marketing project sem ii mv2usa uk

7/29/2019 Marketing Project Sem II MV2USA UK

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Company Name:

MV2USA

Manf. Add:

M.G Road, Karjat Plot no 10,


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AGNI CHOOL


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Executive Summary

Our product is an AGNI CHOOL.

It is set up by 6 management students after been concerned withthe environment, they came up with the plan for welfare of ruralmasses. The main reason behind invention of the product was theenvironment which was been hampered with the present usage ofchool and the blower. AGNI CHOOL has two compartments first iscoal using chool & second is Gas (mainly use of biogas).

The company decided to focus on smokeless chulhas which createsa safer environment for indoor cooking in several ways.

It traps smoke and heat inside a locally cast housing in such a wayas to heat two pot-holes with a high rate of efficiency to requireless fuel.

It then directs the smoke through a chimney chamber that includesa stack of slotted steel tablets-they capture particulates as thesmoke moves through, cleaning the exhaust before it ever leavesthe assembly.


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Continue

The chulhas chimney then includes an indoor access for

cleaning, eliminating the need seen in previous devices for afamily member, usually the mother, to climb on the roof andattempt cleaning. This has been blamed for many accidents,along with the toxicity of the smoke.

AGNI initially (We) will have a tie up with local vendors of

Nagpur and Gondia & small villages, district so that it wouldbe easier to reach the rural masses and create awarenessamong them there it will help to promote our product in themarket. Our customer will be a rural people of Maharashtra(Targeting areas are Nagpur & Gondia & Marathwada)

However it plans to enter the rural market, and later on indomestic market. Our future production will be as per thedemand in the market. We think that our product will besuccessful in rural market because its a unique product.


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GENERAL COMPANY DESCRIPTION

OUR BUSINESS :We are in the business of kitchen appliances.

This has a sub-sector of consumer durable product.

MISSION STATEMENT :To approach all needs of rural people

with competitive creativity and elegance and to service our

customers to the highest professional level.

Company Goals and Objectives :

To see our product in each region of rural Maharashtra.

To provide better service to our customers

Profitability


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Profile of rural market

LOCATION: Rural areas but in Maharashtra we will target

mostly that areas in which coal is abundantly available i.e.

Nagpur & Gondia.

Occupation: Normally occupations of our consumer are

farming, poultry, fisheries etc. Farming activities includegrowing crops, harvesting etc.

Media habits: Rural people are fond of music & folklore. In

rural Maharashtra a popular form of entertainment is the

TAMASHA &LAVANI & then there are televisions, radio,

hoarding, wall paints and melas etc.

Low income: 3000 to 6000 in rural area


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LITERACY RATE:

POPULATION ( IN Maharashtra) :

Area (2001) Total Male Female

Nagpur 40,51,444 20,95,489 19,55,955

Gondia 12,00,151 5,98,447 6,01,704

Sr. no. Area (2001) Total (%) Male (%) Female (%)

1. Nagpur 84.18 % 88.75 % 75.76 %

2. Gondia 67.67 % 76.74 % 58.62 %


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Market research

Primary Methods:

Tea stalls

Household

Secondary Methods:


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Study of our rural consumer behavior

Our rural consumer is very conscious about getting

value for money. He understands symbols and colors better, andlooks for endorsement by local leaders or icons.

He doesn't like to pay extra for frills he cannot use.

He has his daily routine, and there is no sense ofurgency in his lifestyle.

He has a very high involvement in any product

purchased, especially when he decides to buy high-end products, which cost a few hundreds orthousands of rupees.


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Segmentation for rural markets in Maharashtra

Geographic:

Region Maharashtra state is in western . In mainly eastern area.

(Nagpur, Gondia)

Village size 10,000 & aboveDensity Rural

Demographic:

Age Above 25

Family size 2 & above

Gender Male & female

Income 3000-6000 per month

Occupation Poultry farming, goat/piggery development, fisheries,agriculture farming etc.

Education Literate , semi- Literate, illiterate

Psychographic:

Lifestyle RigidPersonality Decent

Behavioral:

Occasions Regular

Benefits Quality, price, service, durability.

User status First time user

Usage rate Light user, medium userAttitude to product Positive, enthusiastic.


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Targeting: The target markets for our Agni chool areNagpur & Gondia. Apart from these areas we have decided

to target our product in rest of the Maharashtra if ourproduct is successful.

Main reason for targeting these areas is because coal easilyavailable in these areas & also at reasonable rate.

The target audience for our product is mostly housewivesof rural area. We have targeted all the housewives ofselected region.

Positioning:

The positioning of our chool is,

It has 2 compartments, 1st for coal & 2nd for biogas

There is a separate blower in-built

Our chool can absorb heat.


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Product design

Compartment 1

Burner

Chimney

Door

Drawer

for ash

Fan

Compartment 2

Burner

Biogas Pipeline


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Rural marketing strategies

1) By proper communicating and changing qualityperception

2) By understanding cultural & social values

3) By providing what customers want4) By giving Maharashtrian words for our brand

5) By effective media communication

6) By adopting localized way of distribute

7) Melas

8) Paintings & Grafitti


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Rural communication

Wall Paintings

Haats & melas

Television

Radio Word of mouth


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Financial Aspect of Company

Source of Initial Investment

Sr No. Sources of Initial Investment (Funds) Amount

1 Investment by Partner (5 lakh per Partner) 30,00,000

2 Bank Loan 20,00,000

Total 50,00,000

Sr No. Application of Funds Amount1 Land 10,00,000

2 Plant and Machinery 20,00,000

3 Furniture 5,00,000

4 Vehicle 2,00,000

5 Stock (Raw Material) 5,00,000

6 Cash in Bank 8,00,000

Total 50,00,000

As per Partnership deed and level of Investment by each partner Profit sharing ratio is

1:1:1:1:1:1


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Sr No. Products Cost of Production

Per Unit

MRP

1 Agni Chool with 2 cooking unit 2,000 3,500

2 Agni Chool with 3 cooking unit 3,500 5,000

Sr NO. Assets Depreciation Rate

1 Plant & Machinery 10%

2 Vehicle 20%

3 Furniture 10%

Target is to sell at least 350 Agni chool in year 2013.


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Estimated Cost for year 2013

Rs. 1,00,000 is estimated Advertising and Marketing Cost.

Estimated Labour Cost. Is Rs. 500 per day.

Provision for Tax is to be provided at 30% of NPBT.


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Estimated Profit n Loss for year 2013

Particular 2013

INCOME :

Sales 1,33,50,000

Direct cost of sales 30,07,800

TOTAL INCOME 1,03,42,200

EXPENDITURE :

Payroll expenses 20,25,000

Rent 47,22,000

Marketing/promotion 93,445


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Depreciation 2,90,000

Finance expenses 30,000

Total expenditure 75,43,195

Profit before interest & tax 27,99,005

Less : Tax 8,39,701

Profit after interest & tax 19,59,303


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Future Plans

Setting Up of Bio Gas Plant

Developing new Product by sending on

Research n Development

Applying for Govt. Subsidies so that MRP of

the Agni Chool can be reduced.


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Competitors:

Priyagni Portable Chulhas.

Mamta Chulha.


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Porters Five Forces Model:


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Threat of New Entrant:

In case of AGNI CHOOL the threat of new entrant is high because of thehigh brand loyalty, customer switching costs and economies of scale

where as capital investments required is low.Competitive rivalry within an industry:

The competitive rivalry within an industry is low. Industry competitivestructure shows that there are only two companies in the market with

huge rural masses. There is high industry demand for the product in the

upcoming market.Bargaining Power of the buyers:

The bargaining power of the buyers is low which shows the possibility offorward integration is high.

Bargaining power of the suppliers:

The bargaining power of the suppliers are high which has few suppliersand high switching costs and there is a high importance of industry andthe suppliers have few substitutes

Threat of substitutes:

Threat of substitutes is high where they have an option of mud chulhasand the quality of substitutes is also high.

marketing project sem ii mv2usa uk

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