Sahil Thakur Final Report 0719 (1)

The Marketing Plan for the product

“iCook”

BY:

Sahil Thakur

09BSHYD0719

IGO, ONIDA

SIP REPORT

The Marketing Plan for the product

“iCook”

SUBMITTED TO: SUBMITTED TO:

PROF. HILDA AMALRAJ SIDDHARTH KACKER

BRAND MANAGER

FACULTY GUIDE COMPANY GUIDE

IBS, HYDERABAD IGO, ONIDA

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AUTHORISATION

THE REPORT IS SUBMITTED AS PARTIAL FULFILMENT OF THE REQUIREMENT OF MBA PROGRAM IBS HYDERABAD

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ACKNOWLEDGEMENT

I take this proud privilege to acknowledge gracefully the help I received from

different sources in preparation of this report.

I am highly obliged to Mr. TARUN BHARDWAJ, the National Head of IGO

(onida) India for providing me the opportunity to undertake my summer internship

program at IGO (ONIDA). I am deeply indebted to my company guide, Mr.

SIDDHARTH KACKER, the Brand Manager, for giving me time out of his busy

schedule to help me gaining an insight into the working corporate sector.

I genuinely offer my sincere regards and heartfelt gratitude towards my faculty

guide, Prof. HILDA AMALRAJ for her immense guidance at every step towards

the fulfillment of the project and for her continuous support and encouragement

during the entire term of the summer internship program and taking care of even

the smallest intricacies of the project.

I also convey my gratitude to the Management of IBS- Noida for providing the

infrastructure to help me in accessing the required necessary data.

Last but not the least; I extend my thanks to all my colleagues for the assistance,

support and the suggestions, which have been valuable to me, and for providing a

friendly work atmosphere with healthy competition throughout the project.

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TABLE OF CONTENTS:

S No. Particulars Page No.

1. Executive Summary 7

2. Scope 9

3. Company History 10

4. Product information 12

5. Plan of Action 16

6. Project Description 17

7. Objective of the project 19

8. Research methodology 20

9. Market Analysis

Market share 26 Target customer 27

10. Market Survey 29

Analysis of personal selling 30 Analysis of dealer visit 32 Preparation of questionnaire 42 Limitations of Questionnaire 44 Analysis of questionnaire 45 Key interpretations 50 Factor Analysis 51

11. Marketing Plan 57

Long term strategies 58 Short term strategies 60

12. Implementation 64

Personal selling 65

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Retail 6613. Results 70

14. Conclusion 71

15. Limitations. 72

16. Questionnaire 73

17. Data sheet 78

18. References 82

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EXECUTIVE SUMMARY

Technology these days has been changing rapidly. Every other day we observe innovations taking place. New products coming in view and thereby are changing the face of how we look at things.

This project deals about a similar kind of product which is new in its inception. “ICook’ the magnetic induction cooker is basically a cooker on which you can cook food easily and quickly, it works on the principle of magnetic induction. IGO as a brand had made this new product “ICook” and planned to launch it in the market.

This project was about making a marketing plan to launch this product effectively in the market and to bring it in the eyes of the customers. A plan was to be developed which could make this product a success amongst the customers and generate the sales for the same.

Since the product was new in technology and people were not much aware of this product the marketing strategy had to be such which not only enforces sales but also at the same time informs the customers about the product and its working first. Marketing plan was developed keeping all these things in mind. Also at the same time we tried to analyze what the consumers expected from this product and what more they wanted in this product. Therefore surveys were conducted for the same.

For selling the product two strategies were mainly adopted that is

Personal selling and Selling through retail chain in the market.

Markets were visited and dealers were selected and contracts were made with them to sell the products in the market. Thus an effective retail chain was developed for the same.

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After the making of the plan it was implemented. Dealers were visited personally and were given special offers and finally roped in to sell the product. Thus a chain of effective and efficient dealers was made in major markets of Delhi who would sell the product. Finally after making the retail chain the project was implemented and brought into affect to generate sales for the company.

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SCOPE

Today we are living in the world of globalization. Change is the only that is constant today. We see innovations in technology taking place at every step. New and better products are being launched making work easier and quick.

My project also deals with a product which aims at changing the ideal way of cooking your food.

In this project I am working on the marketing plan of the product I cook launched by the brand IGO recently. I plan to make a strategy to market the product to its target customers. Hence I will focus my study on analyzing the current market scenario for the product by basically focusing on four aspects:

1. Product view

2. Business view

3. Marketing plan

4. Implementation of the plan.

Thus the project focuses on bringing the product in the eyes of the target customers in best way possible and generating sales for the company.

Objective: 300 sales of I cook in the one month.

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Company history

ONIDA

It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay Mansukhani started a company called Onida with just a goal of manufacturing television sets and going beyond convention. By the end of that year, we started assembling television sets at our factory in Andheri, Mumbai. With the passage of time, superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a household name. What really sets Onida distinct from others is that we have always tried to pave our own road and create a niche by understanding what exactly does the consumer need.

After having established a reputation for being an intelligent and pioneering innovator in the application of technologies: we were the first to launch the Webcruiser TV, the world’s first built-in Internet TV which offers the benefits of a personal computer and a TV, and that too, equipped with a modem, printer port and a cordless keyboard with it; the first to launch the ultimate in Flat TV technology with Onida Black with a high picture clarity with DVMC which ensures uniform scanning at the centre and corners of the TV screen.

Again, the Onida Twister was the first TV that turned to face the viewer; we were the first to introduce SRS technology for surround sound in Audioport. In 1999, we were the first to introduce the pure flat TV in the country. The Candy was the first instance of any brand providing a multi-colored cabinet option to its customers.

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IGO

Understanding the growing potential of the Rural Sector Onida decided to come up with a new brand for the rural markets. Thus Onida launched a new brand by the name of “IGO” in the year 2000. With the Lunch of “IGO” Onida entered the rural markets of India. Onida led to the geographical segmentation of its customers with “IGO”. “IGO” was meant to cater the rural markets and it provided products to the rural population at lower prices. “IGO” since then has been building its name in the rural markets and have been successful in catering the rural markets of India.

“IGO” since its launch has been able to make its foothold in the rural markets of India. It has been constantly developing itself at evry stage and has been launching various products for the rural markets at lower price and better quality. Currently “IGO” has come up with three product lines:

1. Color Televisions

2. Washing Machines

3. I Cook

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“I COOK”

“iCook” is a new technology product which has revolutionized the ideal way off coking food in Indian homes that is through the cooking gas. It aims at making cooking cheaper and easy for the people.

“icook” is a magnetic induction cooker which makes food using electricity. It works on the magnetic induction principle. Inside the cooker we have a magnetic setup. When current passes through coil magnetic energy is created. Iron is a bipolar element and gets attracted to the magnetic waves that are created. Its atoms move up and down and this creates heat. This heats the base of the utensil and in turn helps to cook the food. I-cook offers an ultra convenient technology to make your food quickly and easily.

“iCook” make cooking an easy and a pleasant experience. It has been built with various modern features which reduces the work and makes it quick to cook your food. Various features of “iCook” are:

Easy buttons controls

Preset cooking functions (4,6 and 8)

Compact and light weight portable

Timer

LED display

Anti insect design with HI-Q Plate

Automatic on/off

1 year warranty

“iCook” has been launched in three different models:

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1. iCook 21 Touch

2. iCook 20 Plus

3. iCook 19 Plus

“iCook” - ADVANTAGES

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Cheaper than LPG

Cooks twice faster than gas stove

Ideal for Indian food

Works perfectly under AC fan

No flame. No fume. No burns

More convenient, can be set up anywhere

Keeps kitchen cool

“iCook” – DISADVANTAGES

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Special utensils

Multi tasking

Electricity cost

Minimum weight handled

Mental block of the people

“Luxury not a necessity”

PLAN OF ACTION:

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Project description

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Analyzing the market size

Finding the target customers

Analyzing the Competitors

Building the marketing plan

Achieving target sales of 300 in Delhi

Gaining the knowledge about the product

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This project focuses on the marketing plan of the product proposed suitable for the Indian market. It takes into account all the external and internal factors that are needed to be considered and how do we decide on the most appropriate line of action. Getting well versed with the Branding and Advertising strategies a company follows to market its product and sell it to the target customers.

For preparing the marketing plan I will analyze the 4 P’s of marketing i.e.

Product: Understanding the product and its features.

Price: Building a competitive pricing strategy for the product.

Place: Understanding the sales process i.e. the distribution channel best suited.

Promotion: Analyzing and preparing the marketing plan for the product to increase the sales

This project encompasses an in depth study of entire process of making a marketing strategy starting from understanding the customer needs to finding the target market, comparing the competitors, their pricing and product features, advertising your product to finally selling it to the target customer.

For making a marketing plan you need to understand your product in depth also at the same time you need to understand and visualize the problems and the

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competition that you will face in future. Therefore to get a better understanding on this, the project will be divided in four basic parts:

1. Product view: Understanding the product in terms of its target customers, sales process, features.

2. Business view: Checking the business viability of the product in terms of its market share, competitors, pricing strategy.

3. Marketing plan: Strategizing a plan to make customers aware of the product and make sales.

4. Implementation of the plan.

Objectives of the project:

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There are two main objectives of the project:

Learning and analyzing how to make a marketing plan for the product while launching it in the market and analyzing it in terms of the business prospects. What all factors are considered and worked upon to make a successful marketing plan.

To make the marketing plan for the product “iCook” and also implementing it. A target sale of 300 is to be achieved in one month for the Delhi region.

Research methodology:

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For carrying the research for the project work we have collected the data on two bases:

(a) Data collection: Data collection has a huge impact on the proposed methodology since this a live project, so majority of the data collected and used are primary in nature. In case of secondary data there lies one level of interpretation in between the event and its recording but here our data was primary in nature so we have tried to keep error margin very small almost negligible. Hence care is taken on the designing of the data collection tools, drawing inference from the data and henceforth generalizing it. Our primary data collection is mainly based on the survey methodology where we have collected the data from a sample size of 100. Data collected was of two types:

Primary method Secondary method

Primary data: Primary data has been collected on the basis of personal interaction with the consumers and dealers and also on the basis of the questionnaire made and filled by the consumers.

Secondary data: Secondary data has been collected from the company sources which was collected form the company officials as and when required.

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(b)Data Analysis and Interpretation: The data that we obtained from the data collection technique was the raw information. The most important part of the research method was the data analysis part where the raw data was given a structured format. The main aim of data analysis was to reduce size complexity of the collected data, looking for relations between the accumulated data and applying statistical techniques to the data set to generate some result set. These derivations or data interpretations in turn determined the consumer buying behavior of Sony W series at Hyderabad. Here for the data analysis and data interpretation we took the help of SPSS software package and MS Excel. In SPSS we mainly concentrated on analysis of the questionnaire and factor analysis of the data. Through the factor analysis we determined the set of the components or factors why the consumers would buy “ICook”.

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Since the project was about making a marketing plan for the product “ICook” we have studied all the 4 P’s of marketing in order to understand and apply the techniques more appropriately.

MARKETING

Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

The Marketing Mix

Marketing mix is very essential for a product.4p’s of marketing are classifies as:

Product → Solution

Promotion → Information

Price → Value

Placement → Access

. They are the variables that marketing managers can control in order to best satisfy customers in the target market.

The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.

Product

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http://en.wikipedia.org/wiki/Customer_relationship_management

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The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.

Price

Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

Place

Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection, logistics, and levels of service.

Promotion

Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc.

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A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Service/Support

List price

Discounts

Allowances

Financing

Leasing options

Channel members

Channel motivation

Market coverage

Locations

Logistics

Service levels

Advertising

Personal selling

Public relations

Message

Media

Budget

The Marketing Mix

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Product Place

TargetMarket

Price Promotion

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Market analysis:

Market Size:

Before making the marketing plan it’s essential to understand the total market that you have for your product. It gives you a rough idea as to what is the total demand for your product in the market. And accordingly you can set the financial plan for your product’s marketing plan. Total market share for “iCook” was analyzed.

Total Market size for Induction Cookers:

2009-2010 = 600000 units

2010-2011 = 800000 units

Growth = 33.33%

(Source: Company information)

2009-2010 2010-2009

0100000200000300000400000500000600000700000800000900000

Total market size

Total market size

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Target customer:

Target customers are a specific group of consumers at which a company aims its products and services. They are the people who aim to buy your product.

It is necessary to analyze the target customer for your product so that you can place your correctly. We should try to describe them as much as possible based on our knowledge of the product. Some questions we should focus on while identifying the target group are:

1. Are your target customers male or female?

2. How old are they?

3. Where do they live?

4. What do they do for a living?

5. How much do they earn?

Today's consumers are more marketing-savvy than ever before and don't like to be "lumped" with others-so be sure you understand your target market. While pinpointing your market so narrowly takes a little extra effort, entrepreneurs who aim at a small target are far more likely to make a direct hit.

To understand and recognize the target customer for “iCook” a market survey was conducted.

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Target customer categories:

Young employees.

Hostlers.

Bachelors.

Young couples.

Housewives.

Old people.

The target market was decided on analyzing the response of the various categories of customers during the personal selling demonstrations and questionnaire filling. The target customer was also decided keeping in mind the maximum utility of the product can be derived by which segment.

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MARKET SURVEY:For making an effective marketing plan a market survey was conducted to analyze the market in complete sense i.e. in terms of the customers, competitors, network, and effective communication strategy. Market survey was conducted in three parts:

1. Personal Selling –This was adopted to have an opportunity to talk directly to the customers. Since the product is new and conventional customers are needed to be explained of its working. Through personal selling we could identify our target market and also came to know what did the customers thought about the product.

2. Visits to Dealers– This was adopted to identify and analyze the competitors in the market. It helped to analyze their marketing strategy and their pricing techniques.

3. Questionnaire – Getting questionnaire filled gave a holistic idea about the marketing strategy that needs to be implemented. It gave the idea about customers, product and also about the competitors.

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RESULTS DEREIVED FROM PERSONAL SELLING:

For collecting and identifying the target customer I went for personal selling where the customers were given the knowledge about the product face to face. Customers were told the features and were also explained about the working of the product. Later after the demonstrations the customers were asked various questions regarding the product so as to know what they thought about the product and at the same time getting a better insight to the type of customers that are interested in the product.

For personal demonstrations busy market places, hospitals, hostels, housing societies were chosen so as to cater to different segment of customers. Some of the locations were like East of Kailash, Minto road, AIIMS housing society, Rajouri Garden etc. All these sites consisted of various segment of people. This helped to diversify the market survey for recognizing who are the target customers.

All these personal demonstrations to the customers were done to focus on finding the following:

1. Target market

2. What do people think of the product

3. What more do customers expect from the product

The basic points that were recognized through these personal demonstrations were that it gave an insight to the customers mind. Some of the findings were like advantages of the product according to the customers, disadvantages, what more should be added in the product etc.

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Personal selling was the direct interaction with the customers on spot and hence gave a complete knowledge about the customers. It was most affective way to judge your customers as you tend to ask them questions personally and get to know what they think of your product.

The results helped to analyze that as per the customers what features they liked in the product. Also at the same time we got to understand what all were the problems that customers thought they mite come across if they buy the product. These advantages and disadvantages are listed below:

ADVANTAGES:

• Innovative technology

• Quick

• Easy to cook

• Easy to carry outdoors

DISADVANTAGES:

• Special utensils

• Multitasking

• Electricity cost

• Weight

• “ luxury not a necessity

This gave an insight as to what features of the product should be promoted. It also gave us the disadvantages for the product as per customers so that we can cater to these problems. All these results will be used in making the final marketing plan that shall be followed by the company.

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ANALYSIS FOR DEALER VISITS:

Dealer visits were also conducted to have a better knowledge of the market competition. I met dealers to analyze the potential competitors for my product. Also I gained knowledge about the marketing techniques that the competitors have been following to attract customers. Dealer survey was aimed to understand your competitors in three ways:

1. Identifying the potential competitors.

2. Analyzing the market share of each and identifying the market leader.

3. Comparative analyses of the product features.

4. Studying the marketing plan followed by these competitors i.e. advertising policy, pricing techniques.

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Total market size Magnetic Induction Cookers in 2009-2010 was about 600000 units.

POTENTIAL COMPETITORS:

The potential competitors recognized for the product were:

1. Prestige

2. Butterfly

3. Pigeon

4. Bajaj

5. Cookmate

6. Nicecook- Impulse India

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Out of the total Market Size these players have following shares:

1. Butterfly = 28%

2. Pigeon = 23%

3. Prestige = 17 %

4. Bajaj = 7%

5. IGO = 7%

6. Others = 7%

(Source: Company Information).

Thus the market leader at the moment is BUTTERFLY with 28% share.

Market Share

Butterfly Pigeon PrestigeBajaj IGO Others

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A comparative analysis of the competitor’s product features and the pricing strategy was also done so as to analyze what features shall be added to the product and compare the pricing followed by these companies.

This analysis was carried out in a very comprehensive way and the results derived will be used to make the final marketing plan that shall be implemented to achieve the final sales target.

The comparative analysis done is given below for each company with their product features analyzed, their product range and pricing.

(Source for Comparative Analysis: Dealer Visits)

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PRESTIGE

FeaturesTOP PIC 3.0 TOP PIC 2.0 TOP PIC 1.0Micro Crystal panel Micro Crystal panel Micro Crystal panelAnti-magnetic wall Anti-magnetic wall Anti-magnetic wallElegant design Elegant design Elegant designFeather touch button Normal Button Normal ButtonAutomatic start option Automatic start option Automatic start option2000 watts 1900 watts 1800 watts1 year warranty 1 year warranty 1 year warrantyPrice : Rs. 3821 Price : Rs. 3396 Price : Rs. 3056

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BUTTERLFY

Features:

> Touch screen

> Feather touch button> Cooks twice faster than cooking gas> Micro crystal panel> Preset functions> Automatic on\ off function

Price: Rs. 2700 - 3100

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IMPULSE INDIA- Nice cook:

Features:1.1800W/ 2000W/ 2100W2. Self Detection of suitable cookware's3. Self detection of small objects such as knife, fork, and so on4. Self detection of high or low current and switch off automatically.5. Self detection of over-heat, and switch off automatically after beep.6. Self detection of moving cookware and switch off automatically after beep.7. Self detection of operating and if no operation it will give beep sound, and switch off automatically after one minute.8. Special key for KEEP WARM AND SEPARTE KEY FOR SHOWING THE ELECTRICITY CONSUMPTION IN KWH

Price: Rs.3000 – Rs. 3200

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COOKMATE

Features:

>Unique VFD control panel>Touch screen>13 preset functions>Cooks two times faster than cooking gas>95%fuel efficient>No loss of nutrition>Digital fiber>Can be used anywhere>Capacity 30KG

Price: Rs. 2700 – Rs. 3200

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BAJAJ

ICX 7 Induction Cooker- Features

Cooks faster than conventional gas stoves Reliable and long life “Tact” switches Different wattage selection facility : 120W-2000W Timer Delay option: 10 min to 24 Hrs Variable Temperature : 70 ° C to 270° C Displays : countdown timer, wattage and power consumption Auto Shutoff in absence of vessel or empty vessel. Flat clean elegant cook topup and controls Operational in Air conditioned environment Compact and Portable No Fumes, Soot formation/stains/blackening of utensils Easy to operate 8 preset cooking options Well designed internals to avoid ingress of water and insects

MRP: Rs. 2995.00

Special Offer Price: Rs. 2695.00

PIGEON

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FeaturesPREMIO RAPIDO URJATimer Timer Timer

Digital control Digital Display Digital DisplayFeather Touch Buttons Normal Buttons Normal Buttons8 Preset Controls 7 Preset Controls 4 Preset ControlsSingle Piece Crystal Plate Single Piece Crystal Plate Crystal Plate2000 watts 1800 watts 1600 wattsPrice: Rs. 3995 Price : Rs. 3195 Price : Rs. 2795

PREPRATION OF QUESTIONNAIRE:

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Another way through which we tried to reach our target audience was through filling of the questionnaire. A questionnaire was prepared and was got filled by 100 people. It had various questions related to the product and also the personal information of the people like their age, sex and income.

The survey was conducted in two phases:

1. Places were selected where we could cater different segment of people and at the same time could get good response.

2. 100 people were asked to fill the questionnaire which comprised of people of different background which provided balanced viewpoints of all the segment of people.

Questionnaire should be designed keeping in mind the objective of making the marketing plan to promote the product. The primary motive of the questionnaire was to have a holistic view of the marketing plan to be made and implemented. Questions asked ranged from personal information of the consumers like there income, age and also some specific questions related to product and product features. Since the focus is to introduce the product as a consumer friendly and a very useful product the consumer’s point of view is very important. This helped in analyzing whether consumers have heard of the product, what they expected from the product, what features they liked in it, what more they want etc.

The questionnaire extracted the following points which were crucial for making the marketing plan.

AGE:

Age of the consumer is important because it gives an idea what category of people prefer the product more. Since the product is new it is important to analyze what age group of people prefer it the most and accept it readily. Since all age group have different tastes and preferences it is important to find the right age group for the customers.

OCCUPATIONAL DETAILS:

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Occupational details give the buying behavior of the people. Since the salaried class people generally don’t make much of investment and prefer in buying products which are highly useful. Business class people on other hand prefer to experiment and buy the products which are new and are conventional in nature. Since the product is new it is important to find which sector of people prefers the product most. Options also included housewife’s since its cooking product more focusing on them.

ANNUAL INCOME:

Annual income category is important to see what class of people prefers buying the product more. Whether it’s the low income group or the middle income group or o sot only the higher income group people who are most interested in buying the product. It also helps in deciding the pricing strategy for the product.

AWARENESS:

Since the product is new the awareness level amongst the consumers for the product was also tested. This helped to analyze how intensive should the advertising for the product should be and what technique of advertising should be adopted as the product is complex in its use and thus requires a detailed description in the beginning.

PRODUCT FEATURES:

Questions related to product and its features are asked to analyze the features that should be promoted maximum. Moreover this will also help in adding more features to the product in future to make it more customer friendly.

Limitation of the Survey:

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The limitation or the problem I faced during the project are-

Small area for field survey.

Limited time.

Wrong information gives by the respondents.

Non co-operation of people during the field survey.

Limited number of respondents

Due to lack of time and limited resources, the survey can only give a bird’s eye views as not much people were surveyed and each person has different buying pattern.

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ANALYSIS OF THE QUESTIONNAIRE:

AGE GROUP

Less than 1818-3030-4546-65Above 65

The above graph shows that the maximum number of people who responded to the product and were interested in knowing about the product were from the age group of 30-45 and 18-45. This shows that majorly the young couples and the bachelors are more interested in knowing about the product.

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Occupational Details

BusinesssalariedAgricultureHousewifeUnemployed

From the above graph it can be seen that maximum were the salaried people who were interested in knowing and buying the product followed by the housewives and the salaried people.

Annual Income

1lakh-5lakh5lakh-10lakh10lakh-15lakhAbove 15lakh

From the above graph we can see the maximum number of people with an annual income of 5 lakh–10 lakh followed by 1 lakh–5 lakh . this shows that even people with lower income as of 1-5 lakh can be targeted as the price of the product is not very high but the major focus has to be the people with annual salary of 5 lakh to 10 lakh.

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Awareness

yesno

From the above graph we can see that the awareness level for the product is still very low. A lot has to be done to advertise the product in a right way as major chunk of people are still not aware of the product.

Brand awarenss

PrestigeButterflyCookmateImpulse IndiaBajajPigeonicook

From above graph we see the brand that is maximum heard of. From the people who replied that they have heard of the magnetic induction cookers replied that maximum they have heard of Butterfly cooktops who is the market leader as if now followed by Prestige and Bajaj.

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Use Magnetic Cookers

yesno

The above graph shows that out of the people who have heard of the magnetic induction cookers many of them end up buying the product. This shows that the product is accepted by the people. Therefore it requires more of awareness to be created plus at the same time there is a market for the product which we need to tap from the competitors.

Factor

convinience advertisingfriends and familyproduct features

Above graph shows the factor that actually forced people to buy magnetic induction cookers who actually have it already have it. This shows maximum people bought it because of its features and technology followed by the convenience.

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features

Twice as faster than gascheaper than gasSafer than gasCan be used anywhereEasy to carry along

From the above graph we try to analyze the feature that was maximum liked by the people. This shows that people liked that it is twice faster than gas followed by that it is cheaper than gas and that it can be used anywhere. This helps us to show the features that should be promoted while making the advertising strategy.

Agree to buy

yes no

From the above graph we see that maximum numbers of consumers who get to know about the product are ready to buy the product. This shows that there is a market for the product if the consumers are made aware of the product. Thus there is a scope further expanding the existing market.

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KEY INTERPRETATIONS:

Most of the people who responded to the products were young and middle age people.

Most of the salaried employees were keen in knowing about the product. Most of the people who were interested in the product were having an

annual income oh 5 lakh to 10 lakh. The awareness for the product is low. The most prominent brand in the market is butterfly followed by Prestige

and Bajaj. Most of the people who have heard of the product like buying it. Most of the people buy it due to its features and convenience. Most of the people liked that it is cheaper and safer than gas. Also that it can

be used and carried anywhere. Maximum number of people who are informed about the product are

interested in buying the product. Therefore we have an opportunity to increase the market for the product.

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FACTOR ANALYSIS:Factor Analysis through SPSS was carried on the project. Through factor analysis we try to look what are the major factors that would push customers to buy the product more. For this 11 major factors of the product were collected and listed and people were asked questions on them makin them to answer as to what they think are the important features of the product according to them. Giving us a result in the form of ranking listing the most important and vital features that according to the customers are the features that they would like to buy the product for. These factors are listed below:

1. Cheap2. Fast3. Safe4. Easy to cook5. Can be used in open6. Convenient to carry7. Ideal for Indian food8. Busy life’s9. Works under AC and fan10.Technology11.Utility

Next we see and analyze the results for the factor analysis table wise.

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The result of factor analysis is given in following table:

Correlation Matrix

1.000 .851 .136 .742 .810 .624 .215 -.401 -.395 -.393 .155

.851 1.000 .103 .592 .657 .558 .184 -.300 -.329 -.298 .120

.136 .103 1.000 .015 .076 .070 .787 .120 .059 .051 .908

.742 .592 .015 1.000 .618 .472 .085 -.260 -.289 -.321 .067

.810 .657 .076 .618 1.000 .453 .103 -.317 -.312 -.249 .129

.624 .558 .070 .472 .453 1.000 .122 -.310 -.277 -.283 .076

.215 .184 .787 .085 .103 .122 1.000 .017 .017 -.006 .719

-.401 -.300 .120 -.260 -.317 -.310 .017 1.000 .749 .798 .109

-.395 -.329 .059 -.289 -.312 -.277 .017 .749 1.000 .703 .062

-.393 -.298 .051 -.321 -.249 -.283 -.006 .798 .703 1.000 .067

.155 .120 .908 .067 .129 .076 .719 .109 .062 .067 1.000

Cheap

Faster

Safety

Easy to cook

Can be used in open

Covinient to carry

Ideal for Indian Food

Busy lifes

Works under AC and Fan

Technology

Utility

CorrelationCheap Faster Safety Easy to cook

Can be usedin open

Covinientto carry

Ideal forIndian Food Busy lifes

Works underAC and Fan Technology Utility

There are highly correlations among cheap, Faster, Easy to cook, Can be used in open and Convenient to carry. It is expected that these variables correlate with same set of factors. Like wise, there is high Correlation among Safety, Ideal for Indian Food, Utility and similarly between Busy life’s, Works under AC and Fan, Technology.

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KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .778

Bartlett's Test of Sphericity

Approx. Chi-Square

832.017

df 55Sig. .000

The null hypothesis that the population correlation matrix is an identity matrix is rejected by Bartlett’s test of sphericity. The approximate chi-square is 832.017 with 55 degrees of freedom which is significant at the 0.05 level. The value of the KMO statistic is 0.778 which is greater than 0.5 this shows that the correlation between pairs of variables can be explained by other variables, Thus factor analysis can be considered an appropriate technique for analyzing correlation matrix.

Communalities

Initial ExtractionCheap 1.000 .928Faster 1.000 .765Safety 1.000 .935Easy to cook 1.000 .669Can be used in open 1.000 .720Convenient to carry 1.000 .512Ideal for Indian Food 1.000 .798Busy life’s 1.000 .870Works under AC and Fan 1.000 .793Technology 1.000 .837Utility 1.000 .884

Extraction Method: Principal Component Analysis.

Communalities indicate the amount of variance in each variable that is accounted for. Initial communalities are estimates of the variance in each variable accounted for by all components or factors. For principal components analysis, this is always equal to 1.0 (for correlation analyses) or the variance of the variable (for covariance analyses). For other extraction methods, these values are the proportion (for correlation analyses) or the amount (for covariance analyses) of variance accounted for in each variable by the rest of the variables. Extraction communalities are estimates of the variance in each variable accounted for by the factors (or components) in the factor solution.

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Thus we see that in the extraction method the variance in a factor accounted by other factors is highest for the Safety factor followed by Cheap and Utility.

A scree plot is a plot of the eigenvalues against the number of factors in order of extraction. The shape of the plot is used to determine the number of factors. Generally, the factors we keep are the ones on the steep slope. The ones on the shallow slope contribute relatively little to the solution, and can be excluded. Therefore from above Scree Plot we observe that Cheap, Faster and Safety are the most important factors for determination.

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1110987654321

Component Number

5

4

3

2

1

0

Eig

en

va

lue

Scree Plot

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Component Matrix(a)

Component

1

2 3Cheap .917 Faster .810 Safety .917 Easy to cook .742 Can be used in open .775 Covinient to carry .680 Ideal for Indian Food .825 Busy lifes -.641 .557Works under AC and Fan -.634 .530Technology -.631 .572Utility .898

Extraction Method: Principal Component Analysis.a 3 components extracted.

This table reports the factor loadings for each variable on the unrotated components or factors. Each number represents the correlation between the item and the unrotated factor. These correlations can help you formulate an interpretation of the factors or components. This is done by looking for a common thread among the variables that have large loadings for a particular factor or component .Here variables such as cheap, faster, easy to cook can be used in open and convenient to carry have large loadings for factor 1.Similarly, variables like safety, ideal for Indian food, utility have large loadings for factor 2.

It is common to see items with large loadings on several of the unrotated factors, which can make interpretation difficult. Such as in this case Busy lifes,works under AC and fan and technology have large loadings from factor 1 and even factor 3. In these cases, it can be helpful to examine a rotated solution

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Rotated Component Matrix (a)

Component

1 2 3Cheap .926 Faster .856 Safety .965 Easy to cook .807 Can be used in open .837 Covinient to carry .690 Ideal for Indian Food .887 Busy lifes .907Works under AC and Fan .863Technology .894Utility .935

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

a Rotation converged in 5 iterations.

Comparing this matrix with the unrotated solution, before rotation, most variables loaded highly onto the first factor and the remaining factors didn't really get a look in. However, the rotation of the factor structure has clarified things considerably: there are three factors. Now variables busy life’s, works under AC and fan and technology have major loadings for factor 3.

Now we see in component 1 cheap, faster, easy to cook and can be used in open are important variables thus [people focusing on

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MARKETING PLAN:The marketing plan that is being made and implemented will be based on the results derived from the market survey done. All the interpretations made from:

1. Personal selling experience and direct feedbacks from the customers.

2. Meeting and feedback from the dealers.

3. Analysis of questionnaire.

Major problems identified and catered:

1. Creating more awareness of the company’s product and creating new market for the company – LONG TERM.

2. Increasing the current market share by making a better foothold. For this a comparative analysis of the competitors was done, consumers were asked for their feedback so that necessary changes can be brought in – SHORT TERM

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LONG TERM STRTERGY:

Long term strategy is basically to increase the consumer awareness of the company’s product. Therefore we are focusing on the some techniques through which we can make customers more aware of the product. Since the product is new and is complex in working we are focusing on a forum where we can educate the customers on the product at length. Therefore we have taken internet as the medium for now. Since internet id growing in popularity these days with a lot of people visiting it everyday it can serve as a good medium for educating the customers.

Some of the suggested internet tools are given below:

1. Article Writing: One way to create awareness of your brand, is to write articles on well known forums. This is known as article marketing. It is very beneficial for creating goodwill, as well.

2. Internet advertising: Internet marketing is about advertising your products on the most common forum on communication that is through internet.

Internet advertising basically comprises of three types:

Banner Ads: these are pictorial ads that can be seen on populated websites and these commonly include a hyperlink to the owner’s site. The price for

this depends on the number of ads shown.

Sponsorship ads: These are bigger that banner ads and contain a lot of text as compared to the banner pictorial ads. These are mostly placed on popular websites and online newsletters. They are priced according to the readers of the website where the ad is placed.

3. Pay-per-click (PPC) ads: These ads are placed on websites, which get a lot of traffic. These ads can be text or pictorial ads. They are priced

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according to the number of click they generate.

3. Search ads: In Internet marketing, Search Advertising is a method of placing online advertisements on Web pages that show results from search engine queries.

4. Viral marketing : Another form of internet marketing. This includes like sending e mails to a host of people and they sending it forward to their friends and colleagues.

5.Telemarketing: Telemarketing is basically introducing your product to your customers on phone and inviting them for a demo. It may also include a frequent reminder in the form of a sms.

6. Print ads: Giving AD’s in the newspapers and magazines to make your customer aware about the products.

7. Home Shoppe: These are the serials that we see on various products on television. They explain the products of the company and are watched by a lot of housewives.

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SHORT TERM STRATERGIES:

For short term strategies we studied the competitors and also tried to analyze the changes that can be brought in the product.

For short term we have focused on five major parts as if now. We shall incorporate more strategies as we are still working on them. As if now we have analyzed it from five basic points:

1. Network to be adopted.

2. Features to be promoted.

3. Promotional strategy.

4. Pricing.

5. Product development.

All these techniques are suggested and shall be implemented only on discussion finally. The plan suggested as per now is discussed below.

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1. Network Adopted:

Personal selling because of

1. New technology2. Proper product information required3. Complex usage

Manufacturer à DistributorsàRetailersà Customers Because

1. Allows you to operate on 100% cash basis.

2. Helps you to cater the markets where there are not many retailers, thereby a distributor can easily supply to these markets.

2. Features to be promoted:

• Quick-less time and busy lives

• Convenience

• Cheaper than LPG

• No loss of nutrition

• Preset cooking buttons

• Easy to carry

• Ideal for Indian food cooking

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3. Promotional Strategy:

For short term the technique suggested for making the product more visible to the customers is PERSONAL SELLING. This is because since the awareness is low and it requires a lot explanation regarding its working.

4. Pricing:

I cook Prestige Butterfly Bajaj Pigeon Nice cook Impulse India

3490 - 4490 3000 – 3800 2700 - 3800 2995 3995-2795 2500 - 4000 3000-3200

Suggested changes:

1. Prices in comparison are high.

2. Special discount offers provided by the competitors.

3. Free utensils given

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5. Product Development:

Suggested changes in the product are done on the basis of the analysis with competitors and through the direct feedback from the people.

1. Increase the weight handling capacity of the product which is now 8 liters.

2. Increase the number of stoves so at to make the product useful for multitasking.

Since the sales are to be generated in one month the major focus shall be on the implementation of the short term strategies and gaining the share of the competitors by bringing the changes in product or the advertising plan of the company.

Since the short term strategies are still being worked upon the further plan of action would be finalizing on the short term strategies and then finally implementing the plan to achieve the target sales.

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IMPLEMENTATION:

The last stage of the project was to put in action the Marketing Plan that was finally made. The Plan was made after carefully analyzing the results from all the Market Surveys conducted in the earlier part for the project. All the results were carefully studied and analyzed so that an effective Marketing Plan could be built.

The Plan was made keeping in mind the very basic objective to increase the sales for the product in the company and increasing the Market share for the company. The basic motive was to make the presence of the brand felt in the market and makes the consumers aware of the product and converts this knowledge into sales.

As discussed above we have divided the plan into short term strategies and long term strategies. As if now in this stage short term strategies were implemented to increase the sales. Long term strategies shall be implemented with time as well.

After carefully analyzing all the results it was decided we may adopt two short term strategies to bring the product in notice and increase the sales for the product.

1. Direct Selling

2. Entering the Retail Market

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PERSONAL SELLING:

Personal selling is about individual sales agents reaching and dealing directly with clients. The inherent features of direct selling are word-of-mouth advertising, flexibility and performance-related rewards.

Personal selling was adopted keeping in mind that the product was new in inception and that customers were required to be told about the product. So it was intended to meet the customers directly and educate them about the product. We had put canopies in busy market places in Delhi, residential areas, government offices, defence offices; hospitals, BPO’s etc wherever we thought we could pitch in the product and meet maximum customers for demonstrations. We met people got orders as well.

Through personal selling we were able to meet our customers directly and also introduce them our product and understand there opinions of the product. The product was sold to the customers directly by the distributors of the company. Through this we were able to makes sales but we were still not able to meet the targets much. So it was required to follow something more than just selling our product through Personal Selling. Therefore as a short term strategy we decided to built up a network as well and enter the retail.

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RETAIL:

After trying Personal Selling as a strategy we decided to go a step further and make a mark it market through retailers as well. Before entering into retail a proper study was carried out to analyze the path that need to be followed while entering the market.

A proper channel for entering the market was to be chalked out. For this we studied two channels that could be followed:

1. Manufacturerà Retailerà Customers

2. Manufacturerà distributors à Retailerà Customers

Second channel was selected to carry on the business and to enter the market over the other because:

It helps to work on 100 % cash basis. It helps to enter the innermost markets where there is not much company

factories therefore by having a distributor you can cater all such markets easily.

It is more convenient to deal. Plus distributors have already a built in network which helps the companies

to easily place there product in the market.

After deciding the channel to be followed came the most important part of building this network for the company.

This required selecting the markets that covers your target customers the most. After deciding the markets it required to find the dealers that were having a hold in those markets places plus at the same time meeting those retailers and ask them to market your product.

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For approaching the dealers a special pricing strategy was developed to persuade them to market the product for the company. Special dealer prices were decided providing higher margins to the customers and at the same time providing them something extra in comparison to the competitive brands available in the market. For deciding this strategy a proper analysis was done of all the major markets of Delhi. Competitors and their strategies were analyzed and a plan was made keeping in mind the extra edge that was suppose to be made to kick off the sales of the product of the company which was entering the retail market late in comparison to the other brands who were already established.

To make sales in the retail sector you need to have a really strong network so that you market your products in all major areas of the city. Once an effective network is built you can sell your product through the network efficiently. The retailers may place orders to distributors who in turn buy the product from the company and hence it generates sales for the company.

Hence the major focus of implementing the plan was to build this network for the company and finding some dealers in all major markets of Delhi who would like to do the business with the company and sell its products.

For building this network 5 major markets of Delhi were visited and all the major dealers in these markets selected.

These markets were Rajouri Garden, Central Market, Saroujni Nagar, Patel Nagar and Karol Bagh. These markets were selected keeping in mind the customer profile visiting them and the target customers we were aiming for.

After selecting the markets the next step was to meet the dealers in these markets and introduce the product to them so that they start selling the product in the market. For this a special pricing strategy was developed which was made for the dealers to attract them to do business with us. This helped to build a chain through the company will route its product in the Delhi markets.

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Selecting the target markets markets

Analyzing the dealers and selected them

Introducing the product and convincing them to market it

Selling the product through the dealers

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Since the company was initially only into selling the product through direct selling entering into retail was completely a new dimension and strategy that was adopted by the company. The basic motive here for visiting all the markets and finding right dealers was to make a long term sales network through which company could sell the product in the long term. This will help the company to increase the sales for the product and at the same time will help to make people aware of the product.

Therefore in order to make an effective chain of retail for the company the right markets were selected and right dealers were found out so that the presence of the brand can be made felt entirely in the Delhi region.

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Results:

Plan was built keeping in mind the fact that company wanted to sell its product “ICook”. The plan was built to increase the sales of the product in the market and at the same time to build a network which can help the company to build in a strong retail chain for selling its product.

The result after the implementation of the plan was:

The product of the company came into notice and people became aware about the product.

An effective retail chain was built. A number of probable dealers were roped in.

The dealers selected after the implementation of the plan agreed to sell the product of the company and finally an effective retail chain was built. 5 dealers were selected from the different markets visited. The product was introduced to them and they were provided special dealer margins by the company. They showed the interest in dealing with the company. Now the company shall take it forward and the final agreement between both the parties shall be done.

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CONCLUSIONS:

Since the project was based on making a complete marketing plan for the product “I COOK” it required a detailed study for the company. The project basically helped the company in analyzing and understanding:

1. The existing competition.

2. Identifying the target customer.

3. Pricing strategy to be followed.

4. Understanding the product features.

5. The retail channel to be followed.

6. An effective retail channel was formed for the company which will be proved beneficial to the company in the long run for carrying its business.

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LIMITATIONS:

Due to the limited period of time the sample size will be small for the customers and dealers and will focus only on the customers of Delhi and NCR.

Certain company information will be analyzed during the project which may not be discussed due to the company norms.

Since the product is new not much market analyses is available. All the competitors are small and new for the product so much data is not

available.

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Attachments: Questionnaire

SURVEY

NAME: SEX:

MARITAL STATUS:

1. Which age group do you belong to:

a) Less than 18 years b) 18-25 years c) 26-45 years d) 46-65 years e) above 65 years

2. Present occupational details:

a) Self employed/Business b) Student c) Housewife d) Agriculture

e) Salaried f) Others

3. Annual Income:

a) 1-5 lakh b) 5-10 lakh c) 10-15 lakh d) above 15 lakh

4. Have you heard about Magnetic Induction Cooker?

a) Yes b) No

if Yes, then from which company?

a) Prestige b)Butterfly c) Cook mate d) Impulse Indian e) Bajaj

f)pigeon g) iCook g) Any other, company name: _____________

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5. Do you have a magnetic induction cooker at home?

Yes NO

6. If yes, which was/were the main factors that influenced you to take the Magnetic Induction Cooker of the said company?

a) Convenience b) Advertising c) Product Feature d) Friends and family.

7. What are the features that you liked in “I Cook”?

a) Twice as faster than gasb) Cheaper than gasc) Safer than gasd) Can be used anywheree) Easy to carry along

8. What other features would you like to see in “I Cook”?

9. If no, would you like to buy “I Cook” now?

Yes NO

10. a I will surely prefer to buy the “ICook” if it is cheaper than gas

1. Strongly disagree2. Disagree3. Neither agree or disagree4. Agree5. Strongly agree

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b. Safety is very important feature of this product


c. I would like to buy “ICook” because it can be used in open services.


d. Ideal for Indian cooking makes it good option to buy


e. Can be used in open is another important feature


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f. “ICook” makes cooking easy


g. It is ideal for people having busy life’s these days


h. Provides utility for money


i. “ICook” is convenient to carry makes it even more lucrative


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j. “ICook” is a new innovative technology

1. Strongly disagree2. Disagree3. Neither agree or disagree4. Agree5. Strongly agree6.

k. “ICook” can be used under AC and fan makes it a good buy


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DATA USED FOR FACTOR ANALYSIS

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References:

PHILIP KOTLER KEVIN LANE KELLER ABRAHAM KOSHY MITHILESHWAR JHA, 2009.Marketing Management 13th Edition. India :Pearson Pentice Hall

LUTHER WILLIAM M., 2001.The marketing Plan: How To Prepare And Implement It [Online] 3rd Edition. United States of America: Amacom

MAX SUTHERLAND ALICE K.SYLVESTER, 2000.Advertising and the mind of the consumer [Online] 2nd Edition. Australia :Allen & Unwin

RANDALL GEOFFREY ,2001.Branding:A practical guide to planning your strategy [Online] 2nd Edition .London: Kogan Page Limited

Websites:

www.onida.com

http://www.entrepreneur.com/encyclopedia/term/82498.html

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http://www.entrepreneur.com/encyclopedia/term/82498.html

http://www.onida.com/

Sahil Thakur Final Report 0719 (1)

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