AB Mechanicals aims to launch their new Reformer machine, an all-in-one cooking appliance, in five major cities to target busy working women. Their marketing strategy includes advertising campaigns highlighting the time savings and convenience of the product, as well as promotional activities like contests and scratch cards. As the first product of its kind, the Reformer aims to grab customers' attention with its innovative approach to cooking.

1. A
Project Report
On
Marketing Plan
Of
Reformer Food Making Machine
(AB Mechanicals)
Submitted to:- Submitted by:-
Ms. Ajeta Bhatia Garima Jain
Meenakshi Gupta
Neha Ajmera
Sunil Jangi
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2. INDEX
S. NO. Particulars Page No.
1. Executive Summary 3
2. AB Mechanicals: The Company 4
o Vision
o Mission
3. Reformer : The Product and it‟s uses 5
4. Detailed description of Reformer 6-14
o Marketing Mix
o Product Mix
o Segmenting, Targeting & Positioning
5. Latest Trends & Situation 15
6. Competitive Advantage 15-16
7. SWOT Analysis 17-19
8. Action Plan 20-
o Marketing strategy
o Push strategy
o Pull Strategy
9. Projected Profit and Loss Statement 21
10. Contingency plan 21
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3. EXECUTIVE SUMMARY
AB mechanicals provide the “Reformer” food making machine which can minimize cooking as
well as the preparation time and it is cheaper than all the costly appliances in kitchen. It will
provide time to a working women to spend her time with her family and can spend time in more
important other activities. Some of its features are Electricity cord, two water pipes, one inlet and
one outlet, one residual tray, Touch screen, Sensor acting as a fire alarm etc. Our company
provides two category of product, one for serving six people at a time and other is to serve 15
people at a time. We aim to skim the market as we are the pioneers in this segment. We also
believe in maintaining good relationship with customers, so we provide them good after sale
services. To sell our product we target to the uppar middle and uppar segment of the market of 5
industrial cities. To promote our product we will run campaigns and pre-advertisements in the
market especially on Billboards, TV and Print media. Here we will address the pain areas of
cooking and try to make think and generate curiosity among people that there should be some
product which will solve their problems. We would be using sales promotion techniques to
increase the sales of our product like, Lucky dips, Contests- Best Recipe, Scratch Cards etc. No
such product has ever been launched in the market. Thus our new invention will grab the
attention of the masses giving us an edge over the other existing appliances.
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4. ABOUT THE COMPANY
AB MECHANICALS
Vision:
Our company will provide the unique product for Kitchen which serves the desires of the
customers. We share our customer‟s passion for food. We are the pioneers in providing the food
machine which serves the customer need, we are ready to face head on competition because we
believe that we are innovators and sensitive to our consumers needs & strive to upgrade
ourselves continuously. We take pride in our excellent after sales service and therefore look
forward to sustain our customers.
Mission:
We aim to identify customer‟s needs and provide them the product which satisfy their need. Thus
our product will help in increasing people‟s life and leveraging their lifestyle.
We are willing to provide the kind of product with best technology which reduces the work of
women‟s in kitchen and they can finish their kitchen work as soon as possible.
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5. REFORMER: The Product
In the current scenario, an Indian woman is now independent; careers oriented and indulge into
different activities. She has to maintain the balance between her personal and professional life. In
the meanwhile she has to face various complexities. Everyday cooking for her home, demands a
lot of her time, due to which a very little time left for her, for leisure or family. Therefore, in
order to ease cooking difficulties, various kitchen appliances like mixer, juicer, microwave, etc
are available in this segment. These appliances are effective in their individual functions, but
even then there is substantial amount of efforts required to manage them. Sometimes even a chef
is hired who could share the burden thus further increasing costs.
We “AB Mechanicals” have felt the need to develop an appliance (machine) which can minimize
cooking as well as the preparation time and it is cheaper than all the costly appliances in her
kitchen.
There is no need to purchase various appliances, our product “Reformer” will provide all the
facility in one appliance. By realizing this gap in the demand and availability of an „all-in-one‟
appliance we introduce ‘Reformer’. It prepares food just like she would for her family. It easily
replaces the chef in the kitchen.
Thus, we believe that „Reformer‟ is a very lucrative option, considering it is reasonably
affordable with only a one time investment, to solve all cooking related problems.
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6. DETAILED DESCRIPTION OF REFORMER
MARKETING MIX
A. Product
It is a consumer durable, which can be a part of every home. It is the product which provide the
solution to save the time of working women‟s and help them to spend their time with their family
and for leisure. So it would be best friend for all busy/working ladies, „Reformer: the fast and
quick technology product.
PRODUCT MIX
o Branding
Brand Name: ‘Reformers’:
The product name is in connection with its core benefit. It‟s a machine which can make food. It‟s
smart as it is totally automatic – i.e. it can do everything related to cooking - wash, peel, fry,
bake, cook and much more and that too in very little time.
o Packaging
The packaging of product is very necessary, for the safety of the product. So we provide
the machine in the card board packing, with tharmacol packing inside it. So the product
will be safe.
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7. o Product Depth
The product has 2 categories offered:
Small size for 6 people
Large size for 15 people
o Features
A fiber body which will be silver in color.
Electricity cord
2 water pipes, 1 inlet and 1 outlet
1 residual tray
Touch screen
Sensor acting as a fire alarm
Detachable Memory Card to feed in more recipes
Internally attached equipments and storage compartments
o Functions
 Washing Peeling Cutting
 Boiling Warming Cooking
 Frying Baking Defrosting
 Kneading Squeezing Mixing
 Tossing Straining Internal Cleaning Facility
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8. o Size Specifications
 The machine specifications for 6 servers:
Length: 2 ft.
Width: 2.5 ft.
Height: 2 ft.
 The machine specifications for 15 servers:
Length: 3 ft.
Width: 2.5 ft.
Height: 3.5 ft.
o Recipes
On the product purchase, we will provide 100 programmed recipes-
20 Mughlai (10 veg. and 10 non-veg.)
20 Chinese (10 veg. and 10 non-veg.)
20 Italian (10 veg. and 10 non-veg.)
20 Snacks (10 veg. and 10 non-veg.)
10 Baked dishes (with the option of eggless servings)
10 Drinks
o Additional Features of the product
Remote Control
User Manual
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9. Recipe Book & extra recipes: A recipe book that will consist of 100 recipes fed into the
system. Plus another additional 100 recipes that could be fed into the system according to the
consumer‟s choice.
Sensor: Our product includes an in-built sensor that can detect any extreme temperatures or
fire as well as take the required measures for the same
Language Support: The „Reformers‟ will have two language supports- English and Hindi
o After Sales Service
Our company servicemen will come to the consumer‟s house for servicing.
We will provide free servicing for the first year to our consumers .
For the remaining years we can enter into contracts with consumers on a yearly basis
Our contract fees will be Rs. 3,500 in which servicing will be done every 3 months.
A 24-hour Toll Free No.
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10. B. PRICE
As the product offers best technology with all- in-one facility, the prices of the product are as
follows:
Rs.39,999 for 6 people and (Small size)
Rs. 69,999 for 15 people (large size)
As we are the pioneers in this product segment, we are adopting market skimming strategy, the
prices are high so that we can skim maximum amount of revenue from the various market
segments.
C. PLACE
Our product will be launched in 5 industrial cities and towns namely:
Bombay,
New Delhi,
Bangalore,
Ahmedabad,
Pune
As on these places the most of the women‟s are working and of high income group. They can
afford the product and the demand of the product will be more at these places.
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11. D. PROMOTION
To promote and market our product we will use the following strategies:
1. Campaigns or Pre-advertisements: Before we introduce our product in the market, we
will run campaigns and pre-advertisements in the market especially on Billboards, TV
and Print media. Here we will address the pain areas of cooking and try to make think
and generate curiosity among people that there should be some product which will solve
their problems.
2. Introduce in the Market: In this stage our main objective will be to create awareness for
our product. We would be using the following mediums:
Print Media
o Newspapers - Times of India, Hindustan Times, DNA, Indian Express and Mid-
day.
o Magazines- SAVY, Famine, Housekeeping, New Era, etc
Television: Advertisements on prime time on most popular or watched channels like:
Colors, Star plus, NDTV Imagine, NDTV News and Aaj tak.
Radio - My FM and Mir-chi FM.
Brand Ambassador: We would have an ordinary lady, someone who the consumers can
relate to with their problems. At a later stage we may rope in a famous celebrity like
“Ashwariya Rai Bacchan” who can make the consumers believe that after a hard day‟s
work, one can eat home cooked food – and all this in a hassle free manner.
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12. 3. Sales promotion
We would be using sales promotion techniques to increase the sales of the product:.
Lucky dips
Contests- Best Recipe
Scratch Cards
Free one year servicing
Distribution of free crockery
We are trying to portray a common woman, who now is relaxed and free from all the cooking
activities. Basically we are trying to portray the amount of effort that will be saved when one
uses our product.
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13. SEGMENTATION, TARGETING AND POSITIONING
 Segmentation
We intend to segment our market as follows:
1) Demographic segmentation:
a) Income: Our product is the first of its kind, innovative, convenient and therefore would
be priced accordingly. Hence, we target families whose monthly income is Rs. 1,00,000
and above.
b) Age: Since it is a consumer durable product people above 18 years would find it
convenient to operate.
c) Geographic: Our product would be launched in the cities i.e. Mumbai, Delhi, Bangalore,
Ahmadabad, Pune.
d) Family Size: Our product can cater effectively to nuclear as well as joint families of
maximum 15 people at a time.
e) Gender: Our product will mainly focused to women considering the fact that we would
be launching it in India.
f) Generation: We target the next generation which believes in working „smart‟ not „hard‟.
It is fast paced and therefore very time bound. It looks forward to products that make life
simple and convenient.
g) Social Economic class: Our product is targeting the upper middle class & high class
segment of the market.
h) Psychographics’ Segmentation:
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14. i) Lifestyle: Our product is mainly targeted at people who are time pressed & strive to
achieve a balance between their careers and family life. They mainly fall under the
career oriented category.
ii) Personality: We look at our consumer as ambitious woman, who will not take „No‟
for an answer. She wants the best for her family and herself. Thus she will not
compromise on her precious time. She wants things to be done right at the first time
itself.
 Targeting
AB Mechanicals is mainly targeted at people who are career as well family oriented or who live
on their own, away from their families for the purpose of studying/working as well as whose
monthly income is of Rs.1,00,000 and above. Thus it is concentrating on only the uppar class and
uppar middle and in the urban areas and industrial cities.
 Positioning
We have positioned REFORMERS as an A-Z cooking solution for career as well as family
oriented people, mainly women. It is a onetime investment for the customers and would act as a
replacement for one‟s chefs and cooking appliances.
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15. CURRENT SITUATION & TRENDS
In India currently companies are offering the machines which provide only the one or two
facility in it like Chapatti Maker, Almond Cracking Machine etc. So we are the pioneers in the product
and through our promotion strategy the sale of the product will be high.
COMPETITIVE ADVANTAGES
The main competitive advantage of the AB Mechanicals is providing the unique product to the
customers which will provide all the facility in one appliance. It prepares food just like a women
cook for her family. It easily replaces the chef in the kitchen.
PORTER’S FIVE FORCE MODEL
Bargaining power of customers:
There is no bargaining power of customers since we are the only providers for such a
product, so because of this reason customers can‟t switch to other suppliers.
We are providing assurance of high quality and service. Thus customers have very little
bargaining power.
Bargaining power of suppliers:
High because the product is novel and there would be specific suppliers.
No threat of forward integration from suppliers because the product is technology oriented
and also capital intensive.
Since our product is customized, all our suppliers cannot make our product's spare parts.
However we will have to depend heavily only on a few of them, thus bargaining power of
suppliers will be high.
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16. Threat of New Entrants:
Threat of new entrants very high because there are many players in the market like LG, etc.
Who would try and can copy the product.
Threat of substitutes:
As in India domestic labor is not that expensive so labor can be substituted in place of that
product.
Existing wide range of cooking appliances destined to cut time
There are always traditional methods of cooking liked by an Indian woman so other
traditional product can substitute this.
Competitive Rivalry within the Industry:
Our industry has high fixed costs and therefore competitors will have to manufacture at full
capacity even if it means cutting prices.
Buyers will have high switching cost and therefore rivalry is reduced.
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17. SWOT ANALYSIS
Strengths:
Convenience
Our product is designed to make use of minimal effort while making or cooking food.. It
provides the various facilities in cooking functions thus making it very convenient for the user.
Time Saving
A meal for a family can be cooked in as less as 30 min that includes washing, peeling, frying,
etc. Thus the amount of time saved compared to traditional methods of cooking is less.
First Mover Advantage
No such product has ever been launched in the market. Thus our new invention will grab the
attention of the masses giving us an edge over the other existing appliances that are meant to
save time in the market.
Multi-purpose Product
Our product can perform all cooking needs from washing to tossing, kneading to defrosting and
all this in very little time. What‟s more -it will clean itself and dispose of the waste. All these
functions and all it require is the absolute lowest level of effort from the user.
No cooking knowledge required
This product will provide permanent relief to all those women who do not know how to cook
because now you don‟t have to. With the „Reformers‟, all your culinary needs will be taken care
of.
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18. Weakness:
High Price
Since our product is customized, so our prices will be high and may not target to the large
number of people. It only targeted to the people with a monthly income of more than 1 lakh or
more only will think of going for it.
Absolute dependence on technology
Our entire product is based on high technology, for this reason if any one part stops functioning
then we offer then complexities could rise. Thus we offer after sales service so that such a
possibility can be avoided.
Obsolescence of technology
As our product is technology driven, there is always going to be a high chance of this technology
becoming obsolete.
Opportunities:
Adding refrigeration facilities.
At a later stage Reformers could also perform refrigeration facilities and the consumer would not
require a refrigerator as well.
Dietician services provided by the product.
If the consumer suffers from a specific ailment, our product will tell the user if there is any
precaution that needs to be taken with respect to the food that he eats.
Eg. If one suffers from high blood pressure, then „Reformers‟ will adjust the amount of fats or oil
in the meal that is being prepared.
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19. Measurement of nutrition
It will inform the consumers of the amount of calories, fats, sodium, oil, etc. present in every
meal as people are turning health conscious nowadays.
Expansion into other cities and towns
In the initial phase we would be targeting the main cities in India but later on with the popularity
of „Reformers‟ we aspire to expand to other cities in India as well as abroad.
Threats:
Availability of cheap substitutes in terms of domestic help in India.
There is a large segment of cheap unskilled labor and it is not very difficult to find a cook.
„Traditional way of cooking‟ mindset
Indians are very particular about the method of preparation of their meals and would not be
comfortable with switching to a new product that performs these functions for them.
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20. ACTION PLAN
To launch the product in the market we will give per-advertisements, to increase the curiosity
among the people, then after some time we will launch our product in the market. And give
advertisements which are associated with the feelings of the customers.
The action plan to promote the sale of the product in the market may be described as follows:
MARKETING STRATEGY
Distribution Flow Chart of Reformers:
The Super Distributor will distribute the product to the various Distributors in the different cities.
We plan to have one distributor per city. He would in turn cover around 10 retailers (minimum).
We will sell the product especially through electronic showrooms like Shoppers stop, Big
Bazaar, Next etc. to name a few or through dealers to reach the retailers.
Also, in parallel, we would sell our product over the internet through our website.
PUSH STRATEGY
In order to promote sales, we would adopt the „Push Strategy‟ after the launch of the product.
This strategy would be adopted through trade sales promotion i.e. after sale of every 500
REFORMERS per month; our distributors would be given a commission
PULL STRATEGY
After gaining recognition and becoming a market player, we will shift to the „Pull Strategy‟
which basically includes inducing sales by increasing promotion.
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21. PROJECTED PROFIT & LOSS STATEMENT
Our estimated investment in this total project through manufacturing to marketing of the product
is 50 crore. And our turnover is approximately 80 crore. Our projected profit is 30 crore in A
year.
CONTINGENCY PLAN
In any case our product is not successes in the market, and then to continue our product some of
the strategies we follow like:
 We would be reducing the prices gradually once the competition enters the market as a
contingency plan
 We would also give an option of EMI of Rs. 4000/- per month for 12 months for the
6 servings SKU and EMI of Rs. 4000/- per month for 20 months respectively for the 15
servings SKU.
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