Electronic Mosquito Killer (EMK)

7/28/2019 Electronic Mosquito Killer (EMK)

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Executive summery

Our company name is Dyno Company. It is a new company in the mosquito killing market

sector. We are about to launch a whole new product in this market which name is EMK

(Electronic Mosquito Killing machine). In this machine audio system has been integrated to kill

mosquito, which is completely smoke and chemical free and eco-friendly. Our company is new

so we don’t have vast resources.

Mission

Dyno Company’s mission is to change the traditional system to kill the mosquito in a harmful

way and thus making profits by selling the new replacement product which is EMK.

Objectives

We have some objectives to achieve our mission

1st

Year:

Lower pricing for a short period of time

Special sales promotion for first few months

Free supply to some buzz area (Hospitals, School)



2nd

Year:

Set price to gain 50% profit (each product )

Introduce various colors of the product

Selling suitable batteries for the product

Competitive environment

Dyno Company has some direct competitors such as ACI, Reckitt Benckiser (Mortein). So this is

a Monopolistic competitive environment. This environment has many buyers as well as sellers

and all the firms producing selling their products slightly differentiated way. As it is a

monopolistic environment, here price will be greater than marginal revenue.

Competitive Analysis

Our competitors’ are highly established in both eras, in market share and in awareness to the

target market. But our most competitive advantages are smoke and chemical free killing

machine. So we will convince our consumers with our totally different idea of mosquito killer

machine.

Promotion and Distribution

For this product we are using push promotion because the product is new in the market and need

recognition.

For distribution we have used retail outlets channel. This channel will help to have a good sense

about our customer through retailers so that we can improve our product as much as possible.

And also, we have provided our own agents to help the retailers to make our consumers satisfied.



Current Situation

• Market Description: To distribute this product we have segmented our target market

using psychographic method (basis on Social Class). We have figured out three targetmarket here -

• Upper class

• Middle class

• Lower class

Among these three classes we decide to go after upper class and middle class. Upper

class and middle class people have a potential income which is sufficient to get them buy our

products and they have that fashion sense that we want to serve through our product. Moreover,

they are health conscious and like to use eco friendly products.

• Product Review: Through this product we are trying to free our consumer from

disgusting traditional mosquito coil (which makes smoke a lot). Moreover this mosquito

killer will meet our consumers fashion sense because of its design, shape and various

colors. This mosquito killer machine doesn’t need more attention to run because once it is

charged users don’t have to worry for 6 months, it will work automatically, that’s why

this is not a complicated machine. This mosquito killer machine does not harm

environment at all, so eco-friendly people will be interested to buy our market offering.



• Competitive review: In our country we have two major competitors; they are

Mortein and ACI . Novartis and Square Group also produce mosquito killing aerosol

spray in our country. Instead of these we also have some foreign competitors such asGood Knight Mosquito Killer, X-Pell etc, but among these Mortein and ACI are main

competitors for us because they have a good market share.

• ACI Aerosol

Since its inception in 1967, ACI Aerosol has been the number one choice of consumers in

Bangladesh. ACI aerosol has been able to maintain its growth above the market growth. Market

category of ACI aerosol is A. The quality of ACI aerosol which has got ISO 9001 certification.

Their aerosol have moderate brand image on rural areas. ACI aerosol has high potentiality in

export sector. ACI aerosol bargaining power of suppliers and buyers is low. But Aerosol export

may be reduced if world economy is affected.

• Mortein

It is a Reckitt Benckiser’s product. It was Manufactured as an insecticidal powder in the 1870’s

by J. Hageman, a German immigrant to Australia. Now it is available in three forms -

• Coil

• Liquid

• Spray

Its mission is “To help families enjoy the great way of life… free from annoying and disease

carrying pests .”



Relative Market Share

SWOT Analysis

Strengths

• It is relatively cheap.

• New technological machine in market

• It is eco-friendly

• Easy to use

37%

31%

20%

10%

2%

Market Share

Mortein

ACI

Squre

NovartisForeign



Weakness

• This product has currently no introduction in entire market.

• This product has no ISO 9001 certification (currently).

Opportunities

• This product has high potentiality to export ( Because it is eco-friendly)

• In near future aerosol might be banned because it contains a high quantity of CFC.

Threats

• Aerosol industry is competitive.

• Competitors’ company can switch to produce eco-friendly product.



Marketing Strategy

Product Strategy: In this segment of Marketing Strategy we will give the information about

EMK’s differentiation and positioning style. Differentiation strategy will show that how the

product is different from the competitive product and how the product is useful for the users.

Positioning strategy will state how this product will set a position or perception of itself on the

mind of our buyers or consumers.

Product Differentiation: We have differentiated our product EMK to make it attractive by

contrasting its unique qualities with other competing products. These product differentiationscreate a competitive advantage for us and as customers view these products as unique or

superior.

Our product is differentiated from other products in various ways. These are-

The Complete Protection time (CPT):

EMK is very much protective to the users. Whenever the users will switch it on, the machine will

start protecting them from mosquitoes.



Easy to use:

This mosquito killing machine is easier to use than the other old mosquito killers, because, the

outer layer of the product is made of aluminum whereas the outer layers of coils are made of

harmful chemicals.

Performance:

The performance of this EMK is more efficient and effective than the others. In a very distinctive

way it kills mosquito creating no harm to the users where the toxic and radioactive gases in

aerosol cause serious harm to people.

Performance consistency:

When it comes at the point of being consistent, our product is much consistent at its

performance. If it is charged properly, it will work consistently.

Positioning:

We want our product to be known as the most effective, durable and comfortable mosquito

killing machine which also adds a new kind of home decoration idea.

• Positioning to the Statement: EMK is primarily positioned as “A battery operated

mosquito killer machine which is the most effective to repel mosquitoes, absolutely safe,

convenient and economical which protects you always.”



Pricing

The pricing strategy adopted by A Ltd. for its electronic mosquito killer (EMK) device is

PENETRATION PRICING because it is a total new brand, which is entering a market and

attracting new requires quality product at low price. Hence our product will be priced low which

will be economical and will encourage buyers. So we have adopted the penetration pricing

method for capturing market share and establishing ourselves in the market. After considering all

the factors i.e. cost of production, transportation cost, store charges, etc and after analyzing thisdata the finance manger of A Ltd. has decided the price list according to the material requirement

of the product and the making charges also.

The production cost of per electonic Mosquito Killer (EMK) Devivce is given below:

Silicon Battery 80 Tk

Outlook Box 50 Tk

Circuit 20 Tk

Speaker 20 Tk

Power cod 05 Tk

Labor Cost 05 Tk

Distribution Cost 05 Tk

Transportation Cos 10 Tk

Rent 05 Tk

Packaging Cost 05 Tk

TOTAL 205 Tk



According to the production cost of per piece of EMK will price Tk 205 and the selling price will

be Tk 290 which would earn the company a profit of approximately 40% on cost. After deep

research and market survey it is found that the company will meet its break-even point of

production within 1 year of its expected sales of 425 units per month.

Table of pricing variation between our New Company and Competitor Company

Our Company & product price Competitor Company & product price

Dyno Ltd.& electronic mosquito device – TK

290.00

• ACI Ltd. & ACI Aerosol- TK 310.00

per Bottle

ACI Coil – TK 50.00 per

packet(contained 10 piece only)

• Reckitt Benckiser Ltd & Mortein Seek

& Kill- TK 350.00 per Bottle

• Square consumer Ltd. & X-Pel

Aerosol- TK 380.00 per bottle



Consumer can use our product for two years whereas one bottle of aerosol or one packet of coil

of competitor’s company can be used only for some days. If consumers want to use aerosol or

coil for two years, they need to spend around Tk 7500.00 (for using aerosol) and Tk 3600.00 (for

using coil) within two years. Our product price is really low compared to the usage level and

pricing level with competitor products’ usage level and pricing level. Though consumers always

have a different loyalty status for different brands, they always remain concern to look for a

reasonable price of required products. Sometimes they buy some new brand product due to the

price or sometimes due to the features. As our new product (EMK) has been made attractive and

improved features compared to competitive products and it is available at a reasonable price, so

it is expected that consumers will adopt the product as soon as this new product enters into the

market.

Distribution

As our Dyno Company has selected and developed a unique product or business idea, correctly

positioned to its targeted buyers, and developed our packaging and pricing, now we can select

the distribution channels. A well designed distribution channel is a key to successfully market a

product. Many well developed products have failed to attain desired result only because of the

wrong choice of distribution channel.

It's fairly easy to change many of the marketing tactics and strategies on a periodic basis; pricing,

packaging, and product mix are among these flexible choices. However, distribution once made,

are much more difficult to change. And distribution affects the selection and utilization of all

other marketing tools.



Here are two diagrams of the distribution channel that the company Dyno has developed to

distribute the product:

Diagram: Distribution channel for Singer

AgentsManufacturer

Retailers

Customers

Agents

Manufacturer

Singer

Singer outlets

Customers



There is a wide variety of possible distribution channels, including: retail outlets, wholesale

outlets, sales force, direct mail, telemarketing, cyber marketing, TV and cable. But to distribute

their product they have chosen retail outlets as their distribution method. It is an indirect process,

where the product or service goes indirectly from the manufacturer to the retailers and then it is

transferred to the final users. The company has deployed their agents to deal with the retailers

and assist the retailers in different circumstances such as any dissatisfaction from the customers.

In this way the company has the customers’ feedbacks directly to them and they can make farther

improvement to their product.

Besides, the company is giving special benefits to Bangladesh’s biggest electronic giant “Singer”

to distribute their product through Singers outlets in different locations in Bangladesh. As Singer

has a well established distribution channel, it will be much easier for the company to get to its

targeted consumers.

Promotion

Promotion is an important part of any marketing strategy. There are three basic types of

promotional strategies – a push strategy, a pull strategy and a combination of the two.

Push promotion strategy involves getting the retailers/dealers to influence for product by giving

them larger profit margins and giving them incentives for the number of sales of product that are

made from their shops/showrooms.



As our company Dyno is going to start a new business and intend to sell a product through

retailers, we need to persuade retailers to purchase and stock our product. We also need to raise

brand awareness and start building valuable word of mouth referrals. We have decided to use

push strategy.

During launch phrase, our product promotion activities include:

• Advertising such as internet, newspapers, trade and consumer magazines, radio,

television, posters, billboards, even advertising on cars, buses, trucks etc.

• Workshops and seminars will be held in colleges to make people aware about the

company and product features, its affordability and effective system of executing.

• Business to business promotions such as trade shows, conventions, sponsorships,

contests, give-away such as pens, notepads, hats, etc (all printed with the company's

identity on it).



• Consumer promotions such as trial or sample packages, coupons, prizes, point of

purchase displays.

• Public relations, which includes press releases, building corporate and brand identity in

the community and the marketplace.

• Direct marketing (also known as one-to-one marketing), which includes variable

printing, direct mail, email marketing.

• Leaflets at the initial stage will be distributed at malls, school and college areas and

various other locations.

To make our promotion activities successful, we will focus to attract our target market by using

the above diversified means of promotions and advanced technology to our customers at realistic

price. We will give all the retailers/direct-dealers a good profit margin than our competitors are

providing them. We will also give them incentives for assuring for our product at a later stage as

we settle down in the market.



Conclusion

The product is created on the basis of green technology so it is eco-friendly. It doesn’t

create any pollution such as: sound, smoke etc. It is health hazard free. The ultrasonic that send

out from this machine is far away from hearing range of human being and pet. There is

no Pa-pa sound like using electroshock mosquitoes catchers. It is safe and user friendly. There

is no risk of electric shock. And it is also safe for children. The design of this product is

attractive. It is slight and portable and easy to place. The product will be found in reasonable

price. Overall the product is totally new and different and beneficial to customer.

Electronic Mosquito Killer (EMK)

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