solution to the case study on helter & skelter .. a leading anti termite company of USA trying to get into Indian market

1. A business plan for expanding
Helter Skelter’s market in “ INDIA”

2. INTRODUCTION
HELTER SKELTER ,Inc., WAS ESTABLISHED IN 2011.
IT IS A TEXAS BASED COMPANY.
IT DEALS IN TERMITE EXTERMINATION.
MONOPOLY IN ITS FIELD .
A POSITIVE ASPECT OF FUTURE MARKET GROWTH.

3. MISSION STATEMENT
“We Make A Difference Through Our People, a
Team Of Dedicated Professionals Who Value
Our Clients, deliver On Our Commitment And
Contribute To Sustainable Development……”

4. GOALS AND OBJECTIVES
To Enter Indian Market Targeting Households And Real
Estate Builders For Termite And Insect Treatment.
Making People Aware Of This Treatment As 90% Of The
People Don't Know When And How To Go For Such Kind Of
Treatment.
To Enable Builders To Build Healthy, environmentally Sound
Houses That Optimise Residents’ Quality Of Life…….

5. VISION
“We Want To Be The Global Leader In
Delivering Excellence To The Building
Protection System And Restoration
Industry….”

6. TOP 10 SECTORS OF USA
SOFTWARE &IT
19%
FINANCIAL
SERVICES
16%
BUSINESS
SERVICES
16%
INDUSTRIAl
MACHINERY
EQUIPMENT &
TOOLS
9%
COMMUNICATION
8%
TRANSPORTATION
7%
METALS
7%
CHEMICALS
6%
AUTOMOTIVE
COMPONENTS
6%
REAL ESTATE
6%
SECTOR

7. PHARMACH
EMICALS
&
MEDICINAL
CHEMICALS
PAINTS AND
ANTI
TERMITE
PRODUCTS
30%
SOAP,
DETERGENT
AND
CLEANING
PRODUCT
15%
MAN MADE
FIBERS
14%
BASIC
CHEMICALS
10%
CHEMICAL INDUSTRY OF
USA
10%
20%
10%60%
MARKET SHARE OF HELTER SKELTER IN
PAINTS AND ANTI-TERMITE CHEMICAL
PRODUCT
BAYER AG
DOW CHEMICAL
DUPONT
HELTER SKELTER
MARKET WORTH = 5000 CR
HELTER SKELTER’S SHARE= 3000 CR

8. CHEMICAL INDUSTRY STATISTIC AND
MARKET SIZE OF USA 2009-14
•$1700 crREVENUE
•1,11,676EMPLOYMENT
•181BUSINESSES
•5.4%ANNUAL GROWTH

9. SWOT ANALYSIS
STRENGTH
• MOST RELIABLE
COMPANY
• UNIQUE
TREATMENT STYLE
• IMMENSE
GOODWILL
• MONOPOLY
MARKET LEADER
WEAKNESS
•WORKFORCE
TURNOVER
•NO INTERNATIONAL
AWARENESS OF THE
COMPANY
•CHALLENGE IN
TERMS OF NEW
PRODUCT
OPPURTUNITY
•SCOPE OF EXPANSION
•ACCEPTABILITY OF
THE COMPANY IN
INTERNATIONAL
MARKET
THREAT
•NEW COMPETITORS
IN MARKET
•RESTRICTION OF
ENTRY IN
INTERNATIONAL
MARKET
•ENVIRONMENT
POLLUTION CONTROL
AGENCIES
•CONSUMER BUYING
BEHAVIOUR

10. GETTI
NG
INTO
INDIA

11. CAPITAL- NEW DELHI
TOTAL AREA-3287590 KM^2
POPULATION- 121 CRORE
GDP- $2.048 TRILLION
CURRENCY- INR ( INDIA RUPEE)

12. WHY INDIA ?????
TROPICAL CLIMATE ( SUBJECT TO TERMITES)
WORLD’S CHEAPEST LABOUR MARKET.
LIBERAL GOVERNMENT POLICIES.
EMERGING ECONOMY
HEALTHY FINANCIAL MARKET
LARGE INVESTORS

13. MARKET POTENTIAL
0
20
40
60
80
2008
2009
2010
2011
2008 2009 2010 2011
REAL ESTATE CAGR IN
CRORES
50.1 53.3 55.6 66.8
REAL ESTATE CAGR IN CRORES

14. India based
COMPETITORS
TERMINIX Ltd.
NEXT ZEN PEST CONTROL
ORKIN
TRULY NOLEN

15. SELECTING THE TARGET MARKET
TROPICAL CLIMATE
URBAN AREA
ECONOMICALLY
DEVELOPED
WHERE REAL
ESTATE GROWTH
IS HIGH
BUILDERS
CONTRACT
ORS
FOCOUS ON URBAN AREAS
FOCOUS ON AREA WHERE
REAL ESTATE IS EMERGING
FOCOUS ON ECONOMICALLY
DEVELOPED REGIONS

16. SELECTED AREAS AS PER SURVEY
DELHI
KOLKATA
MUMBAI
HYDERABAD
AS PER THE SURVEY INDIAAS
A TROPICAL CLIMATE POSSES THE
REQUIRED QUALITIES WHAT WE
NEED .. SELECTING THE URBAN
AREAS WHICH ARE ECONOMICALLY
DEVELOPED AND WHERE REAL
ESTATE IS GROWING WE GET THESE
4 METROPOLITANT CITIES WHERE
WE WILL TARGET THE BUILDERS IN
OUR FIRST PHASE OF BUSINESS.

17. STRATEGIES (THE 4 - P’S)
PRODUCT
MIX
PRICE MIX PLACE MIX
PROMOTION
MIX

18. PRODUCT MIX

19. NAME- DR. DRE TERMITE SOLUTIONS
PRODUCT DESIGN- 100 & 150 ltr DRUMS
PACKED IN TIN FOR SINGLE USE
NO SPECIAL PACKAGING ( ONLY COMPANY LOGO)
LID BASED DRUMS, NO HANDLES.

20. NEW PRODUCT FOR INDIAN MARKET
NAME- NEW DR. DRE ANTI - TERMITE
PRODUCT DESIGN - 30 & 50 ltr DRUMS
PACKED IN PLASTIC DRUMS FOR MULTI PURPOSE USE
HANDLES IN DRUM FOR MORE CONVENIENT
USE OF MORE COLORFUL PACKAGING WHICH WOULD JUSTIFY STRENGTH AND
PROTECTION.
NEW CHEMICAL ADDITION TO THE SOLUTION WHICH WOULD HELP IN IMPROVING THE
GLAZE OF HOUSE PAINTS AND WILL ACT AS WATER RESISTENT TOO

21. PRICE MIX

22. PRICING STRATEGIES
USE OF BOTH
SKIMMING AND
PENETRATION PRICING
KEEPING LOW
PROFIT
MARGIN FOR
FIRST FEW
YEARS

23. PLACE/ DISTRIBUTION MIX

24. PLACE/ DISTRIBUTION MIX
• 4 METROPOLITANTS
DELHI
KOLKATA
MUMBAI
HYDERABAD
• 4 WARE HOUSES, 1 AT EACH METROPOLITANT
• USE OF RENTED VEHICLES FOR DELIVERING
PRODUCTS

25. PROMOTION MIX

26. PROMOTION TECHNIQUES
ADVERTISEMENT
THROUGH COMMERCIAL
ADS, PAMPLETS, NEWS
PAPAER
DISCOUNT COUPONS
1 ltr FREE ON PURCHASE
OF 150 ltr
CASH DISCOUNT FOR FIRST
5 CUSTOMER
FREE DEMO AND 2 YEAR
WARRANTY

27. BUDGET FOR THE FIRST YEAR
100
CRORE

28. 25%
40%
15%
20%
EXPENDITURE
PRODUCT DISTRIBUTION
PROMOTION OTHER EXPENSES
DISTRIBUTION INCLUDES :-
• ACQUIRING WAREHOUSES AT
4 METROPOLITANT
OTHER EXPENSES INCLUDES
• COST OF HIRING NEW
PERSONNALS
• SALARIES
• STATIONARIES
• BILLS
• RENTS
PRODUCT INCLUDES
• COST OF PRODUCTION
• COST OF EXPORT

29. IMPLEMENTATION
EXPORT FOR FIRST
FEW YEARS RATHER
THEN SETTING UP
PRODUCTION UNIT
4 GROUPS,TOTAL
OF 20 MEMBERS
FOR FIRST FEW
YEARS 1 GROUP
FOR 1 CITY
EACH GROUP SHALL
CONSIST OF A
ZONAL MANAGER,
HUMAN RESOURSE
MANAGER,SALES ,
MARKETING AND
FINANCE
MANAGER.

30. BEP ANALYSIS ASSUMPTION
• PRICE PER LTR= 100
• FOR 50 LTR= 5000
• MRP= 6000
• PROFIT=1000
• SELLING 2,00,000 UNITS OF 50 LTR EACH =
120000000
• PROFIT= REVENUE- EXP= 1,20,00,00,000-
1,00,00,00,000=2,00,00,000
• BEP POINT= 2000000000/20000000