this was one of our Marketing, MBA project. We had to Launch an Over the Counter Product, So we came up with this Nicotine Patch which could be used to drain off the urge for smoking cigarettes than using a nicotne gum. This Product has not yet been Launched in Mumbai, or say India. If ever it is.. on a costlier basis.. So we came out with this product where the could fit ur wallet. Thank you :) if any queries, do contact me :) thank you

1. NITRONIC LTD.
PRESENTS
NO2BACCO PATCH

2. GROUP MEMBERS
STEFFY THOMAS
SANKET DAUNDKAR
WINNIE MANOJ
ROHIT SHETTY

3. CONTENTS
 Brief introduction about FMHG
 Why nicotine gums did not work
 Executive Summary
 About our company
 Logo and Tagline
 Vision and Mission statements
 4 P’s

4.  Newly launched product
 Benefits and product features
 The USP of the product
 Competitive review: major competitors
 Advertising
 Brand ambassador

5.  SWOT analysis
 STPD
 Market segmentation
 PESTLE
 Financial analysis
Future Plans

6. FAST MOVING HEALTH CARE GOODS

7. FMHG
Components
OTC
products
Functional
Foods
Medicinal
Foods
Phytochemicals
Nutraceuticals
Ayurvedic
& Herbal
Medicines

8. AVAILABLE PRODUCTS FOR SMOKING CESSATION

9. Bad taste
Uneasiness
Costly
Still the craving for a
cigarette persist
WHY NICOTIN GUMS WAS NOT SUCCESSFUL

10. NITRONIC LTD.

11. EXECUTIVE SUMMARY
 A Indian based company named “NITRONIC LTD.” is preparing to
launch a NICOTIN PATCH in the name of NO2BACCO for the
working members, youths, middle and upper middle class
members, in the Indian market.
 The primary marketing objective is to make consumers aware
about it’s new product and its unique working pattern, resulting to
achieve huge market share in pharma industry.

12. ABOUT OUR COMPANY
 NITRONIC LTD.
 TYPE : PRIVATE HELD COMPANY
 HEADQUARTERS : ANDHERI EAST , MUMBAI, INDIA
 PRODUCT : NO2BACCO PATCH
 WEBSITE : www.nitronicltd.org

13. LOGO AND TAGLINE
 OUR COMPANY LOGO
 OUR COMPANY TAG LINE :
- “STOP SMOKING
START REPAIRING”

14. VISION STATEMENT
 To be the best Nicotine Replacement Therapy in the universe. We
shall attain this position by transforming the health care
experience through a culture of caring, quality, service, innovation
and excellence
 Nitronic.Ltd is known as an excellent organization of people
working together to do the right thing every day to improve the
health and well being of those we serve
 Nitronic core values are integrity, caring, innovation and
excellence.

15. MISSION STATEMENT
 Better health and a better life for you and the people around you.
 No2bacco will be their final solution to quit their smoking habits.
 No2bacco differentiates itself from other competitors in the way
the product looks, taste and its effectiveness.
 No2bacco makes the challenge of quitting smoking be effortless
and takes a truly positive attitude.

17. NEW PRODUCT LAUNCH
THE NEW PRODUCT ‘ NO2BACCO’ IS A PREMIUM NICOTINE PATCH LAUNCHED BY NITRONIC LTD.

19. MEANING BEHIND OUR PRODUCT
NAME
NO – TO- TOBACCO
NO – 2BACCO
[ TOBACCO]
“ NO2BACCO”

20. USP
The USP of Product is that it helps to reduce
craving and quit smoking within 2 weeks
time and helps to live a smoke free life.

21. BENEFITS OF NO2BACCO
The patch greatly reduces the urge to smoke.
 The patches are convenient, easy to use and
apply.
It’s an effective substitute for people who hate
chewable medication.
 This therapy has proven to be very effective in
managing withdrawal symptoms.

22. The patches are discreet and can be hidden
under clothes.
The patch doesn’t require much attention as you
apply once in the morning and face your
activities for the rest of the day.

23. MAJOR COMPETITORS
NICORETTE
NICODERM

24. PRICE
COST OF PER PATCH IS Rs. 100/-

25. PLACE
CHEMIST
DE-ADDICTION CENTERS
CORPORATE CANTEEN

26. PROMOTIONS

27. PROMOTIONS
PROMOTIONAL CAMPAIGNS LIKE SEMINARS IN CALL
CENTERS
 CAFÉ, CONCERT , ROCKBAND ETC.
FREE SAMPLES
CREATE AWARENESS

29. ADVERTISINGS
CREATING HYPE IN THE MARKET WITH OUR TAG LINE
“STOP SMOKING START
REPAIRING”
To Grab the attention using Business professionals &
youths as the medium & good Punch line

31. AD’S ON TELEVISION

32. ADS ON HOARDINGS

33. ADS ON NEWSPAPER AND MAGAZINES

34. ADS ON RAILWAY STATIONS

35. ADS ON BEST BUS

36. ADS ON SOCIAL NETWORKING SITES

37. POSTERS

38. ADS AT THE MOVIE THEATER

40. SUPPORTING SOCIAL CAUSES

41. BRAND AMBASSADOR

43. STRENGTH
Very well accepted in the global markets
R&D and product innovation, the brand benefits
No2bacco is the first medicinal preparation to
facilitate smoking cessation and created a new
category referred to as Nicotine replacement
therapy

44. WEAKNESS
Late entry in emerging economies
The brand has to work a lot in spreading
awareness especially in the rural markets
where reach of TV media is limited.

45. OPPORTUNITY
There are millions of tobacco users
People smoke and use tobacco in other forms like
chewing tobacco.
This large size of cigarette users also results in large
number of health issues
The de marketing of cigarettes by government and
NGOs also increase the number of wannabe quitters

46. THREAT
Pharma products are subject to stringent
legal regulations; any mistake in
adherence to quality etc can have strong
implications

47. MARKETING STRATEGIES

48.  Focus is mainly towards the Business professionals &
youths
 Targeted towards metropolitan cities in India
Giving a tough competition to companies like Nicorrette
Creating a good hype in the market.
Supporting social causes and participating in healthcare
marathons and NO TO BACCO RUNS

49. TARGET
Targeting the corporate
executives, youths, middle class
and upper middle class

50. BRAND POSITIONING
NO2BACCO will be positioned as a nicotine patch with unique
feature of its usability and user friendly and stuck lower the shoulder.
 Promotion campaigns & distribution strategy will help to achieve the
above mentioned objectives.
 Point of parity: Customers can easily associate themselves with the
product as a product made only for smokers who willingly want to
quit smoking.

51. MARKET SEGMENTATION
 The Various Bases for Market Segmentation are:
DEMOGRAPHIC SEGMENTATION
GEOGRAPHIC SEGMENTATION
PSYCHOGRAPHIC SEGMENTATION

52. DEMOGRAPHIC SEGMENTATION
Age- 21 and above.
Gender – Male and Female
Income – Middle ,Upper Middle and Hi-End Consumer
Occupation- Student and Working class

53. GEOGRAPHIC
 Initially, NITRONIC Ltd. will launch NO2BACCO. to major centre of
Delhi & Mumbai.
 In the second year of operation, NO2BACCO will be launched to
Goa, Chennai and Kolkata, operated under its own outlets and
larger formats like the chemist.
 The companies present distribution channel will help in reaching the target
customer easily.
 There will be three authorized service centre available in India at
Delhi, Mumbai & Chennai and 12 other service centres.

54. PSYCHOGRAPHIC SEGMENTATION
PSYCHOGRAPHIC SEGMENTATION pertains to
 Attitude- Yes
 Personality – Yes
 Value system – Yes

56. POLITICAL
In health industry there were less political
intervention.
Patches can be sold easily over the
counter.
The political background of India is not
stable.

57. ECONOMICAL
The product is not economical.
It’s a economical product for a business
class product

58. SOCIAL
 Society benefits a lot from patches.
 Smokers are reduced in the society.
 Getting support from family and friends.
 Stopping smoking can be easier if you talk about it to family and friends and let
them support you.
 If other people who live with you smoke, it may be harder for you to give up.
 You could try to get other household members who smoke, or friends who
smoke, to stop smoking at the same time.

59. ENVIRONMENTAL
Patches add value to the environment.
Usage of patches helps them to quit smoking
Indeed, it helps in reducing Air Pollution in Environment.
It also protects to prevent from Cancer

60. LEGAL
 As far as Patches are consider legal procedure were
limited.
 Legal procedure are only upto Registration of the
company.
 No licensing required for conducting the business
patches in India as it is OTC product.

61. FINANCIAL ANALYSIS

62. MEDIA INSERTION SIZE PLACE RATE(in Rs) PAGE AMOUNT
NEWSPAPER 2 Months 10x10
cm
National
coverage
400 per sq cm 1 pg/ month 80,000
SMALL
HORDINGS &
BOARDS
20 Days Full
Board
Mumbai,
Delhi,
Chennai.
2000 per hording per
day
4 hoardings 1,60,000
Social Net.
Sites
1000 views/
$ 2.99
2,99,000
TOTAL 5,39,000

63. T.V ADVERTISING
BBC NEWS CHANNEL, CNBC LIVE , MTV.
Mon-Sun (8:30:00 AM-5:00:00 PM)
Duration – 15 seconds
Rate/15 sec – 65000
Total budget - 14,30,000

64. TOTAL MEDIA BUDGET
TOTAL MEDIA BUDGET
5,39,000 + 14,30,000
= Rs .19,69,000 /-

65. Break – Even Analysis
Particulars Year (Rs.)
Sales (per unit) 100.00
Less :- Variable Cost (per unit) 86.00
Contribution 14.00
Less :- Fixed Cost 32,89,000
P/V Ratio (Contribution / Sales) 0.14
Avg Sales per month (10 ,00,000 units/12 ) 83,333 units

66. Breakeven point (Qty.) = FC/Contribution per unit.
=32,89,000/ 14
=2,34,929 units.
Break even point (Amt.) = FC/PV Ratio
= Rs. 2,34,92,857.
Breakeven period= BEP volume / Sales volume per period
= 2,34,929/83,333
= 2.81
= 2 months 24 days.

67. Profit and Loss A/c
Particulars
In Lakhs
Year 1 Year 2 Year 3
Units Sold per year 10.00 18.00 27.00
Sales (100 per units) 1,000.00 1,800.00 2,700.00
(-) Costs of Goods (84 per units) 840.00 1,512.00 2,268.00
Gross Profit 160.00 288.00 432.00
Selling Expenses (2%) 20.00 36.00 54.00
Office Rent :- 1.15
Mumbai 2.40 2.40 2.40
Delhi 1.80 1.80 1.80
Kolkata _ 1.20 1.20
Chennai _ 1.44 1.44
Goa _ 1.69 1.69
12 Authorized Service Centres (Overall Avg. cost) _ _ 14.40
Salaries 7.00 12.00 20.11
Depreciation
MotorVans 7.50 22.88 78.17
Office Equipments 0.30 0.60 1.35
Miscelleneous Expenses 1.60 2.64 5.66
Advertisement 19.69 17.10 15.00
Insurance 2.00 5.00 12.00
PBIT 97.71 183.26 221.63
(-)Interest (15% on 2crores debt fund) 10.00 30.00 30.00
PBT 87.71 153.26 191.63
(-)Tax (30%) 26.31 45.98 57.49
Profit after tax 61.40 107.28 134.14
(-) Dividend (10%) 20.00 47.50 75.00
Retained Earnings 41.40 59.78 59.14

68. Balance Sheet
Particulars FY 1 FY 2 FY 3
LIABILITIES :- Rs. Rs. Rs.
Source of funds In Lakhs
Sharecapital (of Rs. 10 each) 200.00 475.00 750.00
Profit and loss Balance 41.40 59.78 59.14
Secured Loans (10%) 100.00 150.00 150.00
Unsecured Loans (15%) _ 100.00 100.00
Creditors 70.00 102.16 137.37
Total Liabilities 411.40 886.94 1196.51
ASSETS :- Rs. Rs. Rs.
Appilcation of funds In Lakhs
Fixed Assets (Cost-Depreciation)
Motor Vans 42.50 121.125 521.125
Office Equiments 2.70 5.10 12.00
Current assets
Cash in Bank 125.03 235.11 269.13
Sundry Debtors 53.78 89.89 13.12
Bills Receivables 85.01 252.25 102.02
Inventories 102.28 435.71 279.11
Miscelleneous Exp or losses 0.10 _ _
Total Assets 411.40 886.94 1196.51

69. Cash Flow Statement
Particulars Year 1 Year 2 Year 3
A] Cashflow from Operating Activities (A) Rs. (in lac)
Increase in stock 102.28 435.71 279.11
Cash Receipts from Customers 85.01 252.25 102.02
Cash generated from operation 125.03 235.11 269.13
Less :- Salaries 7.00 12.00 20.11
Less :- Increase in Debtors 53.78 89.89 13.12
Less :- Cash Paid to Suppliers 70.00 102.16 137.37
Less :- Taxes paid 26.13 45.98 57.49
Net Cash generated from operation activities 155.41 673.04 422.17
B] Cashflow from Investing Activities (B)
Less :- Purchase of Fixed Assets 50.00 100.00 300.00
Purchase of Investment _ _ _
Net Cash outflow used in investing activities -50 -100 -300
C] Cashflow from Financing Activities ( c )
Less :-Interest Paid 10.00 30.00 30.00
Less :-Dividend Paid 20.00 47.50 75.00
Net Cash outflow used in financing activities -30 -77.5 -105
Total ( A )+( B )+( C ) 75.41 495.54 17.17
Net increase in Cash & Bank Balance _ 420.13 -478.37

70. Ratio Analysis
Types of Ratio Year 1 Year 2 Year 3
I ] Liquidity Ratio's
a)Current Ratio 5.23 9.91 4.83
b) Quick Ratio
c) Cash Ratio 1.78 1.185 1.959
II ] Leverage Ratio's
a) Debt Equity Ratio 0.50 0.53 0.33
b) Interest Coverage Ratio 9.77 6.11 7.39
c) Inventory Ratio _ 5.62 6.34
d) Debtors Turnover Ratio _ 24.37 26.21
e) Avg. collection period _ 14.977 13.92
III ] Profitability Ratio's
a) Gross Profit Ratio 0.16 0.16 0.16
b) Operating Profit Ratio 0.097 0.101 0.082
c) Return on assets _ 0.1657 (16.57 %) 0.1288 (12.88%)
d) Net Profit Margin Ratio 0.06 0.059 0.049
IV ] Valuation Ratio's
a) Yield Ratio _ _ _

71. FUTURE PLANS
From 17 centres to spread all cross
India.
To come out with lozenges.
Nasal spray.