3. Base Model (V-Water Fresh)
UV Technology - 4 Stages:
3
Sediment
filter
Pre-carbon
filter
UV lamp
Treated
water tank
4. Pre Sediment filter
Pre Carbon Filter
Post RO Carbon Filter
High-end Model (V-Water Plus)
4
Post Carbon Filter
RO Membrane
TDS modulator
Treated Water Tank
RO+UV Technology - 7 Stages:
6. Focus Group Interview
Key Learnings
Needs :
• User and eco-friendly products.
• Saves time and energy.
Complaints :
• Instant replacement of sediment and carbon filter.
• Quality of product.
• Poor after sales service
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Conducted at Skyline Thiruvalla and Niranam Panchayat, Alapuzha.
7. Survey
We gave questionnaire to 100 people, only 63 replied.
Major findings :
• Existing users : 30.15%
• Non existing : 69.84%
Major brands used by existing customers in percentage :
• Aqua Guard (47.36), Pure-it(31.57), Kent (15.79) and others (5.26)
7
8. Marketing Strategy
• Water test kit
• Using TV and Radio Ads.
• Tie-up with promotional event like CSR.
• Suggesting Brand Ambassador as Actor
Sri. Sreenivasan.
• Conducting free water pH level check
Pricing Strategy
• Aqua guard :UV(Rs.12490)
RO+UV(Rs.17590)
• Pure-it : UV(Rs.8290),
RO+UV(Rs.20990)
• Kent : UV(Rs.8500)
• V-Guard : UV(Rs.10000)
RO+UV(Rs.17000) 8
9. Marketing Campaign
Residential Associations
MCA , YWCA
Rotary Club
Lions Club
Fairs and Exhibitions
Y Men’s
Religious Organizations
KMA, ISTD, NIPM, TIE, CII, Chamber of
Commerce's
Corporate Marketing
Companies
Builders
Infopark
9
Sales Happens through the existing dealership networks of V-Guard
10. Financial Analysis
• Initial investment
• Interest on working capital loan
• Interest on term loan
• Number of workers
• Number of Territory Sales Officer
10
: Rs. 604,25,000
: 15.5%.
: 13.5%.
: 14
: 3
We will be setting up an Assembling unit where the components sourced from
vendors will be assembled into the finished unit. This assembly unit will have a
cellular manufacturing layout
11. Basic Assumptions
Commission : 30% per unit to Dealer
11
Item Heads Base Model Plus Model
Unit Cost Price Rs.3,800 Rs.5,500
Unit Selling Price for Base Model Rs.10,000 Rs.17,000
Quantity Produced 10,560 Units 7,920 Units
Quantity Sold 9,600 Units 6,000 Units
12. Profitability Estimates (in Lakhs)
Year 1 2 3 4 5
A. Sales realisation 1,980 3,318 6,012 11,209 14,644
B. Cost of production
Raw materials 695 1,161 2,103 3,904 5,079
Wages and salaries 39 53 54 96 102
Factory overheads 35 58 105 195 254
C. Administration & selling expenses
Administration expenses 15 16 17 19 20
Selling & Distribution expenses 890 1,420 2,385 4,150 5,403
D. Gross profit before interest 306 609 1,347 2,845 3,787
E. Total financial expenses
Interest on term loans 56 56 58 50 42
Interest on bank borrowing 28 47 86 160 209
F. Depreciation 38 38 46 46 46
G. Operating profit 185 468 1,157 2,589 3,490
H. Preliminary expenses written off 1 1 1 1 1
I. Profit/Loss before tax 184 467 1,156 2,588 3,489
J. Provision for tax 55 140 347 776 1,047
K. Profit after tax 128 327 809 1,812 2,442
12
13. Break Even Point (Base model)
BEP - Base Product FY 2017 FY 2018 FY 2019 FY 2020 FY2021
Revenues (in lakhs) 960 1,555 2,799 4,913 6,040
Fixed Cost (in lakhs) 174 215 255 273 317
Variable Cost Per Unit 7,636 8,215 8,808 9,501 10,227
Contribution Margin 2,364 2,585 2,856 3,096 3,377
BEP 7,368 8,311 8,935 8,828 9,401
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14. Break Even Point (Plus Model)
BEP - Plus Product
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
Revenues (in lakhs) 10,200 1,762 3,212 6,296 8,603
Fixed Cost (in lakhs) 180 233 280 324 414
Variable Cost Per Unit 11,789 12,683 13,611 14,682 15,810
Contribution Margin 5,211 5,677 6,218 6,733 7,318
BEP 3,471 4,121 4,509 4,824 5,662
14
16. Conclusion
• Water contamination is a serious issue with much social relevance.
• Taking into account both the business and the social aspects, a Quality Water
Purifier from the House of V – Guard is the Best Option available
• Then V Guard will transform itself from ‘The Name you can Trust’ to
‘The Only Name you can Trust’
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