dual distribution.
 Reverse channels.

Marketing Channel for “Fly-Safe”:

 Direct selling through marketing representatives is used mainly for

selling product to government institutions, schools and any other
institutions.
 Selling through intermediaries is used mainly to sell product to
households, vendors etc.

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  The featured products like Lanterns, Mosquito repellant torch are
sold majorly through ecommerce websites as they are designed
targeting premium class.
 “Fly-Safe”, in-addition to general FMCG stores can be sold in sports
apparel selling stores like decathlon as it is designed even by
considering people wo prefer adventurous sports, travelers.

9.3 Prices:

Price of the product has been decided by considering our market penetration strategy,
Profit for both retailers and wholesalers into consideration. Price of our portable repellant
is Rs.180/- as mentioned.

9.4 Physical Distribution:

Physical distribution includes various elements like Inventory management,

Customer service, packaging, Order processing, Transportation, Logistics.

 The transportation of our products from manufacturing plant is majorly

through Water and railways as major port cities are hub for inventorying
the product. As product is mainly for urban areas and almost all urban
regions in India have rail connectivity it is transported from hubs to these
urban regions through railways.
 Product usage manual will be present with each product which helps users
in using the product. Customer service will be provide to premium
products. This is done by educating few sales representatives in each urban
area so that they can do the repairs when demanded.
 Rest all elements of Physical distribution are modified based on customer
preferences and demands.

Hence marketing organization plays an important role in making

many optimal decisions related to our product.

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Marketing Hierarchy:

CEO

CFO CMO COO CPO

Zonal Manager Zonal Manager Zonal Manager Zonal Manager Zonal Manager
East West Central North South

Zonal Manager

Regional Sales
Manager

Sales
Administration
Executive

Area Sales
Manager

Distributor
Sales Executive
Salesman

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 10. Contingency Planning
10.1 Potential Risks:

 Problems generating visibility

 Overly aggressive and debilitating actions by competitors

Approach:

 If the problem is with the visibility of the product, increment in the marketing
budget will be done followed by providing incentives to the Sales force motivating
them to achieve their sales target better. Also, change in the current advertising and
promotion channels can be done.

 In case of aggressive and debilitating actions by competitors, we have to advertise

our product aggressively and take counter actions against the competitors by
clearing the negative points shown by the competitors to the customers.

10.2 Worst Case Risks:

 Determining that the business cannot support itself on an ongoing basis

 Having to liquidate equipment to cover liabilities

Approach:

 If the business is not able to support itself on an ongoing basis, we need to attract
new investors by the credibility of our product.

 In case of liabilities, we will try to get some financial intermediaries (loans) and if
it doesn’t work out, we can use our retained earnings to cover the liability.

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