STP Strategy
Spray-it
Group 4
Ron Quadros, Calvin Pinto, Malcolm Pinto, Rochelle Rodrigues, Ganesh Prasad
Segmentation
Segmentation in this case is on the basis of benefits. Our segment
would be the percentage of the population in India who desire instant
relief from itch.
Targeting
Spray-it is targeted to an audience in India who desire relief from
itching. In a humid country like India, the skin has a tendency to sweat
a lot. As a result, the need to itch increases, and this could lead to an
embarrassing situation due to the social stigma attached to it.
Most creams and powders in the market generally leave a stain on the
clothes while applying and they also fail to provide instant relief,
however Spray – It with its special formula instantly provides relief and
cools the affected part.
Demographics:-
It will be targeted to users in the upper middle and upper income
groups, especially those who are in the professional & working class.
Geographic’s:-
Since we are a small time player, we will be targeting just the main
metros in India, as initial demand for this product is necessary for the
success of this enterprise. After this we will expand to ter-1 and tier-2
cities respectively.
Psychographics:-
Here, we hope to provide a convenient solution to the professional
class who might have a problem with using an itch-guard during
working hours. They may want to gain a quick, easy and stain-free
relief from itch.
Positioning
We hope to position Spray-it on the basis of the benefits the product
offers.
1. It is stainless
2. Instant relief
3. Available in 2 sizes(25ml & 50 ml)
4. Is compact and can be placed in a bag
We want to show that our product is more convenient to use than all
the other players in the market, as all the user needs is 1 finger and a
few second to apply so as to relieve him/herself from any itch(as
opposed to other products that that take a couple of minutes for
applying).
Break Even Analysis
At Breakeven Point,
Total Revenue = Total Cost
Price x Quantity = TFC + (VC XQ)
68 X Q = 300, 00,000 + (10 X Q)
Q = 300, 00,000
68 – 10
Q = 517,242 units
Costs break up (Approximation)
Fixed Cost
Rent 12,
00,000
Raw Materials
80, 00,000
Machinery (Lease) 60,
00,000
Office Salary 30,
00,000
Logistics 100,
00,000
Maintenance 18,
00,000
Variable Cost
Wages
3/unit
Electricity 3
Overheads 2
Marketing and Promotion 2
Estimation of Cost of serving market segment
Year 0 (In
Particulars lakhs) year 1 year 2 year3 year4 year 5
Sales Revenue 0 340 420 480 550 650
COGS 0 250 280 300 320 380
Gross Margin 0 90 140 180 230 270
Development costs 25 0 0 0 0 0
Marketing costs 0 100 110 150 180 200
allocated overheads 0 20 25 28 30 35
Gross Contribution -25 -30 5 2 20 35
supplementary contribution 0 0 0 0 0 0
Net contribution -25 -30 5 2 20 35
discounted contribution -25 -23 2 0 10 15
cumulative discounted cash
flow -25 -48 -46 -46 -26 -25
Note: Sales Revenue is based on the assumption that sales in the first year will be around
5 lakhs units
MARKETING MIX:
Product:
Spray It is a spray that provides relief from ‘itching caused due to
sweat retention, moisture in the folds of the skin (groin, underarms,
waist, beneath the blouse-strap, etc.) tight garments, warmth and
friction’. This is clinically described as ‘Intertrigo’ – a common problem
having high occurrence in tropical conditions.
It also provides relief from other soars, burns, rashes, irritation of skin
and bruises, etc.
Spray It is available in 2 sizes -20 ml and 50 ml designed as a spray to
provide “instant’’ relief by spraying on the infected area. It is
convenient to use, has no side effects, provides “time-utility” and
provides ease of application.
Price:
20 ml sized bottles- Rs. 50/-
50 ml sized bottle- Rs.80/-
Promotion strategy:
Objective:-
Position Spray It as a specialist spray for relieving sweat-itch
Broaden user base by addressing both serious and non-serious
sufferers.
Address how Spray it can better the quality of life of the sufferer
by relieving him/her from ‘discomfort caused due to the inability
to scratch’.
Qualify relief provided by Spray It to be ‘quick’ or ‘instant’,
thereby, repositioning other solutions.
Show convenience of usage and how our product is different
from others.
To portray the problem of itching as a problem faced by men,
women as well as kids. This product is suited for all types of
people.
This product being new to the market we intend to undertake an
aggressive promotion strategy. This would be through:
Television advertising which conveys the benefits of using the
product and the instant relief it provides.
Advertising through billboards and hoardings displayed at
prominent places like railway stations, highways, on buses and
on trains.
Use of wall paintings and posters at small shops, near markets
and post offices.
Advertising in newspapers and in men and women’s magazines.
Practical demonstrations with the help of mobile vans that will
display the uses of the product to the masses.
Demonstration to doctors, skin specialists and skin diseases
treatment centers and selling the product through their
recommendations.
Sponsoring any local sports event and display of the product at
these events.
PLACE (Distribution) Strategy:
Distribution majorly through chemists.
Tie-ups with skin specialists and skin ailment treatment centers.
People could purchase directly from the company through mobile
vans.
Dialing a number provided on the websites and in newspaper
ads. Home delivery will be provided on order of minimum of 6
bottles (20 ml).
