Market entry, marketing mix, business development & financial recommendations in Electronic Security & Electric ropes industry for V-GUARD

2. Electronic
Security System
Ethernet Switch
and Routers
Jhalars (Electric
ropes)
Men’s Shaving
Razors
Our Recommendations
1 2 3 4

3. Recommendation 1: Electronic Security System
V Guard

4. Industry Analysis V-Guard Alignment Marketing Mix Financials
Takeaways
Market size of electronic
security system was Rs.10
billion in 2013, it is
envisaged to be as large as
Rs.22 billion by 20151
Video surveillance systems
commanded the largest
share of the total India
electronic security
equipment's sales revenue in
the country in FY’20134
India Video Surveillance
market is expected to reach
$952.94 million by 2016,
with a CAGR of 32.49
percent from 2011-20164
CCTV cameras stating, India’s
electronic security market
has seen a growth of 15 -20
percent annually in recent
years
2. Source: http://ncrb.gov.in/CD-CII2013/compendium%202013.pdf
1. Source: http://nbmcw.com/interviews/30392-zicom-indian-electronic-security-market-to-witness-strong-growth.html
2
2
3. Source: http://indianexpress.com/article/cities/delhi/crime-cases-double-in-2014/
3. Source: http://www.news.kenresearch.com/post/78635301770/india-electronic-security-market
3
4. Source: http://www.ifsecglobal.com/changing-landscape-indian-electronic-security-industry/

5. Industry Analysis V-Guard Alignment Marketing Mix Financials
It has 30% of its revenue coming from
its electronics products and it has
technological capabilities to produce
security equipment’s whose designs are
not sophisticated leveraging their Tie-
Ups with SSIs
It will in line with their aim of guarding
customers valuable resources through
its stabilizers, in this case security
systems will provide complete
protection
V-guard has gained the consumer trust
through its stabilizers it can leverage
that trust while offering security
systems and it will have credibility which
generally new entrants face
3 Reasons
Sensors: Door Sensor, PIR Sensor, Gas/Smoke
Sensor, Glass break or panic Sensor, Motion
Sensor
Cameras: Both wireless and wired cameras
available in variants as per the quality of
image and size of camera
Door Camera cum Phone: Variants of door
cameras and phones based on quality of
voice and image. Both wired and wireless
versions will be available
Main Control Panel: Based upon the scale of
the system, offer variants of control panel
capable of handling responses from multiple
sensors and sending updates to various
monitoring devices
Mobile App & PC Solutions: Monitoring
solution compatible on all operating systems
both mobile and desktop
Product Ranges Competition
In organized sector it will face
competition from Honeywell, GE,
Godrej Security Solutions, Alba
Urmet, Bosch, Texicom, Vantage
In unorganized sector majority of
them are Chinese or Taiwanese
companies
Capabilities
Utilize the existing network of
distributors of the electronics
products
Start selling products on major
ecommerce websites like Flipkart, Amazon
and Snapdeal as this channel will provide
the high reach to the target customers
who are tech savvy and prefer to order
products online

6. Industry Analysis V-Guard Alignment Marketing Mix Financials
PRODUCT
Offer range of electronic security system
which includes Video Door Phones,
CCTV Cameras, Door Sensors, Motion
Sensors and smart phone app to
monitor and manage the system from
anywhere and with utmost ease
PRICE
Penetration pricing strategy, prices between
offerings of organized and unorganized
sector
The cost of the entire security solution can lie
somewhere between INR 7000-10000 as
existing solutions from local players are
around INR 6000 while organized players offer
complete solutions from somewhere between
INR 10000- 25000 based upon the scale
and quality of the equipment's used
PLACE
Utilize the existing network of
distributors of the electronics products
Also start selling products on major
ecommerce websites like Flipkart,
Amazon and Snapdeal as this channel
will provide the high reach to the target
customers who are tech savvy and
prefer to order products online
PROMOTION
Utilize existing promotion mediums
with increased in-store promotion,
higher channel margin & social media
publicity
Can also build micro sites for brand
extension and promotion on
ecommerce channel of sale
Marketing
Mix
USP
Easy to assemble, operate
and install products, compatible
with existing technologies
offering seamless integration
across the various monitoring
devices. The security solution
will be customizable based upon
the scale of instalment and
comes with a warranty of 3
years

7. Industry Analysis V-Guard Alignment Marketing Mix Financials

8. Recommendation 2: Ethernet Switch and Routers

9. Industry Analysis V-Guard Alignment Marketing Mix Financials
Takeaways
According to International Data
Corporation, the Ethernet Switch market
clocked end-revenue of USD 124.0
million during Q1 2015 with impressive
growth year on year of 15.1%
The WLAN market in India clocked an
8.9% growth quarter on quarter and
37.1% year on year during Q1 2015 and
registered USD 45.1 million as end-user
revenue
WLAN market in India continues to be
driven by the traditional contributors
like Education and Professional Services,
the increasing deployments of Hotspots
by the Government and Telcos
The Router market stood at a total of
USD 69.4 million, a -13.6% growth year
on year and 3.0% quarter on quarter, Q1
2015
Higher enterprise spending coupled with
3G/4G upgrades/new rollouts and
increasing broadband penetration is set
to push growth further in CY 2015

10. Industry Analysis V-Guard Alignment Marketing Mix Financials
V-guard has range of UPS for computers, routers
and switches will be extension of portfolio for PC
solutions
It has 30% of its revenue coming from its
electronics products and it has technological
capabilities to produce routers and switches
whose designs are not sophisticated leveraging
their Tie-Ups with SSIs
Can leverage same channel as that of UPS &
inverters, no distribution setup cost
4 Reasons
Can outsource from outside country as excise duty
is zero for the product range, hence high control
on pricing of product
Competition
In organized sector it will face competition from Cisco,
Huawei, Juniper, HP, Dlink, TP-link, Netgear, Aruba etc.
In unorganized sector majority of them are local
manufacturers and Chinese companies
Capabilities
Leverage the zero excise duty on the product for cost
advantage
Set minimum standards of quality of product in the
contract and if higher defects are reported penalise
the manufacturer
Outsource the manufacturing to a Chinese or Taiwanese
manufacturer

11. Industry Analysis V-Guard Alignment Marketing Mix Financials
PRODUCT
Range of Ethernet switches which build
a network connection between the
attached computers
Range of routers which links computers
to the Internet, so users can share the
connection
PRICE
Penetration pricing strategy, prices between
offerings of organized and unorganized
sector
Offer Switches from INR 200 and Routers
from INR 600-2000
PLACE
Utilize the existing network of
distributors of UPS and inverters
E-commerce websites as electronic
products are sold highest on such
portals
PROMOTION
Utilize existing promotion mediums
with increased in-store promotion,
higher channel margin & social media
publicity
SEO and online advertisements
Marketing
Mix
USP
Offering higher signal
reach and intermittent
connectivity at affordable price
to both household and office
usage
Target Customer
Young middle and upper middle
class customers from tier-2, 3 and 4
cities
B2B customers will be small and
medium businesses and new start-ups
who are looking for economical and
yet effective solutions

12. Industry Analysis V-Guard Alignment Marketing Mix Financials

13. Recommendation 3: Jhalars “String Lights”

14. Industry Analysis V-Guard Alignment Marketing Mix Financials
Takeaways
Indian wedding industry is
over Rs 100,000 crore and is
growing at 25 to 30 per cent
annually
It is estimated that 5% of
wedding cost is on lighting
i.e. around 5000 crore
No well known brand in this
business and quality of
existing products is poor
Key competitors will be from
china and local makers from
Delhi and Mumbai
There are no brands with
offerings catering to various
needs in this segment and
consumers are not brand
loyal
There are other functional
benefits and occasions which
make this product’s industry
very vast
100,000.0
125,000.0
156,250.0
195,312.5
244,140.6
305,175.8
0
50000
100000
150000
200000
250000
300000
350000
2015 2016 2017 2018 2019 2020
Indian Wedding Market size (Crore Rs.)*
Growing disposable income & **
* http://retail.franchiseindia.com/article/whats-hot/trends/The-Flourishing-Indian-Wedding-Industry.a247/
**http://www.euromonitor.com/india/country-factfile
Popular Festivals/occasions in which
lightings are used
Diwali, Ganesh chaturthi, Holi,
Navaratri, Dussehra,
Durga puja, Onam,
Janmashtami, New year, Christmas,
Republic day, Independence day,
Birthdays, Anniversaries, Eid,
Bakreed, Guruparv, Lohri and many
more

15. Industry Analysis V-Guard Alignment Marketing Mix Financials
3 Reasons
31% of its revenue comes from house
wiring cable thus implying forte in this
sector. Since a major cost factor of a
Jhalar is wire, which is already being
manufactured in-house. This will lead to
significant cost advantages
The procurement of bulbs and
assembling of the parts can be
outsourced to an SSI hence not much
effort needed for monitoring except
quality standards
Competition
It also has some expertise in electronics
from manufacturing digital UPS. It can
leverage on these strengths
Delhi and Mumbai made
products, although better in
quality, do not have any brand
equity and are unable to charge
a price significantly higher than
Chinese products
Chinese products are subjected
to price variations due to import
tariff regulations and are of
cheap quality
Most of the product available
online on ecommerce channel
are imported from china and
then sold by local seller with not
clear product description
Product Ranges
LED based Light
Ropes: Bulbs fitted
inside a plastic tube
similar to a rope like
structure
Musical pattern
lights: Often blink
patterns are
incorporated with
an electronic kit
attached
Filament based:
Bigger filament
based, higher
luminosity string
lights for more light
requirements

16. Offer better quality string
lights with a warranty of 6
months with prices in reach of
the existing customers of local
or Chinese brands
Industry Analysis V-Guard Alignment Marketing Mix Financials
PRODUCT
In the wedding industry the major
portion of lighting used comes under
the “Jhalar”(electric strings) category.
We recommend a range of 3 variants of
“string lights” as mentioned previously
PRICE
• Prices to be kept slightly higher than
Delhi/Mumbai made products with a
warranty of 6 months, not given by
any competitor, to highlight the
premium quality
• We recommend popular pricing, in
reach of middle class and
PLACE
• Utilize the existing network of
distributors of House Wiring
products, sell the product from these
product in offline medium
• Sell products on ecommerce platform
during festive occasions like Diwali,
Christmas, Dussehra etc.
PROMOTION
• In-store promotions for customers
where sample of 3 variants are used
in decorating shop of the retailer to
give the actual feel of product
• Trade promotions to shopkeepers to
push the product with a positioning
of higher quality
• Product details can be given in catalog
of existing successful products
Marketing
Mix
Target Customer
Target Customers
• Customers from all socio-economic
classes as creative and first in class of
product offered by a reputed brand
• B2B clients include wedding planners,
organizers, guesthouses, hotels and all
other major enterprises who use
decorative lightings on festivals and
other special occasions
USP

17. Industry Analysis V-Guard Alignment Marketing Mix Financials

18. Recommendation 4: Men’s Shaving Razors

19. Industry Analysis V-Guard Alignment Marketing Mix Financials
Takeaways
Men’s grooming registers
current value growth of 15%
in 2014, to reach INR53.6
billion
Men’s grooming continues to
be driven by the urban male
consumer base
Gillette India continues to
lead men’s grooming in
2014, with a 27% value share
It is expected to increase by
a value CAGR of 10% at
constant 2014 prices during
the forecast period 2014-19
Men’s shaving category is
expected to see a CAGR of
37.8 % in the 2014-19 period
and reach a sales value of
INR 38.4 billion in 2019
No competitor holds market
share of more than 15% in
Men’s razors and blades
segment
Source: Euromonitor, Men's Grooming in India

20. Industry Analysis V-Guard Alignment Marketing Mix Financials
Design Raw materials Manufacturing Quality control
Safety Razor Manufacturing Process*
 Depends upon style
 Consist of a hollow plastic handle, a
blade, and a head assembly to keep
the blade in place
 Carbide steel is preferred
 Plastic parts: handle and blade
cartridge, or portions thereof,
depending on the razor design
 Other components: lubricating strip,
springs etc.
 Cutting blade formation
 Support member formation
 Plastic component molding
 Assembly of components
 Packaging
 Hardness rating: Vickers hardness
 Inspection of molded plastic parts
 Razor components are checked by
a computerized vision system
V Guard current capabilities:
• Even though it follows Asset light production model, it still
owns all the product designs
• We believe that the technical expertise of mixers grinders
and intricate level designs of switchgear will enable it to
easily enter the market
• The production can be outsourced as well, but we believe
that self-manufacturing will be the key to launch the range
of products fast
*Source: http://www.madehow.com/Volume-5/Safety-Razor.html

21. Industry Analysis V-Guard Alignment Marketing Mix Financials
PRODUCT
A cost-effective and convenient razor
blades sold via online medium, alternative
to retail chains. The design of the product
will be such that that only V Guard’s blades
can fit into the handle. So the chances of
reuse of the handles with any other blades
are highly minimized. We recommend to
offer twin blade razors and
four-blades razors
PRICE
• Penetration pricing strategy, prices between
offerings of organized and unorganized
sector
• To create initial demand, we can offer
blades compatible handle, free of costs
• We can offer a subscription based model,
where consumers will be sold one twin-
blade for INR 40 and one four-blades razor
for INR 80
* This can change as per the capability and
production maturity of the company
PLACE
Online medium:
• Using our own existing online
website to place the order
• Using existing e-commerce players as
distributors with similar Terms of
Trade (TOT)
PROMOTION
• We believe that humour is the key element to
promote the brand
• YouTube videos explaining the product and
humouring the existing products
• The online shelf space can be negotiated with the
e-commerce players in the terms of trade (ToT)
• The marketing and promotion costs with the
partnered e-commerce players can be negotiated
in the contract signed
• Posters, images can be posted in social media
highlighting the functional benefit of V Guard as
the safest of all razors
Marketing
Mix
Distribution Network
V-Guard has presence in almost entire
southern region via offline channel
Also, its 21 out of 29 branches are in non-south
regions
Going online leveraging its existing distribution
channel will not lead to any significant cost
addition
By selling through its own online portal, the
robust and strong ground network developed
can be leveraged to achieve last-mile delivery
Leveraging the online reach of established
player can come very handy in creating brand
awareness and brand building
There is a growing trend of smartphone and online
buys in the country. orders per million are expected to
more than double from five million in 2013 to 12
million by 2016, which will mean more opportunities
for both consumers and e-Tail companies*
E-commerce is the easiest way to build brand equity in
tier-2 and tier-3 cities. These cities have seen 30%-50%
rise in transactions*
*Source: http://www.pwc.in/assets/pdfs/publications/2015/ecommerce-in-india-accelerating-
growth.pdf

22. Industry Analysis V-Guard Alignment Marketing Mix Financials

23. Industry Analysis V-Guard Alignment Marketing Mix Financials
Total Financial
Financials
vguard.xlsx

24. Thank You.
Team code: BG 13
Team name: V Kreate Anarchy