Fresco has launched a new product and faces stiff competition. Strategy to introduce the new product into Chinese Market

2. • Fresco
is
the
Global
Leader
in
the
Air
Cooler
Market
with
35%
market
share
and
boasts
of
an
Innovative
&
wide
product
portfolio.
• India
contributes
10%
of
the
total
business,
but
profit
margins
remain
low
at
5-­‐9%
due
to
saturation
and
high
degree
of
competitiveness
• Fresco
has
developed
a
new
offering
in
the
form
of
Standing
Coolers.
• Fresco
faces
the
risk
of
rising
popularity
of
Air
Conditioners
and
from
companies
like
Pure4U
with
advanced
products
like
3-­‐way
Coolers,
which
have
a
growth
to
the
tune
of
150%
EXECUTIVE
SUMMARY

3. Target
Markets
• There
are
1829
air
cooler
manufacturers
in
India
and
2814
in
China.
• In
India,
the
total
market
size
of
air-­‐cooler
industry
is
estimated
to
be
around
Rs.
2500-­‐3000
crores.
• Currently,
the
Indian
air-­‐cooler
industry
is
growing
at
a
strong
30
per
cent
rate
per
annum.
• Symphony
Limited
is
the
world
leader
in
air-­‐cooler
industry
with
a
strong
presence
in
over
60
countries.
• North
India
is
a
key
market
and
demand
is
whopping.
• Me
consumption
-­‐
Chinese
are
starting
to
value
individualism
and
are
getting
brand
conscious
due
to
it.
•
Eco-­‐
friendly
-­‐
58.5%
of
respondents
stated
that
they
would
be
willing
to
change
their
lifestyle
to
protect
the
environment.
•
Tech
360
degree-­‐Changes
in
lifestyles
today
make
people
more
dependent
on
science
and
technology.
Individuals
have
around
them
a
battery
of
hi-­‐tech
products
.
•
Free
Free??-­‐
Barters
,discounts
Trends
in
China

4.
• Temperatures
across
northern
India
hover
around
115
degrees
straining
power
grids
and
causing
sporadic
outages
in
New
Delhi
&
states
of
Uttar
Pradesh,
Rajasthan
and
Haryana.
• Last
summer
Delhi
state
government
instructed
government
offices
to
turn
off
air
conditioners
during
peak
hours
• Our
strategy
involves
a
revolutionary
new
product
which
consumes
less
power
and
provides
relief
during
power
outages.
• Rather
than
developing
a
new
division
which
will
work
on
innovation
of
rechargeable
air
cooler
• The
company
we
recommend
to
acquire
is
the
cooler
brand
of
Sogo
• Sogo
is
the
leader
in
innovation
of
rechargeable
air
coolers
• By
doing
so
we
get
the
pioneering
technology
and
the
intellectual
capabilities
of
the
brand
• Presently
Sogo
rechargeable
works
for
4-­‐5
hours
• But
with
our
R
&
D
inputs
we
plan
to
increase
the
timings
to
7-­‐8
hours.
• It
works
like
a
normal
air
cooler
when
power
supply
is
there
Rechargeable
air
Cooler
Acquisition
STRATEGY-­‐1

5.
Introducing
products
that
are
customized,eco-­‐friendly
and
also
adding
smart
air
coolers
Establishing
supply
chain
and
factories
Heavy
promo<on
and
branding
Enter
Chinese
market
with
an
JV
with
Chinese
company
Tik
4
YEARS
PLAN
1st
Year
2nd
Year
3rd
Year
4th
year

6. 1-­‐2
months
before
launch
1-­‐2
weeks
before
the
launch
On
launch
day
1-­‐2
weeks
after
launch
Teaser
Campaign
Preparatory
Campaign
Launch
Activity
Post
Launch
• Viral
advertisements
• Wall
Paintings
in
rural
areas
• Distributing
hand-­‐
bands
with
Fresco
logo
on
it
• Placing
the
fans
in
tele-­‐series
like
Comedy
nights
and
Dia
baki
• Advertisements
in
mobile
apps
and
games
• Advertisements
in
local
bus
stops
• Launch
a
“Spot
the
brand
mascot”
contest
• Press
conference
to
launch
the
new
range
of
air
coolers
• Launch
a
creative
writing
contest
on
social
media
• A
full
page
ad
in
all
leading
national
newspaper
• Repetitive
television
advertising
• Ads
on
radio
and
billboards
• Use
panchayats
heads
to
communicate
the
benefit
of
the
product
in
rural
areas
Activities
Outcomes
• Create
an
excitement
among
people
• Number
of
hits
on
company
website
• Should
become
a
part
of
prospective
customer’s
conversation
• Should
start
receiving
enquiries
for
the
air
coolers
• Point
of
Sale
display
at
dealer
end
• Brand
awareness
among
people
should
increase
• Increase
in
footfall
in
the
stores
• Increased
sales
• Number
of
people
who
visit
the
company
website
should
increase
1-­‐2
month
s
after
launch
• Continue
with
Television
advertising
• Interactive
Hoardings
• Dedicated
presence
on
f
and
Twitter
• Undertake
cross
promotions
with
other
related
products
Sustenance
• C o m p e t i t o r
reaction
• C u s t o m e r
feedback
in
terms
of
mail,
blogs,
etc.
• Press
response
to
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
ADVERTISING
/PROMOTION
PLAN
FOR
STANDING
AIR
COOLERS

7. % Disp.
Genre 20s Spots
Spends in INR
Lakhs
of Inv.
GEC 167 68 34
H Movies 244 19 9
H News 534 20 10
News 486 11 5
NE 70 1 1
Oriya 17 1 0
Bihar 147 3 1
Mah 299 6 3
PHCHP 324 3 1
MP-Cht 178 1 0
WB 192 15 7
AP 276 15 7
Kar 121 9 4
Ker 177 10 5
TN 152 13 6
DD 19 8 4
Total 3402.5 202 100
TV
Total-­‐
2.2
crores
Station No of City No of Spots
Spend in INR
Lakhs
Radio Mirchi 34 100 18
Big FM 45 100 12
Red FM 93.5 48 100 16
Mantra 8 100 1.9
Radio City 22 100 9
Oye FM 7 100 1.7
O'Lala 1 100 0.7
Radio Mango 4 100 1.6
Radio Club 4 100 1.8
Vividh Bharthi 5 100 2
Primary Channel 9 50 3.6
MY FM 94.3 14 100 5
Fever FM 4 100 3.3
Friends FM 1 100 1.4
Hello FM 7 100 2.2
Total 80
RADIO
Total-­‐
0.8
crores
ADVERTISING
BUGDET

8. Ac<vity
Deliverables
Facebook
• Cover
Photo
–
3
revisions
• Daily
Updates
–
2
nos
• Profile
Picture
–
1
nos
• Facebook
Timeline
Development
• Upto
15
creaDves
to
be
made
from
scratch
on
the
account
TwiFer
• Profile
Skinning
and
revisions
–
3
nos
• Daily
Tweets
–
2
nos
• ProacDve,
ReacDve
replies
and
revisions
• TwiKer
Tab
on
Facebook
(inclusive)
DIGITAL
Total-­‐
2.0*12
=
24lakhs
+
10
lakhs
promotion+gifts=
.34
Sr. No City No of towns No. Of Units Sq. Ft. No. of Days Total INR Lakhs
1 Maharashtra 53 91 41379 120 76
2 Punjab 30 75 8046 120 35
3 Karnataka 26 48 35496 120 53
4 Himachal Pradesh 11 11 2574 120 9
5 Gujarat 53 84 21750 120 45
6 Rajasthan 27 35 9624 120 21
7 Madhya Pradesh 52 70 14000 120 22
8 Chhattisgarh 13 16 4940 120 7
9 Bihar 33 33 6600 120 7
10 Jharkhand 18 21 5850 120 9
11 Orissa 29 29 6600 120 12
12 UPE 56 70 23950 120 50
13 UPW 24 26 5200 120 11
14 Kerala 14 18 13590 120 21
15 Tamil Nadu 27 35 16234 120 38
16 Pondycherry 1 4 2129 120 6
17 Haryana 23 24 6038 120 27
18 J&K 4 5 1000 120 9
19 Assam 23 24 8100 120 18
20 Nagaland 2 2 400 120 1
21 Meghalaya 1 1 200 120 0
22 Mizoram 1 1 300 120 1
23 Manipur 1 1 200 120 0
24 Tripura 5 5 1160 120 3
25 Arunachal Pradesh 2 2 400 120 1
26 West Bengal 22 31 13480 120 24
27 Uttranchal 14 28 5600 120 10
28 Andhra Pradesh 34 44 24425 120 33
Total 599 834 279265 549
OOH
Total-­‐
2.8
crores

9. The
selling
expenses
of
FRESCO
have
been
falling
to
virtually
no
selling
expense
in
2012
For
the
same
year,
the
proportion
of
selling
expenses
of
Symphony
was
7.8%
of
its
sales
turnover
To
support
the
suggested
ATL
and
BTL
marketing
we
suggest
3%
of
current
sales
turnover
each
year
to
be
spent
as
Selling
expenses
Ø Marketing
expenditure=
3%
of
161.12
crore=
4.8336
crore
each
year
Ø For
Five
years=
19.33
crore
Ø Expected
Sales
turnover
in
2017=
251.74
Ø Return
on
Investment:
2.26
times
IMPACT
OF
SALES