Project Report on

MOSQUITO REPELLENT

Prepared By

MUSA RAZA
SHAHEEN AFROZ
NAIN TARA
ZUHAIB UD DIN
SHEIKH SAJJAD ALI
FAWAD KHALID

Compiled for

Mr. UMAIR ZIA

Date

22nd August, 2010

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 Contents
EXECUTIVE SUMMARY...........................................................................................5
1. MOSQUITO REPELLENT INDUSTRY- OVERVIEW..........................................6
0.1 SEGMENT WISE MARKET SHARE...............................................................6
0.2 THE EVOLUTION:............................................................................................7
1 MAJOR PLAYERS.....................................................................................................7
1.1 COMPANY’S SHARE SEGMENT WISE.........................................................7
1.2 KARAMCHAND APPLIANCES PRIVATE LTD. ...........................................8
1.3 GODREJ SARA LEE LTD..................................................................................9
1.4 RECKITT BENCKISER....................................................................................10
2 WHY WE CHOSE TO LAUNCH A VAPORIZER?...............................................10
2.1 Market Growing: The market for vaporizers has grown from 5% in 1999 to
20% in 2004. It is expected to grow even further since vaporizers are becoming
economical and people are realizing the disadvantages of using coils and mats. ...10
2.2 Safer And Convenient: Vaporizers are safer than coils since they just have to be
switched on. They are far more convenient as well. Many people complain of
breathing problems with coils which is eliminated through vaporizers...................10
2.3 Economical: Vaporizer is considered to be a premium product but if you
compare the prices of the coils and vaporizers today than there is not much
difference. Consumers have to bear the initial cost of a machine which is a onetime
cost and the per day cost of the refill is even lower than the coils. .........................10
3 POSTERS 5 FORCE MODEL..................................................................................11
3.1 Threat of competitors........................................................................................11
3.2 Threat of New Entrants.....................................................................................11
3.3 Threat of Substitute Products............................................................................11
3.4 Threat of Buyers Bargaining Power..................................................................11
3.5 Threat of Supplier’s Bargaining Power..............................................................11
4 FUTURE...................................................................................................................11
5 LAUNCH OF A MOSQUITO REPELLENT- FIGHTER.......................................12
5.1 ABOUT FIGHTER............................................................................................12
5.1.1 USP: The USP of our product is that it is the most effective herbal
vaporizer which has an added feature of being operated with a battery. ............12
5.1.2 INGREDIENTS: The ingredients of our product are:................................12
5.1.3 MANUFACTURING PLANT: Our manufacturing plant will be set up in
Daman because we will be exempted for sales tax for a period of 15 yrs as well
as it is in the centre which will save our transportation costs..............................12
6 MARKETING MIX..................................................................................................13
6.1 PRODUCT:........................................................................................................13
6.1.1 SEGMENTATION......................................................................................13
6.1.2 TARGETING..............................................................................................13
6.1.3 POSITIONING STATEMENT...................................................................13
6.1.4 PRODUCT DIFFERENTIATION .............................................................13
6.1.5 POSITIOINING STRATEGY....................................................................14
6.2 PRICE.................................................................................................................14
6.3 PLACE...............................................................................................................14
6.3.1 PROMOTION ............................................................................................14
7 STORYBOARD........................................................................................................15

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8 SALES PROMOTION..............................................................................................16
8.1 DISCOUNT SALES .........................................................................................16
8.2 COUPONS.........................................................................................................16
8.2.1 MULTIPACKS...........................................................................................16
9 NEW PRODUCT DEVELOPMENT PROCESS.....................................................16
9.1 Idea generation And Screening:.........................................................................17
9.2 Concept development:........................................................................................17
9.3 Marketing strategies:..........................................................................................17
9.4 Business analysis:...............................................................................................18
9.5 PRODUCT DEVELOPMENT:.........................................................................20
9.6 COMMERCIALIZATION: .............................................................................20
10 BRANDING............................................................................................................20
10.1 BRAND NAME- FIGHTER............................................................................20
10.1.1 TAGLINE- Be protected…. Always!!......................................................20
10.1.2 LOGO........................................................................................................20
10.2 BRAND ESSENCE.........................................................................................20
10.3 BRAND IDENTITY ......................................................................................20
10.4 BRAND PERSONALITY...............................................................................21
10.5 BRANDING STRATEGY .............................................................................21
11 PRODUCT LIFE CYCLE.......................................................................................21
11.1 The Introduction Stage:...................................................................................21
11.1.1 Product: Since we are in the introduction stage, we decided to concentrate
only on one product. Thereby we launched a vaporizer. .....................................21
11.1.2 Price: Being in the introduction stage, our price will be comparatively
lower since we want the upcoming people to use out product. We would adopt
penetration pricing in order to attract consumers.................................................21
11.1.3 Place: Initially we plan to launch in the two provinces that is Punjab and
Sindh. This will help us to concentrated only on these two provinces and use all
our resources here and become a strong brand.....................................................21
11.1.4 Promotion: Promotion will be done on a large scale which includes a
promotional party, hoardings, print ads and a press conference. This will create
awareness about our product which will stimulate our sales. We will having a lot
of sales promotions such as discounts, coupons and multi-packs........................21
12 SWOT ANALYSIS.................................................................................................21
12.1 STRENGTHS: ................................................................................................21
12.2 WEAKNESS:..................................................................................................22
12.3 OPPORTUNITY:............................................................................................22
12.4 THREATS:......................................................................................................22
13 FUTURE PLANS....................................................................................................22
14 CONCLUSION:......................................................................................................23

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 EXECUTIVE SUMMARY

This report summarizes the developing a new mosquito repellent

that would be more effective, safer, and less expensive than the
current market leader, “A Battery Operated Herbal Vaporizer
Repellent”. However, after discovering that the relationship between
repellent molecules’ physical properties and their repelling abilities
is poorly understood, another objective was pursued. The new aim
was to develop a new product, a mosquito repellent vaporizer
machine and its refill. The machine has an added feature of being
operated with AA battery. This battery if used every day will work
for about 45 days. So it can be used even without electricity and can
be used outdoors as well; for example tents, cars, etc.

To develop this new product, a utility function was created to

measure the wants and needs of repellent consumers. Six important
characteristics of a repellent were chosen: effectiveness, durability,
feel, form, scent, and toxicity. The ingredients were chosen to
contribute to these characteristics: Eucalyptus extract containing
50% p-methane-3 and 8-diol(PMD), Lemongrass oil, Citronella oil,
Tulasi oil , Clove extract and Palmarosa oil. A utility level for each of
these characteristics was related to a physical property of the
repellent formula using simple tests that a consumer could perform.
These utilities were then combined in a weighted average, where
each characteristic was weight-based to consumer preferences
gathered in marketing surveys.

The resulting utility function was used in conjunction with a demand

model derived from consumer choice theory that compares any
proposed repellent formula’s utility with a competing product’s
utility. Processing costs, shipping costs, raw material costs, and
advertising costs were also included in the model for optimization.

5
When utility was maximized, the model suggested a product that
was Herbal in nature. When the model was set up to find a product
that could compete with a broader range of products, the most
profitable formula was an herbal mosquito repellent vaporizer with
battery operated machine. This product had the potential of making
a lot of money.

1. MOSQUITO REPELLENT INDUSTRY-

OVERVIEW

Its sole reason for existence in the market is the omnipresent

mosquito, which makes life excruciatingly difficult for the
average Pakistani during summer and monsoon months. In many
ways the primary factor fuelling the explosive growth of this
market – characterized by low brand loyalty and low product
involvement –has been the availability of cost-effective,
mosquito repellents.

The night-long noisy drone of mosquitoes that disturbs our sleep is

music to the ears of the Rs1, 100-crore mosquito repellent industry.
The various segments in this industry are coils, mats, vaporizers,
aerosols and creams. The two new segments are personal sprays
and gels.

The category-wise market shares:

Coils command nearly 50 per cent of the market share, vaporizer
refills at 20 per cent, with mats at 10 per cent followed by aerosols
at 9 per cent and the rest shared by creams, heating devices and
other products.

0.1 SEGMENT WISE MARKET SHARE

The market for insecticides and repellents has grown by 20 per cent
in 2003-04 and is estimated to grow at about 20%. The rural market
for mosquito repellents is reckoned at around Rs 173 million against
a mere Rs 79 million in urban centers. The market leader of the
industry is Godrej Sara Lee Ltd. with brands like Good Knight, Jet
and Hit enjoying a market share of 40%

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0.2 THE EVOLUTION:

Coils were the first mosquito repellants to be introduced in the

Indian market. The first brand of coils was Tortoise, launched by
Karachi Chemicals Ltd. (BCL) in the 1970s. In the 1980s Good Knight
was launched and mats used with electronic mosquito destroyers
became extremely effective. In the mid 1990s Karamchand
Appliances created a new segment of vaporizers with the launch of
All Out. .This segment was almost completely dominated by KAPL.
GSLL (Godrej Sara Lee Limited) could no longer ignore this growing
segment and launched its own vaporizer under the Good Knight
brand in 1996-97.

In the latter half of the 1990s, the market became much more
competitive, with the entry of GSLL, Reckitt Benckiser and HLL. GSLL
launched an array of brands (all coils) like Jet Fighter (1997),
GoodKnight Jumbo (1999) and GoodKnight Instant one after the
other The company's other brands included Banish (mats), Hit
(aerosols), Hit Lines (chalks), Mospell (lotion) and Hexit (spray).while
Reckitt also launched its range of mats and coils. These new
entrants resorted to heavy advertising and aggressive sales
promotion tactics. Recently two new categories of personal sprays
and gels have emerged.

1 MAJOR PLAYERS
• KARAMCHAND APPLIANCES PRIVATE LTD. – ALL OUT

• GODREJ SARA LEE LTD- GOOD NIGHT, JET, BANISH, HIT

• RECKITT BENCKISER- MORTEIN

• JYOTHY LABORATORIES- MAXO

• TAINWALA PERSONAL CARE PRODUCTS- CASPE

1.1 COMPANY’S SHARE SEGMENT WISE

 Mosquito coil market:
Market leader: Mortein (35%) from Reckitt Benckiser Pakistan Ltd
Market Challenger: Good Knight with a share of 30%
Market Follower: Maxo from Jyothy Laboratories' is rapidly
increasing its share.

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 Vaporizer refill market:
Market leader: All Out brand from Karamchand Appliances Pvt Ltd.
(65%)
Market Challenger: Good Knight and Jet from Godrej Sara Lee Ltd.
together account for 24% of the vaporizer segment.
Market Follower: Mortein Vaporizer by Reckitt Benckiser has a
market share of about 5-7%.

 Mats and aerosol categories:

Market leader: Godrej Sara Lee leads the market with its brands
Good Knight Silver mat (68%) in mats and Hit (aerosol).

Market Follower: Mortein’s share in mats is estimated at roughly

15%.

1.2 KARAMCHAND APPLIANCES PRIVATE LTD.

ALLOUT

The name All Out is almost a generic name for Liquid Vaporizers
(vaporizers), a segment of Rs.22O crores in the mosquito repellant
industry. All out is the market leader in this segment with a 70
percent market share in 2001. KAPL was almost solely responsible
for creating this segment. Within a decade of its launch, All Out had
converted a large number of customers into vaporizer users.

Allout’s sales reached Rs 253 million in 1996-97. GSLL could no

longer ignore this growing segment and launched its own vaporizer
under the GoodKnight brand in 1996-97. Although the initial success
of All Out was largely due to technological innovation and first-
mover advantages, it was widely believed that what had kept the
brand going was strong marketing. KAPL decided to handle the
advertising for All Out on its own, surprising many industry watchers
and drawing criticism from some ad agencies. However, the
company surprised everybody with the launch of a campaign
featuring an animated, jumping frog (actually an All Out vaporizer)
eating mosquitoes, which proved to be immensely successful.

In 1998, KAPL came out with a Rs 99 pack consisting of the Pluggy

and a refill. The deal, called the 'deadly offer' was backed by heavy
advertising. . After KAPL's 'deadly exchange scheme,' GoodKnight's
share decreased by 9.3% in volume terms between September 1999
and February 2000.

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KAPL's distribution network consisted of around 120 distributors
across the country. Of the 900,000 outlets across the country, that
sold repellants, KAPL was available in only 18%. As this was
significantly lower than the 55% figure for R&C and 54% for GSSL,
KAPL is working towards increasing its presence.

1.3 GODREJ SARA LEE LTD

GOOD KNIGHT

Godrej Sara Lee Ltd. is a 450 crore turnover company with

brands like Good Knight, Jet and Hit. It is the market leader in the
mats segment with a share of 68% in May 2000. Good Knight has
become the most preferred mosquito repellent solution in the
country. The Good Knight brand was launched by Transelektra
Domestic Products Ltd (TDPL) in 1984. The product was
innovative and perfectly priced. Good Knight worked on a long
term strategy that would capitalize on its long-established
equity.

In the mid 1990s, Good Knight faced growing competition from

new coil and vaporizer products. To counter this thrust, Good
Knight re-launched its mat first as Super mat and finally as Good
Knight Silver mat in 2003, with contemporary packing, superior
technology and using a high decibel campaign. Today Good
Knight Silver mat is a market leader with 62% market share.

By 1999, Good Knight also joined the battle for the coils by
launching its red coil variant. Since Good Knight was seen to be a
hi-tech brand and coils were regarded as an entry-level product,
the company made sure that it did not suffer a downgrade in
consumer perception. It branded its version as a value-added
product, which lasted ten hours (compared to eight hours in the
case of most others). The color red was meant to convey
power. . The red coil category created by Good Knight is growing
and has cornered 50% of the coil market.

Good Knight entered the vaporizer segment in 1995 by launching

Good Knight liquidator and Liquid Mosquito Destroyer (LMD)
machine, together as a combo-pack. In a short span of three
years, Good Knight liquidator managed a share of 24% of the
vaporizer market and 32% of LMD market based on the strength
of the Good Knight equity. The Good Knight Vaporizer lasted 30-
45 days and just had to be plugged in. Good Knight Turbo refill, a
technologically superior product, was launched in 2004. It was
the right time for Good Knight to take the plunge and gun for
market leadership.

The most important USP for Good Knight is its brand equity, built
over a decade by its products and brand communication.

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1.4 RECKITT BENCKISER
MORTEIN

Rs 585-crore Reckitt Benckiser in Pakistan is high profile

particularly because it has a range of popular products. Reckitt
launched mosquito repellent coils and mats under the brand
name Mortein in 1994. Mortein is also available in liquid and
aerosol spray forms. Mortein is the number two pest-control
brand in the country Mortein sales grew by 9.2% in F12/01, as
against market growth of 9%. Mortein Coil sales grew by 14.5%
despite stiff competition in the category. For Mortein the strategy
is to increase penetration of coils, enhance brand salience of
other variants and tap niche segments through a stream of
innovations. Another target for 2001 is to gather a legitimate
share among vaporizers -- from 1.5 per cent to a double digit
figure. Mortein's share in mats is estimated at roughly 15 per
cent.

2 WHY WE CHOSE TO LAUNCH A VAPORIZER?

2.1 Market Growing: The market for vaporizers has
grown from 5% in 1999 to 20% in 2004. It is expected
to grow even further since vaporizers are becoming
economical and people are realizing the
disadvantages of using coils and mats.

2.2 Safer And Convenient: Vaporizers are safer than

coils since they just have to be switched on. They are
far more convenient as well. Many people complain of
breathing problems with coils which is eliminated
through vaporizers.

2.3 Economical: Vaporizer is considered to be a premium

product but if you compare the prices of the coils and
vaporizers today than there is not much difference.
Consumers have to bear the initial cost of a machine
which is a onetime cost and the per day cost of the
refill is even lower than the coils.

10
3 POSTERS 5 FORCE MODEL
3.1 Threat of competitors
The threat of competitors is high because there are a lot of players
in the market and two new segments that is personal sprays and
gels have come in which will increase the existing competition. Also
existing players are entering new segments which increase the
competition like Casper entering the vaporizer segment and Good
Knight the personal spray and gel segment.

3.2 Threat of New Entrants

New entrants to an industry can raise the level of competition,
which depends mainly on the barriers to entry. In case of mosquito
repellent industry the entry barriers are low since the costs to set up
the plant is not very high. The exit barriers are low and thereby
firms can enter and exit easily.

3.3 Threat of Substitute Products

The presence of substitutes can dilute the attractiveness of a
particular industry. The threat of substitute products is low. The
substitutes for mosquito repellent would be agarbattis and dhoop
that are used in villages. There are not many substitutes available.

3.4 Threat of Buyers Bargaining Power

The buyer’s bargaining power is low since they cannot influence the
prices to such a great deal. They have to purchase the product at
whatever prices available.

3.5 Threat of Supplier’s Bargaining Power

The cost of items bought from suppliers can have a significant
impact on the company’s profitability. The threat of supplier’s
bargaining is moderate. We can get our raw materials since they
are herbal and can be easily available. But certain oils are not
available everywhere which increases the supplier’s bargaining
power.

4 FUTURE
According to industry reports, the Pakistani mosquito repellant
market was expected to grow rapidly. Analysts said that with
improvement in literacy and health consciousness in rural areas,
the use of mosquito repellants was expected to increase
substantially in these areas. As the per capita usage of repellants
was very low in the country, there was considerable scope for

11
the market to expand.

5 LAUNCH OF A MOSQUITO REPELLENT-

FIGHTER
5.1 ABOUT FIGHTER
Our product is a mosquito repellent vaporizer machine and its refill.
The machine has an added feature of being operated with AA
battery. This battery if used everyday will work for about 45 days.
So it can be used even without electricity and can be used outdoors
as well; for example tents, cars, etc. The refill will be available in
25ml pack which will last 30 nights, 35ml which will last about 45
nights and 45ml lasting 60 nights subject it is used for 8 hours every
night. The liquid is light green in color. The vaporizer liquid is herbal.
It is very economical. Some of the benefits of our product are:

0 Effective evacuation of mosquitoes

1 No irritation of eyes
2 No hoarseness of throat,
3 No headaches and
4 No allergies.

Due to complex structure of herbal extracts in our vaporizer liquid,

mosquito do not develop immunity/resistance towards it like
synthetic toxicants.

5.1.1 USP: The USP of our product is that it is the most

effective herbal vaporizer which has an added feature of being
operated with a battery.

5.1.2 INGREDIENTS: The ingredients of our product

are:
0 Eucalyptus extract containing 50% p-methane-3 and 8-
diol(PMD)
1 Lemongrass oil
2 Citronella oil
3 Tulasi oil
4 Clove extract
5 Palmarosa oil

5.1.3 MANUFACTURING PLANT: Our manufacturing plant

will be set up in Daman because we will be exempted for sales
tax for a period of 15 yrs as well as it is in the centre which
will save our transportation costs.

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6 MARKETING MIX

6.1 PRODUCT:

6.1.1 SEGMENTATION
Geographic: Initially using the geographic variable Fighter has
segmented the market into the Punjab, Baluchistan.
Psychographic: It has also segmented on the lifestyle variable, for
people who have an adventurous lifestyle who can carry our
vaporizer at their outings.
Socio-economic Classification: SEC A, SEC B and SEC C. We have
also included SEC C because vaporizer is considered to be a
premium product but we want FIGHTER to be used by SEC C as well
since it is economical compared to the other vaporizers in the
market.
Behavioral: Fighter has segmented on the benefit variable by
providing the benefit of being protected from mosquitoes.
Fighter has also segmented on the basis of occasion where it can
used on occasions like camps, outings provided used in a closed
area.

6.1.2 TARGETING
Our target market is SEC A, SEC B and SEC C.
Income: Rs. 100,000+ p.a.
We would aim to target our customer which will be a woman
because Fighter is a household product and usually the woman buys
it.

6.1.3 POSITIONING STATEMENT

Fighter is primarily positioned as “A battery operated herbal
vaporizer which is the most effective to repel mosquitoes,
absolutely safe, convenient and economical which protects you
always.”

6.1.4 PRODUCT DIFFERENTIATION

Our product is one of its kinds. Most of the other vaporizers are
chemical based, whereas we are the first movers to have a
complete herbal vaporizer. We have an added feature of a battery
as well. Most of the other vaporizers become ineffective if there are
power cuts but FIGHTER overcomes this problem.

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6.1.5 POSITIOINING STRATEGY
Our positioning strategy is benefit positioning since we want to be
known as the most effective herbal vaporizer.

6.2 PRICE
The price of our combi-pack is Rs. 67/-.The price of the 25ml refill is
Rs.32/- 35ml refill is Rs.42/- and 45ml refill is Rs.52/-.
Our pricing strategy is Penetration Pricing because we want to sell
high volumes which will result in high long-run profits. The price of
our product is low as compared to our competitors mainly because
we are using herbal products and thereby our manufacturing costs
are low. We want to penetrate into the market and want to be
known as the a product which is value for money.

6.3 PLACE
We have a three-tier distribution system which includes
MANUFACTURER- DISTRIBUTOR- STOCKIST-WHOLESALER-RETAILER
The margins are as follows:
Distributor 2%
Stockist 3%
Wholesaler 5%
Retailer 12%

We will appoint distributors as per the density of population in the

states and the estimated demand. Punjab being the most populated
will have 3 distributors, one for Islamabad, one for Lahore and one
covered Multan, Bahawalpur. Sind will have 2 distributors one each
for Karachi, Hyderabad. Baluchistan will have one distributors and
even Khyber Pankhtoon Khuwa will have one distributors. These
distributors will appoint their stockists who in turn would appoint the
wholesalers.

6.3.1 PROMOTION
The means that we have used for promoting our product are as
follows:

1) Print Ads
2) Hoardings
3) TV Commercial
4) Press Conference

We have two print ads for promoting our product and creating
awareness among the public. These will be published in the leading
newspapers. The hoarding will be will be shown in all the major
cities.

14
We have one TV commercial which will be aired for about six
months. The message appeal of the ad is that of benefits and
uniqueness of product. On the day of the launch of the product we
will call upon a press conference for creating awareness about our
product through the media. The following are our print ads and
storyboard:

This is our first print ad wherein we want to show that our product is
an herbal product.

This is our second print ad which shows that Fighter is battery

operated and can be used outdoors.

7 STORYBOARD

Frame1:
Kashif is trying to meditate in a hunt in a jungle.
Frame 2:
The mosquito are disturbing him and destroying his concentration.
He says “ Hey ALLAH! Ye macchaar Mera dhyan Bata Kar Rahe
Hain!”

15
Frame 3:
He says “Inse Chutkara Kaise Payoon?”
He wants to get rid of them as soon as possible.
Frame 4:
He says “Yahaan toh bijlee bhi nahin hain…”
As he is in a jungle, then is no electricity and he has no other option
as he is a Kashif and doesn’t use chemicals that are harmful to the
environment either.
Frame 5:
He uses our product “FIGHTER” AS IT IS MOBILE AND HERBAL. He
gets rid of the mosquitoes. He is extremely overjoyed and in his
excitement he says “TUSSI GREAT HO FIGHTER”
Frame 6:
He continues meditation peacefully…! Our product is shown on the
screen.

8 SALES PROMOTION
The three vehicles which we have used for promoting our sales are:

8.1 DISCOUNT SALES

This is to generate trials. We will have stalls outside about 150 retail
stores including departmental stores, supermarkets in major cities
like Karachi, Hyderabad, Sukkur, Multan, Faisalabad, Lahore,
Islamabad, Quetta and Peshawar. The customer buying the product
for first time will get a discount offer. The normal price of our
product (machine +refill) is Rs.67 but the product will be given to
him at a price of Rs.60

8.2 COUPONS
Along with getting our product at a discounted price, the customer
also gets coupons. These coupons will carry a discount scheme
where the customer gets a refill of 45ml (which costs Rs.52) at price
of 35ml worth Rs.42.

8.2.1 MULTIPACKS
A multipack would contain 2 refill bottles of 45 ml and instead of
Rs.104 (price of both) it will actually cost Rs.96.

All these would boost our sales.

9 NEW PRODUCT DEVELOPMENT PROCESS

16
9.1 Idea generation And Screening:
Internal sources: through brainstorming we explored the
opportunities of every genre and studied the advantages and
disadvantages of every genre before deciding on one.
External sources: studying our competitors and their strategies and
through surveys conducted.
The ideas that came up were:
1) Personal Body spray – We rejected this idea because when we
took surveys not many people was not comfortable with spraying
themselves with ingredients that were used to repel mosquitoes.
2) Candles: We rejected this idea because mosquito repellent
candles have a lot of disadvantages. They can get blown off very
easily and thereby are not convenient.
3) Herbal Vaporizer: We considered this idea because none of the
major players had a herbal vaporizer and we could replace
chemicals with herbal products being as effective and much safer.
4) Vaporizer which could also be operated with battery: We even
considered this idea because here we could provide an added
feature of the vaporizer being operated with a battery. In small
towns where electricity is not very constant, it could be used. Even
on outdoors like camping it would be very useful.

After a lot of discussion we decided we launch an herbal vaporizer

which could be operated with a battery as well. It was technically
feasible to make such a product and it would provide dual benefit to
people.

9.2 Concept development:

We have made a product-positioning map to see whether our
concept of “a herbal vaporizer” would compete against other
alternatives already existing in market. After studying our positioning
map we decided to come up with a vaporizer which would be economical,
effective and herbal. We also decided to have an additional feature of a
battery socket.
This concept was put forward through some of target customers to
get their reactions. And the response we got was good indicating
strong customer appeal towards our product. The following is our
product-positioning map.

9.3 Marketing strategies:

Once the product was finalized, we designed our marketing
strategies to launch our product, which are elaborated previously.

17
9.4 Business analysis:
Once the product was finalized, we had to estimate our costs,
project sales and profits for the future to find out whether the
objective of our company could be achieved or not. This is further
understood in the cost sheet and break-even analysis attached.

COST SHEET
Initial cost of plant: Rs. 20000000/-
1st Year
(all figures in rupees)
Direct Material 17625600
Direct Labor 3264000
Prime Cost 20889600
Depreciation 2000000
Administration Cost 7833600
Cost of Production 30723200
Advertisement & PR 16972800
Selling & Distribution 15667200
Cost of Sales 63363200

2nd Year
(all figures in rupees)
Direct Material 19388160
Direct Labor 3590400
Prime Cost 22978560
Depreciation 2000000
Administration Cost 8616960
Cost of Production 33595520
Advertisement & PR 17233920
Selling & Distribution 17233920
Cost of Sales 68063360
3rd Year
(all figures in rupees)
Direct Material 22296384
Direct Labor 4128960
Prime Cost 26425344
Depreciation 2000000
Administration Cost 9909504
Cost of Production 38334848
Advertisement & PR 15690048
Selling & Distribution 19819008
Cost of Sales 73843904

Sales Estimation:-
Total Population of target market:- 2414.52 lacs approx.

18
Assuming only 2% of population approaches us for our product:-
24.14 lacs
Assuming each family to be of 4 members and some families may
buy two or more units of our product and some may not buy so
number of families who approach us for the product:- 12 lacs
Assuming 40% of families approach us for our refill only and not for
machines then number of machines sold would be 5 lacs appox. and
then some of these families may again buy our products and some
may not and also we can get new customers.
Next, assuming major chunk of population go for 45ml refill then
estimated sale of refills:-
45ml refills:- 360000
35ml refills:- 240000
25 ml refills:- 240000
Therefore, sale of 1st year:-
Product Price of No. of Units Estimated
Product Sales
Combi Pack Rs. 60/- 500000 30000000
25ml Refill Rs. 32/- 240000 7680000
35ml Refill Rs. 42/- 360000 15120000
45ml Refill Rs. 52/- 240000 12480000
Total 65280000

Revenue Estimation:-

1st Year:-
Estimated Sales: 65280000
Profit (6%) : 3916800

2nd Year:-
Estimated Sales: 71808000
(sales increase by 10% as compared to last year)
Profit (8%) : 5744640
(profit increases by reducing cost on advertisement)

3rd Year:-
Estimated Sales: 82579200
(sales increase by 15% as compared to last year)
Profit (13%) : 10735296
(profit increases by reducing cost on advertisement)

Break Even Point: after 3 years

Total expenditure for three years: 205270464
Total revenue for three years: 219667200

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9.5 PRODUCT DEVELOPMENT:
In order to develop the concept into a physical product and to
ensure that the product idea could be turned into a profitable
product we decide to first produce 2000 units initially of which
somewhere around 1500 units will be given to our target customers
from all western states and remaining units will be given to our
employees and their feedback will be taken.

9.6 COMMERCIALIZATION:
We have decided to launch our product in first week of May and
more awareness about the product will be created in the month of
May to induce the customers to buy our product. the sole reason to
launch the product in month of May is that the sales of mosquito
repellents rise during monsoon.

10 BRANDING
10.1 BRAND NAME- FIGHTER
0 It is easy to remember.
1 It portrays what the product can do.
2 Consumers can relate to the name.
3 It is easy to pronounce.

10.1.1 TAGLINE- Be protected…. Always!!

Fighter has the ability to fight with all the mosquitoes that affect the
consumer. His sole aim is to protect the consumer. Moreover it is
mobile and can be carried anywhere. So the tagline brings out the
same. Consumers who use the fighter will be protected always.

10.1.2 LOGO
Our brand logo is a leaf. The leaf portrays the fact that our vaporizer
is herbal. The leaf has the strength to drive away the mosquitoes
and thereby protect you.

10.2 BRAND ESSENCE

0 Core attribute-it is a vaporizer.
1 Extended attribute-it is a herbal, mobile vaporizer and is
effective.

10.3 BRAND IDENTITY

Fighter is basically an effective herbal vaporizer. It has an added
feature of being operated with a battery. It aims to identify itself as
a unique product considering it is one of its kinds. It will protect your
entire family from mosquitoes.

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10.4 BRAND PERSONALITY
Our brand personality is a 24 yr old educated woman. For her, her
family and their well being is very important. She loves nature. Likes
adventure and loves traveling outdoors. She likes being one step
ahead and always has a back-up.

10.5 BRANDING STRATEGY

The branding strategy that our company is following is that of
product branding as the company name is not associated with our
product ‘Fighter’. It has an independent identity.

11 PRODUCT LIFE CYCLE

11.1 The Introduction Stage:
11.1.1 Product: Since we are in the introduction stage, we
decided to concentrate only on one product. Thereby we
launched a vaporizer.

11.1.2 Price: Being in the introduction stage, our price will be

comparatively lower since we want the upcoming people to
use out product. We would adopt penetration pricing in order
to attract consumers.

11.1.3 Place: Initially we plan to launch in the two provinces

that is Punjab and Sindh. This will help us to concentrated only
on these two provinces and use all our resources here and
become a strong brand.

11.1.4 Promotion: Promotion will be done on a large scale

which includes a promotional party, hoardings, print ads and a
press conference. This will create awareness about our
product which will stimulate our sales. We will having a lot of
sales promotions such as discounts, coupons and multi-packs.

12 SWOT ANALYSIS

12.1 STRENGTHS:
• A herbal product

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 It is strength of our company as we have the first mover
advantage over an herbal vaporizer and also because
people are shifting their loyalties to herbal products as
they have realized the advantages of using herbal
products.
• Innovative- Battery operated
Our products extra feature, that it can be operated with
battery, making it mobile, is a strength as it provides
convenience to customers.
• Economical
The price of our product is comparatively lower to the
competitors though we provide the same quality.

12.2 WEAKNESS:
• It can turn out to be expensive if the vaporizer is extensively
used on battery.

12.3 OPPORTUNITY:
0 Market is growing at the rate of 21%
As the market is growing at a fairly good rate we have a
great opportunity to capture the market share.
1 First Mover advantage-First battery operated herbal vaporizer
We have the first mover advantage over being the first
herbal vaporizer in the industry. Being battery operated
gives us the advantage to attract different customers.

12.4 THREATS:
• Supply of raw materials
The raw materials used by us may not be available at all
times keeping in mind the natural calamity that may
occur.
• Competition from Existing brands having a large market share
• Increase in competition because of upcoming segments such
as personal sprays and gels.

13 FUTURE PLANS
After concurring the Punjab belt we would shift towards the Sind,
Baluchistan and Khyber Pakhtoon Khuwanouth . Eventually our
product would be available nationwide. We also plan to enter the
rural market. We also plan to diversify into horizontal integration of
mosquito repellent sprays and creams.

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Company plans to export its product to countries like Afghanistan,
Bangladesh, etc. ………………..
After making a significant mark in the country we plan to enter into
air freshener market where at present Ambipur is prevalent.
Last but not the least company would like to make its product enter
into the unaided segment i.e., at top of the mind.

14 CONCLUSION:
Because using a mosquito repellent means direct exposure to you,
your family, and your pets, we suggests to choose carefully if you
need to use repellents. Consider both the effectiveness of a
repellent and its potential health hazards. Our Product “A Battery
Operated Herbal Vaporizer Repellent” by the name of FIGHTER
fulfills both the requirement it is not only an effective but is also
safe to use because it is herbal in nature. This product also has a
unique feature of being operated with AA battery.

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