V–Guard Big Idea

Business PlanTeam BG09

2009

2014

1996

• Kerela based company

• Electronics• Electro-mechanical• Other - Household

• Market share > 50% in South

• Total sales revenue – 85% in South and 15% in North market

2010

2012

Current trends • Electricity shortage• Cap on gas cylinders• Product Knowledge

• Expedient and convenient• Network of customers.• Expertise in communication,

installation and maintenance. • Rapid order and delivery• Point of Purchase, Word of

Mouth, Direct Sales

Product Portfolio

stabilizer

pumps

water heater

digital ups

fan

lt cable

ups

solar water heater

Mission: Establish presence

in North and emerge as a

market leader for

electronics.

Focused market research

and aggressive sales

strategies to empower

competition.

About the Company

Current Market Scenario

Impact of Power Crisis in the North

Urbanization in the North

Entry of International Brands

Consumer Knowledge

Prevalence of Gated Communities

Brand Loyalty in the South

Restriction on Gas Cylinders

Market Segmentation

Sales Based Segmentation

AP, Manipur, West Bengal

Gujarat and Maharashtra

Needs-Based Segmentation

Rural UrbanStructural Segmentation

North East Region Western Region

Product/Service Innovation Marketing and Sales Strategy

Advertisement and Promotion

Forecasted Financial

StatementMarket Research

UPS Inverters

Study Your Competition - Research

Domestic CompetitionSu-KamMicrotek

Target MarketHouseholdIndustryRural Sector

Identify ProblemBeep soundAfter purchase serviceBulky design

Feasible SolutionVoice overService through electronic mediaSleek Tabletop Design

Price AnalysisRs.5000 to Rs.8900

Sales StrategyGated CommunitiesIndustriesRural Areas

Distribution channelRetail outletsContracts with buildersWholesalers

Medium of ResearchQuestionnaireTelephone callsOnline review

Think Different – Innovation

•Voice over•Changing modes1

•Customer service•User Interface2 •Sleek Design

•Usability3

Extendable loft for battery

Tabletop to place mobile phones/magazines

Plug SocketsHandle bar

• Inverter On – specifies when the electricity is cut, and inverter is in working mode

• Inverter Off – specifies when the electricity is back on and inverter is in dormant mode

• Battery Low – specifies when battery is low and needs to be charged

• Inverter Overload – specifies when the consumption of power is more than specified

• Power Off – specifies when the inverter is switched off

• SMS Service – Register complaint

• Facebook/Tweet -- Feedback/complaints

• Customer Hotline – 24/7

• Discussion Forum – Expert advice

• User Interface – Suggested inverter depending on the inputs

• Aesthetic appeal

• Table top for gadgets

• Power socket for charging mobile phones and laptop

Action Plan - Sales

Sales Strategy

Gated Community

Urbanization and Brand Identity

International Industries

Consumer Knowledge

Contracts with real estate• Contracts for long term relationship• Promotion through kiosks and demonstration• Good margin for urban sector

Retail outlets and Office Buildings• Setting up inverters in high raised buildings• Brand recognition through retail showrooms in the

city• Local retail stores near rural areas

Manufacturing units and showrooms• Insight about electricity outage• Competitive pricing and promotion

Rural haats and LIC model• Product knowledge and demonstration• Referring potential consumer

for commission on sale

Market Research

Sales Strategy

Advertising and Promotion

Forecasted Financial

Statement

Stabilizers and LT cables

Advertising

Promotion

Identify

problem

Target Market

Feasible

solutionDistribution

channel

Identify problem

• 80% consumer - poor knowledge on brands

• Advised by retailers or sales person

Target Market

• Electrical companies • Retail outlets• Price range – Rs.800 to

Rs.7500

Feasible Solution• Boosting morale in

retailers• Ensuring availability of

products• Tie up with other products

to increase sales

Distribution Channel

• Retailers• Wholesalers• Direct sales to

construction companies

Advertising & Promotion

• Retail outlets• Print adds• Media advertising

Market research

Study Your Competition - Research

Sales

Achieve sales target – CommissionIncentives – Bonus prizes and vacation

Mobile SMS – Notify stock of itemsIRS System – Record transactionsInteraction – Quarterly meetings

Inverters – LT cables in Real Estate and IndustriesHousehold appliances - Stabilizers along with Fridge, TV

Tie UpRetailers

Availability

Sell Different – Action Plan

Product/Service Innovation Marketing and Sales Strategy

Advertisement and Promotion

Forecasted Financial

StatementMarket Research

Induction Stove

Market Segmentation

Sales Based Segmentation

Tamil Nadu, Kerela, Karnataka

Needs-Based Segmentation

Urban MarketStructural Segmentation

Southern Region

Study Your Competition - Research

Domestic CompetitionPreethiTTK Prestige

Target MarketBachelorsMarried CouplesJoint Families

Identify ProblemLess KnowledgeConsumes ElectricityTraditional Method

Feasible SolutionBattery BackupGreen User ManualE-Learning Tutorial

Price AnalysisRs.2000 to Rs.8500

Sales StrategyTrade ShowsLive DemonstrationE-Marketing

Distribution channelRetailersDirect SalesE-Marketing

Medium of ResearchQuestionnaireTelephone callsDistributors

Understanding the Product

Taking Advantage of

E-Marketing

Free Offers

Action Plan - SalesSpecialized Market• Trade shows• Exhibition• IT Offices• Shopping Malls

Social Media• Shopclues.com• Snapdeal.com• Pepperfry.com

Offers• Complementing utensils• Free detergent and scrubs

Power backup1 Green

manual2 E-learning tutorials3

• Battery Backup – 20 minutes power backup during power cut• Niche Market –

Additional feature for a higher price

• Consumers less energy than gas cylinder

• Go Green user manual- Tips and instructions on how to use induction cook tops to save energy

• Example: Use of utensils

Time to cook type of food

• Visual scenarios and interactive sessions – Educate the consumers on how to use the induction cook tops

• Cd-Roms and You Tube – Provided along with the product

Think Different - Innovation

ADVERTISING AND PROMOTION

Induction chef contestSouth India contest for the best chef using induction cook tops

• Registration-Should create a recipe using V-Guard’s induction cook tops and post the video on You Tube.

• Collation: This will result in many You Tube posts of V-Guard’s induction stove.

• More Click, More Views - This promotes viral marketing through social media

• Advertisement - Contest details during TV shows with highest TRP ratings such as famous TV serials

• Print Ads – Newspaper and Magazine

Viral Marketing

Retail Showrooms

TV and Print

Ads

Organizational Chart - North

North Regional Manager

Sales Manager

Website Co-ordinator

Social Media Manager

Marketing

Internet Marketing Manager

Marketing Manager

Marketing Executive

Copywriter/Visual

Designer

Sales

Chief Marketing Officer - South

Customer Service Representative

Sales Executive

Customer Relationship

Manager

Financial Plan

• Conservative approach

• 20% increase in Profit in a span of 3 years

• Keeping in mind - policy paralysis and worst case scenario

Financial Plan

• Brand Awareness – Low in North

• New Market Segment – South

• Existing Competitors – Brand Loyalty

• Demand is high – Penetrative Pricing

WEAKN

ESS

• New Entrants in to the market

• Expansion of existing brands into the same segment

• Low Margin of sales due to high competition

THREATS

SWOT – Where do we stand?

SWOT ANALYSIS

Competitive Advantage – Unique Product/Service Innovation

Advantage of Current Trends Electricity and cap on gas cylinders

Aggressive Sales Strategy Competitive Pricing

Models

STRE

NG

THS

• Urbanization – More international companies setting foot in India

• Go Green – Demand for solar UPS and low consumption of energy

• Use of various types of Social Media and Online MarketingO

PPO

RTU

NIT

IES