Launch Plan of Philips Coffee Maker for Pan India
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Transcript of Launch Plan of Philips Coffee Maker for Pan India
Coffee
Makers
By- Mehak Sharma
Tamanna Saxena
Areas covered in TT
Zones (TT) Stores Present
Stores Visited
Percentage
SOUTH Delhi 60 45 75%
WEST Delhi 90 53 60%
EAST Delhi 45 20 44%
NORTH Delhi 45 20 44%
GURGAON 50 33 68%
FARIDABAD 30 12 40%
NOIDA 8 8 100%
GHAZIABAD 10 6 60%
TOTAL 338 188 55%
No. of outlets visited
188+44= 232
Traditional Trade 188/338= 55%
*Total 338 stores in Traditional trade and 188 with Coffee Makers
Zones Store present
Store visited
Percentage
Faridabad 4 3 75%
Gurgaon 10 8 80%
Noida 8 6 75%
Ghaziabad 8 8 100%
North Delhi 3 2 90%
South Delhi 12 7 58%
West Delhi 15 8 53%
East Delhi 5 4 80%
Total Delhi NCR
68 45 64%
Areas covered in MT
*Total 68 stores in modern trade and 45with Domestic appliances
No. of outlets visited
188+44= 232
Modern Trade 45/ 68= 66%
Brand Name Morphy RichardsCountry U.K
Established 1936Company Glen Dimplex Group
Available at 111
Model nameCafé Rico Expresso Café Rico Filter Café express Roma Pump
Europa Espresso
Model No. 47003 47008 350005 350007
Price 4395 2795 2995 9995 3995
Color Black Black Black Mettalic gray Black
Pressure 15 bars
Power 1200 watt 1400 watt 850watts 1000 watts 800 watts
WT Capacity Cup Capacity 6 10 2-4 cups 8-10 cups 4
Removable Water Tank No No No Yes YesFrother Yes Yes Yes Yes Yes
Anti drip No No No No NoWarming Tray Yes No No Yes NoAuto shut off No No No No No
Body polyprophylene Plastic Stainless Steel polyprophyleneWarrenty 2 2 2 2 2
Accsesories Carafe No Cup No CarafeRemovable Filter Yes No No Yes Yes
Picture
Brand Name Black & DeckerCountry U.S
Established 1910Company Black & Decker Corporation
Available at 46
Model name Plain Model No. DCM 15 DCM55 DCM80
Price 965 2595 3290
Color Black Black Black
Pressure
Power 500 watts
WT Capacity Cup Capacity 1 4 12
Removable Water Tank No No No
Frother No No NoAnti drip No No yes
Warming Tray No No YesAuto shut off No No No
Body Plastic Plastic PlasticWarrenty 1 1 1
Accsesories Ceramic Cup Carafe Schott Glass CarafeRemovable Filter No No No
Picture
Brand Name CanteeCountry Spain
Established 1947Company Cata Electro Domestic S.L
Available at 24
Model nameGrinder and brew
filter Anti Drip 4 in one Crema Impressa Brew BaronModel No. Bean Czar Koffee Queen Magic Brew Crema
Price 5490 1690 8999 4490 6290
Colour Black Black Black & Silver black and silver black & silver
Pressure 15 bars 3.5 bars 3.5 bars
Power
WT Capacity 1.5 liter 1.5 liter 1.5 liter 0.24ltr 1.25 ltr 1.25 literCup Capacity 12 4 cups 4 cups
Removable Water Tank No No Yes No No No
Frother No No Yes Yes Yes NoAnti drip Yes Yes Yes Yes Yes No
Warming Tray yes Yes Yes No Yes YesAuto shut off Yes No No No No Yes
BodyStainless steel
&PlasticPolyprophylen
e Die cast alluminium Polyprophylene stainless steel PlasticWarrenty 2 2 2 2 2 2
Accessories carafe Carafe Carafe Carafe carafe carafeRemovable Filter Yes Yes No No Yes Yes
Picture
Brand Name Kenwood Bajaj SunflameCountry U.K India India
Established 1947 1938 1981
Company Kenwood Ltd (Now De'Longhi Group) Bajaj GroupSunflame
enterprisesAvailable at 17 51 7
Model name Plain KmixBrew
Master Espresso EspressoModel No. CM70 CM021 CM461 CEX7 CEX10 SF712
Price 1695 10095 2995 3990 3190
Color WhiteRed/Black/
White Black black silverPressure 15bars 15 bars 4 bars
Power 1200 watts 1200 watts 750 watts 800wattsWT Capacity 1 liter .5liter 0.6 ltrs 500 ml Cup Capacity 4 6 12 4-6 Cups 4-6 cups 4
Removable Water Tank Yes no Yes Yes No No
Frother Yes No No Yes Yes YesAnti drip No Yes Yes No No No
Warming Tray Yes Yes No No Yes NoAuto shut off No No No No No No
BodyAluminium
&Stainless Steeldie cast
alluminium Plastic Plastic Plastic PlasticWarranty 1 1 1 1 1
Accsesories Cup stand Carafe carafe Carafe Carafe CarafeRemovable Filter No No Yes No No No
Picture
Brand Name Prestige Russel HobbesCountry India U.K
Established 1955 2009 Company TTK Prestife Ltd Spectrum Brands Ltd
Available at 10 7Model name Percolator Filter Espresso Espresso FilterModel No. PCMGDB1.0 PCMH1.0 Pecmd1.0 RCM800 RCM 60
Price 1225 1295 2995 3595 1295Colour black Black Black Black Black
Pressure 3.5 bars 3.8 Power 600 watts 800 watts 800 watts 800 watts
WT Capacity 1 ltr 1.25 ltr 0.24 ltr 240 ml .6 literCup Capacity 2-4 cups 4-6 cupsRemovable Water Tank No No No No Yes
Frother No No Yes Yes NoAnti drip Yes Yes No Yes Yes
Warming Tray No No No No YesAuto shut off Yes No No No No
BodyGlass and
platic Plastic Plasticstainless steel and
plasticstainless steel and
platicWarranty 1 1 1 2 2
Accessories No carafe Carafe Cup Removable
Filter No No Yes No Yes
Picture
Brand Name Lavazza Inalsa DelongiCountry Italy Spain Italy
Established 1895 1967 1902Company Lavazza Taurus Group De'Longhi Group
Available at 1 35 2
Model name Lavazza blue Café Real Maxi Cream Brew King Model No. LB850 espresso Dc51TT
Price 16000 2895 3390 3895 Colour White Black Black black Black
Pressure 4 bar 4 bars Power 850 watt
WT Capacity 2.5 Cup Capacity 1 4 4 4
Removable Water Tank Yes No No Yes No
Frother No No No Yes NoAnti drip No No No No yes
Warming Tray Yes No No No yesAuto shut off No No No No Yes
Body Plastic Plastic Polypropylene Polypropylene
PlasticWarranty 2 1 1 1 1
Accessories Heat Resistant
Cup Cup No JarRemovable Filter No Yes Yes yes
Picture
Brand Name Hotline Nikitasha Moulinex Yashita KoryoCountry France India India
Established 1937 1997 2006
Company Groupe SEBYashita India Pvt
Ltd Future GroupAvailable at 10 1 1 1 3Model name Filter Espresso Espresso Filter Espresso Model No. VI9002 SRE301A subito KCM 1200 KEK 125
Price 700 1350 3220 1350 1490 799Colour black Black Black Black black Black White
Pressure 4.5 bars 4.5 bars Power 900 watts 800 watts 800 watts 1000watts 850 watts
WT Capacity 1200 ml 1200ml 1.2 ltr
Cup Capacity 10 cups 4 cups 15 6 cups
Removable Water Tank No No No No No No No
Frother No Yes Yes No Yes No NoAnti drip Yes No No Yes Yes yes YesWarming
Tray Yes No Yes No No No NoAuto shut off no No No Yes No No No
Body Plastic Plastic Plastic Plastic Plastic Plastic PlasticWarrenty 1 1 1 2 1 1 1
Accessories Jar Carafe 24cc carafe Jar Carafe Carafe NoRemovable
Filter Yes No No Yes No yes No
Picture
Presence of brands
Brand Presence
Morphy Richards
25%
Black & decker11%
Bajaj12%
Philips22%
kenw ood4%
Cantee6%
Inalsa8%
Others12%
MARKET Presence of Morphy Richards is 25%
NCR Volume Market Size – Coffee makers
NCR Total volume market size – TT+MT= 1589 unitsTT-927=55%MT – 762 = 45%
Monthly Sales for Drip Filter and Espresso
ESPRESSO
TT MT
Avg. Sales 673 584
% 54% 46%
DRIP FILTER
TT MT
Avg. Sales 254 78
% 77% 23%
Sales For Coffee Per Zone
Avgrage. Sale
240
161
97
128
106
146
24
6
Seasonal Sale
561
566
279
329
359
279
117
38
•South
•West
•East
•North
•Noida
•Gurgaon
•Faridabad
•Ghaziabad
Zones Avg. %Sales
Seasonal % sales
South Delhi 25% 22%
North Delhi 14% 13%
West Delhi 18% 22%
East Delhi 11% 11%
Noida 12% 14%
Faridabad 3% 5%
Gurgaon 16% 11%
Gaziabad 1% 2%
Zones Avg Sales(Filter)
Avg Sales(Espresso)
Total Avg Sales(Filter) %
Avg Sales (Espresso)%
Faridabad 8 8 16 50% 50%
Gurgaon 10 17 27 63% 37%
Noida 22 72 94 77% 23%
Ghaziabad 12 32 44 73% 27%
North Delhi 4 4 8 50% 50%
South Delhi 12 38 50 76% 24%
West Delhi 11 22 33 63% 37%
East Delhi 3 13 16 81% 19%
Average sales in Modern Trade
Average Sales per Month– Drip filter Vs. Espresso
Overall Espresso and Drip Filter Sales are 1257 and 332 respectively where as total is 1589.
Monthly Market Share
174
66
121
40
105
42
138
40
82
24
613134
82 40
20406080
100120140160180200
Espresso FilterCoff ee Maker
•South•West•East•North•Noida•Gurgaon•Faridabad•Ghaziabad
Zone Filter Espresso Zone Filter EspressoSouth Delhi 28% 72% Gurgaon 34% 66%North Delhi 22% 78% Noida 43% 57%East Delhi 29% 71% Ghaziabad 33% 67%West Delhi 25% 75% Faridabad 19% 81%
Seasonal Sales –Drip filter Vs. EspressoSeasonal Sales
174
387
168
398
105
174138
197
102
257
61
218
34
83
19 19
0
50
100
150
200
250
300
350
400
450
Filter Espresso
Coffee Maker
Sale
s
•South•West•East•North•Noida•Gurgaon•Faridabad•Ghaziabad
Zone Filter Espresso Zone Filter EspressoSouth Delhi 31% 69% Gurgaon 22% 78%North Delhi 41% 59% Noida 28% 72%East Delhi 38% 62% Ghaziabad 50% 50%West Delhi 30% 70% Faridabad 29% 71%
Overall Espresso and Drip Filter Sales are 2953 and 956 respectively where as total is 3909.
Price Cap South North East West Noida Faridabad
G’gaon Ghz’bad NCR
<1000 14 - 1 5 2 7 4 - 33
1000-2500 4 17 14 30 11 18 21 2 117
2500-3500 30 42 22 32 12 7 22 3 170
3500-4500 46 15 14 24 3 7 23 8 140
4500-5500 4 - - 1 - - - - 5
5500-6500 - - - - - - 1 - 1
6500-7500 - - - 1 - - - - 1
7500-9500 10 1 1 - - - 5 - 17
9500-12000
6 - 1 - 2 - 1 2 12
12000-16000
2 - - - - - - - 2
Price Cap for NCR
Price Cap for Espresso
Price Cap South North East West Noida Faridabad
G’gaon Ghz’bad NCR
<1000 - - - - - - - - -
1000-2500 - - 1 8 - - 2 - 11
2500-3500 32 21 13 29 9 9 16 3 132
3500-4500 36 10 4 20 3 3 16 2 94
4500-5500 - - - - - - - - -
5500-6500 - - - - - - 1 - 1
6500-7500 - - - - - - - - -
7500-9500 10 - 1 - - - 5 - 16
9500-12000
6 - 1 - 2 - 1 - 10
12000-16000
1 - - - - - - - 1
A BIG Gap!!!!
Lavazza : The only Player !!
Kill Morphy Richards
Morphy with a wide price range and 5 models is present in 25% NCR market and is Available at
111 Stores.Philips following Morphy with
22%.in NCR and is Available at 71
Stores.
Lavazza – Future of Espresso
.
ConceptLavazza , the ideal espresso for espresso maniacs even at home
InnovationComprised of an espresso machine and self-protecting, individually vacuum-packed pods, containing the prized Lavazza blends
The Capsules
@ Croma- CP
• Lavazza Capsule Costs Rs. 25 Each
• Used for Professionally Prepared Coffee
The Machine
An Integrated system combines technological
innovation, excellent quality and exclusivity.
Comprised of a Saeco espresso machine & self-protecting, individually vacuum-packed pods,
containing the Lavazza blends
Functioning
(Left to Right)Button 1- For FrothingButton 2- To put in a cupButton 3- For Strength hardness
Available @ CROMA Only
Original Price – 16000/-Croma price 13000/-Home ServiceHome DemoSales : 4-5 unit in a monthCapacity- 1 cup
Finally……….. The Cup!
• Dense, firm, and at least 2 - 3 mm thick
• Persistent: it lasts at least 2 - 3 minutes
• A full and fragrant aroma • Hazelnut colored• Thick crema chocolaty taste
Displays At Market
Aar Kay plazaRamesh Nagar
Malik EnterprisesMoti Nagar
Sound & imageHari Nagar
KCOP DistributorsDabri
Growing Threats…!!
• Cantee- 6 Models, both with high and low price range
• Bajaj- Capturing middle income segment with a low price
Available at 24 stores
Available at 51 stores
CANTEE BAJAJ PHILIPS
Philips is present in 71 stores while Bajaj and Canteeis following Philips by 51 and 24 stores respectively
MIP-Market Introduction Plan
• Market Situation• Distribution & Reach• Launch City List• Price Cascade• Launch Plan
Market Situation
S ales F or D rip F ilter
26%
74%
S ales F or Drip F ilter A vg.
S ales F or Drip F ilterS eas onal
S a les F or E spresso
30%
70%
S ales F or E s pres s o Avg
S ales F or E s pres s oS eas onal
MT18%
TT82%
Total Yearly Sales
Monthly and seasonally Drip Filter and Espresso are sharing market with 26/74 and 30/70 resp.MT and TT are sharing the sale of Coffee maker with 18% and 82% resp.
Distribution and Reach Total universe = 188 TT + 43 MT = 243 out of 43 MT we have
12 CROMA 4 Big Bazaar3 The Electronic store3 Spencer’s
Target POSM
TT-Stickers, Display Units
MT- Standies, Danglers
Target Segment
Household – 35%
Corporate-65%
Launch City : Place
We are going to launch are product in Delhi NCR occupied by 13,039,839 people and 8 distributors all over the Delhi NCR.
Price Cascade
Gap Analysis• Big gap in the range of Rs. 4000-12000• Morphy ends its espresso range at Rs.
4000 and Lavazza starts at Rs. 12000. We can launch 4-6 cup espresso : Rs. 4500-6500 or 6-8 cup espresso : Rs. 5500-8000
Product Cascade
•Where is PHILIPS Espresso?? – Market demand•Product Features:-o Espressoo Frothero Auto shut off
•Accessories- Carafe and Spoon
Need Analysis
Brand Pillars• Easy to use : easy to install at home.• Advanced : LCD Display, Fast Brew, Over Pressure Protection Device, Espresso + Cappuccino
5 Why Approach
Why someone should buy Philips Espresso??1. Price !! Like never before2.Compact in size3.More Cup in Less Price4. Stylish Sleek look5. Reasonable
Key USP
Benefit for Customers:
Benefit for Retailer:
Good Quality branded Coffee maker within a Reasonable Price
Higher margins/ Easy to store/ Easy Maintenance possibilities + with a brand name
Promotions
Trade Promotions
1.Retail promotions schemesOffers on keeping good stock
2.Gifts on first stock3. Offering shelves for display
Consumer Promotions
Taste and Think with Sense & Simplicity !!
• Demos @ Stores like Croma• Demos in colonies• Coffee demo at malls near by
Barista/CCD/Café mocha offering coffee to taste free of cost.
• 6 cup gift pack with launch stock
Sample cup for Consumer Promotion
Promote Coffee Habit with the product
• We promote near by college campuses specially in SOUTH DELHI like Gargi, IITD or DU.
• For Brand Awareness….. We choose college fest to promote our brand bySponsoring fest or particular event.Putting up a small coffee counter on very low
price. For E.g.
Strength
•Brand recall value•Already had an Brand acceptance in the market.•Known for providing best “Value for Money”
Weakness
•Low Margins •Less Variety•Low awareness of Philips coffee makers among consumers
Opportunities
•Growing demand by households in India•Coffee market is growing,
Threats
•Increasing number of players in the market•Low prices of competitors for E.g. Bajaj•Wide range with innovative features offered by the competitors
SWOT
Overall RecommendationsPhilips should introduce an espresso coffee maker
with a frother and removable filter. (Like Cantee and Morphy)
A range of coffee makers in terms of quantity should be made available. (For E.g. Cantee)
More Margin should be made available to the dealers as competitors are doing so. (Morphy- 22-25%)
Awareness among consumers should be made. (Demos at exclusive showrooms For e.g. Croma and Shoppers stop)
Certain tie ups should be made with the stores in Modern trade providing better opportunities for sales. (E.g. The Electronic store & Reliance )
Home demonstration services should be used in Case of modern trade
Thank you !